Medvedev ordered to sell Bashneft to Rosneft

Prime Minister of Russia Dmitry Medvedev on Monday at a meeting with Deputy Prime Minister announced that he had signed a decree on the sale 50,755% of the shares of the company “Bashneft”, “Rosneft”, reports TASS. The order, according to Medvedev, stipulates the amount of the transaction 329 billion 690 million rubles. He said that the payment for the package must be received before October 14.

The representative of the FAS said on Monday afternoon that the service still had not received a petition of “Rosneft” to buy a controlling stake in Bashneft.

At the meeting, Medvedev also instructed the government to organize the work on privatization of 19.5% of Rosneft shares until the end of 2016.

The government planned to sell a controlling stake in Bashneft in September-October of 2016. Applications for participation in the privatization filed Rosneft, LUKOIL and Independent oil and gas company, Fund Energy, Antipinsky oil refinery, RDIF, “Tatneft” and “Tatneftegaz”.

Against the intention of “Rosneft” to participate in privatization made Deputy Prime Minister Arkady Dvorkovich and presidential aide Andrei Belousov. It’s “stupid” to “one state-owned company participated in the privatization of the other,” explained Belousov. Russian President Vladimir Putin in an interview with Bloomberg called the purchase “Bashneft”, “Rosneft” “is not the best option,” but said that ultimately, “to budget is important, who will give more money in trades”.

In mid-August, the government postponed the sale of “Bashneft” for an indefinite period. As written by Reuters, citing three sources in government and industry, it was caused by the intention to avoid collisions within the Russian elite before the elections to the state Duma.

The privatization of “Bashneft” was resumed on September 30. October 1, the head of Bashkortostan Rustem Khamitov named “Rosneft” the main contender for the package. On the same day, the Board of Directors of “Rosneft” has approved participation in a “significant deal,” without revealing its details.

6 October it became known that the government issued a Directive requiring state representatives in the Board of Directors of “Rosneft” to vote for the purchase of state-owned stake of “Bashneft” and to instruct the head of the company Igor Sechin, to conclude a contract until October 15. The Directive, signed by the first Deputy Prime Minister Igor Shuvalov indicated that the transaction amount must not exceed 330 billion rubles, Two of the sources in the Ministry said that Shuvalov signed a Directive on 1 October — that is the day of the meeting of the Board of Directors of “Rosneft”.

LUKOIL, which was another main contender for “Bashneft”, refused to participate in the privatization, after the government of Russia issued a permit Rosneft to buy an asset, said Vedomosti, citing a source. October 9 the Minister of economic development Alexei Ulyukayev said that the purchase of Bashneft had been filed two binding bids. One, he said, came from “Rosneft”. A second company, the Minister declined to name, noting that it was not LUKOIL.