Rosneft Privatization Seen in H2

Rosneft Privatization Seen in H2Rosneft Privatization Seen in H2

Privatization of Russia’s oil major Rosneft is expected to take place in the second half of the year, Russia's Finance Minister Anton Siluanov said. The Russian government plans to sell a 19.5% stake in the firm, Reuters reported. Russia's presidential aide, Andrey Belousov, had said the Russian government could not sell its stake in Rosneft on the public market. “Considering that it is planned to sell 19.5%, I think it would be appropriate if there are two investors, not only one investor, because it is quite a big package and these should be strategic investors,” he said. Rosneft has had tough times as of late, with its 25-year deal—previously valued at $270 billion—to supply oil to China National Petroleum Corp now at risk as crude prices are still low. These prepayment contracts have been a major source of alternative financing for Rosneft. Russian Deputy Energy Minister Alexei Teksler said state-run CNPC was interested in acquiring a piece of Rosneft. China confirmed its interest in securing its long-term oil supply.