Siluanov commented on the Rosneft deal with Glencore and Qatar


Privatisation of a package of “Rosneft” with participation of the Swiss company Glencore and sovereign wealth Fund of Qatar, as planned, will bring to the 2016 budget of about 700 billion rubles. “this money will allow us to attract funds from the Reserve Fund,” said Thursday the Minister of Finance Anton Siluanov. “Money obviously will go, the money we use. Therefore, all that we had planned in the budget in obtaining the privatization of money, we all perform, all will receive”, — assured the Minister.

Earlier, the Finance Ministry has envisaged the possibility of the replacement of expected income from Rosneftegaz of the Reserve Fund amounting to 705 billion rubles. in case the privatization of “Rosneft” to the end of 2016 will not take place.

From the law on the Federal budget for 2016, changes to which was signed by President Vladimir Putin in November, it follows that the entire amount of the funds received by the state “Rosneftegaz” (which owns 69.5% of Rosneft’s shares) from the sale of 19.5% of Rosneft shares, shall be transferred to the Federal budget as dividends to the state for 2016.

Glencore and Qatar’s sovereign Fund will pay for the package of “Rosneft” €10.5 billion, announced yesterday, Vladimir Putin. At the exchange rate of the Central Bank on 7 December 721.2 billion rubles., and at today’s exchange rate — it is less than almost 2 billion rubles “will Convert the currency at the current rate, which rate, either today or yesterday, it’s up to the Bank”, — said Siluanov. The deal hasn’t closed, said yesterday Glencore, the company expects that the transaction will be completed in mid-December.

Such a big deal, as the privatization of 19.5% of Rosneft, could affect the Russian currency market depending on how it is structured, analysts warned earlier. Putin on 7 December at a meeting with the CEO of “Rosneft” Igor Sechin asked the company together with the Ministry of Finance and the Central Bank to develop such a scheme for the conversion of currency from the sale of shares, which will not cause shocks in the foreign exchange market. Sechin told the President that the company is “in contact” with the Central Bank and Ministry of Finance.

“This is a technical question,” the question for the Central Bank and Rosneftegaz, Siluanov told. Not to pour the entire amount into the market and to prevent a sharp strengthening of the ruble and growth volatility, “all this will be done gradually,” he said.

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