The head of “Tatneftegaz” appealed to Putin with a request to sell 75% of “Bashneft”

Executive Director of “Tatneftegaz” Sergey Bahir, sent the President of Russia Vladimir Putin a request with an offer to sell 75% of shares of “Bashneft” in one package. Reports about it “Газета.Ru”, which is a letter bahira the head of state of 22 June 2016.

From the text of the letter that 25% of shares of “Bashneft”, belonging to Bashkiria, “Tatneftegaz” willing to pay $2 billion and return this package in ten years.

Specific proposals for the cost and time-package ownership Bahir in a letter to Putin did not, however, the publication concludes that over 75% of “Bashneft” “Tatneftegaz” can pay at least $6 billion.

In the letter Bahir noticed that the President’s order of March 16, the Ministry of economic development and Rosimushchestvo has already sent to the government of Bashkiria request to jointly sell their shares of “Bashneft”. Minister of land and property relations of the Republic Evgeny Guryev opposed the privatization of this package. The head of Bashkortostan Rustem Khamitov also suggested not to sell the government’s stake in Bashneft (of 50.08%) in 2016 or to sell only 25% to the company maintained its social obligations to the Republic.

Executive Director of “Tatneftegaz” the letter said that the approach of Guriev “inconsistent with the economic interests of the state.” According to him, the amount of the planned dividend of shares of “Bashneft” for the Republic for the previous year is less than $100 million Bahir indicated that the state could lose heavily in case of refusal from the sale of the company. According to him, “Bashneft” under control “Tatneftegaz” will not remove myself from social obligations. In addition, after ten years, the action will return to the state. He also added that, if the shares of “Bashneft” will not be sold as a single package, it will lead to serious problems for the effective management of the company.

Putin forwarded the letter to bahira the head of the government Dmitry Medvedev on 31 July 2016 with a proposal to “consider and report opinions,” writes “Газета.Ru”.

Bahir says Putin not for the first time. In February of 2016 he was sent to the President a letter in which he proposed to convey “Tatneftegaz” the whole state stake in Bashneft (75,08% plus one share) in “temporary possession” for ten years. The phrase “buy” in that letter may sound. After that Bahir was sent another letter in which he thanked the President for their proposal “Tatneftegaz” attention.

How to write “Vedomosti” with reference to the copy of the February letter, in case of the consent to the transaction, the Agency and Bashkortostan would receive $4 billion and $2 billion respectively. For ten years, the Federal and Republican budgets would get $165 million due to the dividend while maintaining net profit of the company and the scheme under which “Bashneft” directs on dividends of 25% of annual net profit.

It was assumed that after 10 years all of the shares of Bashneft will return to the state. In that case, if the value of the net assets of the company would have been lower than on the date of sale, “Tatneftegaz” would return the difference to the budget. If the above — would have left no more than 50%.