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Russian Cabinet approves selling 19.5% stake in Rosneft
December 1, 2014, 9:13 am

Rosneft pumps 40 percent of Russia’s crude [Image: Rosneft]

Rosneft pumps 40 percent of Russia’s crude [Image: Rosneft]

The Russian Cabinet on Monday issued a resolution to sell a part of the state’s stake in Rosneft, the world’s top oil producer by output.

As part of a much-delayed initiative, 19.5 per cent of the company’s stock will now be privatized, Itar Tass agency reported. Chinese and Indian investors have evinced interest in buying stakes, the Russian government claimed earlier this year.

Rosneft pumps 40 percent of Russia’s crude.

Moscow set out privatization plans covering a number of Russian firms in 2010, aiming to boost state coffers and improve corporate governance.

Russia’s Minister of Economic Development Alexei Ulyukayev said earlier this year that, “Rosneft, being a first-class oil company and an active market player, the company can manage its problems without support from the state.”

Ulyukayev and Rosneft CEO Igor Sechin have said they favoured a $8.12 per privatization share price.

Moscow-based Rosneft was hit with US sanctions in July.

Earlier last month, Rosneft and Chinese oil major CNPC signed an agreement to sell 10 per cent of shares in Rosneft’s subsidiary Vankorneft to China National Oil and Gas Exploration and Development.

 

TBP

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