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Wednesday 22.05.2013 | Name days: Emīlija

Rosneft to be privatized

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The order of the President of Russia to recognize Rosneft as a strategically significant enterprise does not prevent possibility of the sale of this company’s shares, Minister of Economic Development of Russia Andrey Belousov reports.

«If the decision is made in a way it is recommended, instructions will not cancel the topic of privatization. I would like to reports – it does not mean that there is a taboo on the company’s privatization – there isn’t», – BBC cites the minister’s words.

President of Russia Vladimir Putin previously signed and order about the inclusion of Rosneft on the list of strategically important companies. According to this order, the «golden shares» of Rosneft, which belong to the state, cannot be privatized.

At the same time it became known on Thursday, that Putin issued an order to the government to confirm the privatization program of 2013-2015 in relation to blocks of shares of fuel and energy complex enterprises owned by Rosņeftegaz. This also relates to Rosneft.

As the President’s Press Secretary Dmitry Peskov stated, the order does not change the strategic plans for privatization.

Analysts of RusEnergy Consultant Company Mikhail Krutihin notes that two ideologies «struck their heads together» in the situation of Rosneft. On one hand there is the head of the company, «statesman» Igor Sechin, who is against privatization; on the other hand – the «liberal wing» led by the Arkady Dvorkovich, who, in fact, has already included Rosneft on the list of companies to be privatized.

«If the company’s shares do end up being sold, then the state share of the company will fall significantly. It will, most likely, mean the collapse of Rosneft projects with Western companies (Exxon Mobil, Eni and Statoil)», – Krutihin points. According to the expert, foreign companies will most likely refuse to cooperate, because they will be entitled to an insignificant amount of shares.

«In accordance with the order, the state reserves the «golden shares», which give the right to veto any important decision. However, even now there are reports from the government that the privatization of the company is, in fact, possible. It means that the order is very ambiguous», – Krutihin says.

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