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Privatization of Rosneft Not to Occur in 2014, Issue Remains Open for 2015

The privatization of Russian energy giant Rosneft may occur in 2015, the Russian Economic Development Minister declared. Currently, British multinational energy giant BP owns almost 20 percent of Rosneft shares.

The privatization of Russia’s Rosneft energy company’s shares will not happen in 2014, but remains possible next year, Russian Economic Development Minister Alexei Ulyukayev said Thursday.

"I think that this year [the privatization of Rosneft] will definitely not happen, but the issue remains completely open for next year," Ulyukayev said.

In mid-July, Alexei Ulyukayev said that the government was ready to privatize 19.5 percent of Rosneft’s shares at a price no lower than the initial public offering. Rosneft’s IPO in July 2006 stood at $7.55 per share.

In August, Ulyukayev confirmed the plans for Rosneft’s privatization, explaining that the process will most likely go in two stages.

Rosneft is one of the leaders in Russia’s petroleum industry. The company’s activities include hydrocarbon exploration and production, upstream offshore projects, hydrocarbon refining, and crude oil, gas and product marketing in Russia and abroad.

Currently, the company’s main shareholder (69.5 percent) is state-owned Rosneftegaz. British multinational energy giant BP owns another 19.75 percent, while the remaining 10.75 percent is publicly traded.

Sputnik News
Published on:
December 4, 2014
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