Sechin said on intentions “Rosneft” to increase contributions to the budget

At a meeting held on December 23, the Board of Directors of “Rosneft” has considered the preliminary results of the company in 2016 and approved the plan of financial and economic activities for 2017-2018. This is stated in a press release published on the website of the company.

The report notes that the plan of financial and economic activities of Rosneft for 2017-2018 “formed on the basis of the updated long-term programme of development and reflects changes in the fiscal legislation of Russia and the possibility of the maneuver as the production in order to enhance the efficiency of sales in the first half of 2017”.

As key tasks for the management of “Rosneft” has put further improvement of operating and financial performance of the company. One of the priority objectives outlined in the plan — the completion of the integration of assets of “Bashneft” in the perimeter of Rosneft and monetization synergistic potential of the combined structure, the report says.

The company stressed that the plan for 2017-2018 provides a balance of sources of funds for implementation of the investment program, execution of scheduled repayments in the loan portfolio as well as dividend payments in the amount that satisfies the requirements of the dividend policy of the company.

As noted by the chief Executive officer of the company Igor Sechin, whose words are included in the press release, the implementation of capital projects in partnership with market leaders will create new jobs and increase revenues to the Federal budget.

“Rosneft” has successfully implemented the tasks set for 2016, despite the unprecedented volatility in global energy markets. The company will continue to work to improve the efficiency of their activities. The company’s dynamic development, implementation of capital-intensive projects in partnership with industry leaders will create new jobs and increase revenues to the state budget of the Russian Federation”, — said Sechin, commenting on the results of the meeting of the Board of Directors.

He also noted that the implementation of the growth potential of the company’s shareholder value will improve the investment attractiveness of Russian assets and the GDP growth of the country.

December 7, Sechin reported to Putin on the conclusion of an agreement to sell 19.5% of Rosneft shares. Purchasers of an asset-steel Swiss commodities trader Glencore and the Qatari investment Fund Qatar Investment Authority. The amount of the transaction amounted to €10.2 billion (692 billion). Under the agreement, Glencore had to pay €300 million of its own funds, Qatar — €2.5 billion and the remaining €7.4 billion pledged to provide Italian Bank Intesa Sanpaolo, with the participation of an unnamed Russian Bank. As reported by a Federal official and a source close to the Board of Directors of “Rosneft”, the deal could Finance the third volume of assets the Bank of Russia — Gazprombank.

To the budget from privatization transactions had to act €10.5 billion (710,8 bn) due to additional dividends “Rosneftegaz”. 16 Dec Rosneftegaz reported on the receipt of funds from the sale of its package. On the same day, Sechin said that the money listed in the budget.

On the eve of Russia’s Finance Minister Anton Siluanov confirmed that the money from privatization transactions, the Federal budget received in full. He also said that “Rosneftegaz” in coordination with the Ministry of Finance to convert currency received from the sale of 19.5% of Rosneft shares. “Us Central Bank, the task was to minimize the effects of attracting monetary resources into the country [from privatization of part of Rosneft’s] terms of market impact, with this task we did,” said Siluanov.