The Central Bank will allow pension funds to participate in privatization of VTB and “Rosneft”


The Bank also plans to withdraw from the companies that manage pension savings, the restrictions, which prevent to participate in privatization. Now management companies can buy in pension funds shares only on the stock exchange or directly from the Federal property Agency. However, some assets — for example, “Rosneft” — the state plans to sell to particular investors in off-exchange trading, that is, through a negotiated deal. Pension funds now may not participate in such transactions.

The Bank of Russia has sent the draft guidelines to eliminate these restrictions, for approval to the Ministry of justice, reported the press service of the regulator. Thanks to this document, funds will be able to buy shares of state companies on OTC transactions subject to several conditions. Stock trades should take place at a price determined by government decision, within 10 days from the date of adoption of this decision. In addition, transactions must take place on terms of delivery versus payment or pretpostavki securities of the counterparty, said the press service of the Central Bank.

The new draft guidelines will also allow the funds to buy assets not directly at Rosimushestvo (i.e. the state), and the placement agents.

In accordance with generally accepted business practices, the Agency concludes an Agency agreement with the Bank and instructs him to carry out on behalf of the privatization, the press service of the Central Bank. In this arrangement, the ownership of these gosaktsii according to the law “On securities market” goes to the agent, after which sells them to end customers. This means that according to the law only when the planned privatization of the assets will sell, not the state, and banks that act as agents for accommodation and have already repurchased these assets.

In the privatization plan for 2016 is selling 19.5% stake in Rosneft, a 50.1% Bashneft, 10,9% — VTB and ALROSA. Wednesday, 8 June, the Minister of economic development Alexei Ulyukayev told reporters that the privatization of ALROSA and “Bashneft” will take place through the stock exchange, while shares of “Rosneft” will be sold fully or strategic investors, or partly by them, and the remainder on the open market.

The authorities have repeatedly stated the desire to attract pension funds by privatization. “The participation of pension funds in the privatization processes are certainly in demand,” — said President Vladimir Putin. Previously, the Ministry held several meetings with the largest private pension funds, and discussed the possibility of their participation in privatization. This was told Deputy economic development Minister Nikolai Podguzov on the Exchange forum: “Funds are interested in buying shares, they have the resources,” he said.

The Ministry of economic development are even willing to consider the NPF as a key investor. However, the government is not ready to offer them a discount, because stocks are at attractive levels, he added Podguzov.

However, managers of the company want from the state the prize when placing, says General Director UK “Kapital” Vadim Soskov. “We are ready to participate in privatization, but on the condition of the award. We are interested not just buy a stake in privatization, and to benefit for future retirees. Just buy we can and in the secondary market,” he explains. “Participation in the privatization of interest to us. It’s high-quality assets. But it all depends on the conditions and we have not announced”, — said earlier the top Manager of one of the largest non-state pension funds.