Putin seeking investor for Rosneft stake

Putin seeking investor for Rosneft stake

The Russian government is seeking a strategic investor to buy a 19 per cent stake in major oil producer Rosneft (MCX:ROSN) as part of a privatisation plan, President Vladimir Putin announced yesterday.

“The partner should not pay attention to the current share price but should look into the future,” said Putin. “If we find such a partner, then we will take this step.”

Rosneft, a state controlled oil firm, is on a Russian government list of companies criticised for privatisation in 2016 in order to stop the state budget deficit from surging. BP owns 19.75 per cent of the firm.

Russian Economy Minister, Alexei Ulyukayev said legal advisors had been selected for the firm’s privatisation.

Rosneft turned into Russia’s top oil producer and refiner following a controversial purchase of assets of late oil company Yukos at state auctions.