MOSCOW: The Kremlin on Wednesday said that Russia had finalized a deal to privatise 19.5 percent of state-owned oil giant Rosneft.
Rosneft chief Igor Sechin informed President Vladimir Putin “about the completion of a privatization deal of 19.5 percent of shares of the largest Russian oil company Rosneft,” said Kremlin spokesman Dmitry Peskov. He added that its investors were the Glencore Consortium and Qatar’s sovereign fund and that the move would contribute 10.5 billion euros to the budget.
Putin stressed that the controlling stake in the company would remain in the hands of the Russian government.
The Kremlin leader added that the move was the “largest privatization deal” in the global energy sector this year.
Once a little-known firm, Russia’s Rosneft has enjoyed a meteoric rise under Putin.
Headed by the Kremlin strongman’s powerful ally Sechin, it has scooped up some of the most prized assets in the Russian oil sector in a series of controversial deals.
Moscow — which is not a member of OPEC — has said it is ready to reduce crude output by 300,000 barrels a day in the first half of next year.
OPEC and non-OPEC members are set to meet in Vienna on Saturday to discuss the implementation of the deal to slash output.
Experts predict that if oil prices remain higher than expected, the Russian government will use the opportunity to increase spending ahead of the 2018 elections instead of reducing its deficit.
Rosneft chief Igor Sechin informed President Vladimir Putin “about the completion of a privatization deal of 19.5 percent of shares of the largest Russian oil company Rosneft,” said Kremlin spokesman Dmitry Peskov. He added that its investors were the Glencore Consortium and Qatar’s sovereign fund and that the move would contribute 10.5 billion euros to the budget.
Putin stressed that the controlling stake in the company would remain in the hands of the Russian government.
The Kremlin leader added that the move was the “largest privatization deal” in the global energy sector this year.
Once a little-known firm, Russia’s Rosneft has enjoyed a meteoric rise under Putin.
Headed by the Kremlin strongman’s powerful ally Sechin, it has scooped up some of the most prized assets in the Russian oil sector in a series of controversial deals.
Moscow — which is not a member of OPEC — has said it is ready to reduce crude output by 300,000 barrels a day in the first half of next year.
OPEC and non-OPEC members are set to meet in Vienna on Saturday to discuss the implementation of the deal to slash output.
Experts predict that if oil prices remain higher than expected, the Russian government will use the opportunity to increase spending ahead of the 2018 elections instead of reducing its deficit.
