Putin announced the “true” privatization of Rosneft

Russian President Vladimir Putin said that a possible buyout by Rosneft of its own shares from the state would be an "intermediate step" towards a "true" privatization of the company.

“If this is done, then only as an intermediate step in order to take the next [step] towards true privatization, including with the involvement of strategic investors, maybe foreign ones, under the control of the state,” the president said.

According to Interfax, Putin said that Russia "will continue to follow the path of real privatization, but not in a falling market."

“The Russian budget should receive money from the sale of Rosneft shares this year,” the president said, speaking after a meeting with the leaders of the BRICS countries in Goa.

“The question is not to provide a buy-back to buy back Rosneft’s own shares and calm down and fall asleep safely without thinking about anything,” he said.

TASS

• The privatization of 19.5 percent of the shares of Rosneft is planned to be carried out before the end of 2016. In early October, Vedomosti reported that the company plans to buy back these shares on its own. Later, the company confirmed these plans, but Economic Development Minister Aleksey Ulyukayev said that "no buy-backs" were envisaged under the privatization schedule.
• In October 2016, Rosneft bought a state-owned stake (slightly more than half) of Bashneft. It was assumed that Bashneft's shares would be sold at auctions that state-owned companies would not be allowed to participate in (in particular, Rosneft, 69.5 percent of which is owned by the state through Rosneftegaz). However, later it was decided to sell the company to Rosneft without bidding. According to Vladimir Putin, the company offered the highest price.