Buy Rosneft: how did you prepare for the privatization of the largest oil companies

The logo of the company “Rosneft”

Photo: Ekaterina Kuzmina/RBC

The President of Russia Vladimir Putin, according to “Vedomosti” invited LUKOIL to participate in the privatization of 19.5% of Rosneft shares. According to the publication, currently forms a pool of companies willing to participate in the privatization; these include, in particular, Sinopec, “Surgutneftegaz” and Kazakhstan’s “KazMunaiGas”. The process should be launched soon, after the corresponding Directive of the government. How was the preparation for the sale of shares of one of the largest oil companies in the country — a review of RBC

December 2014. Prime Minister of Russia Dmitry Medvedev signed a government decision on the alienation of 2,067 million (or 19.5%) of the shares of “Rosneft” for further privatization. The document provides for the sale of shares at a price not below market, but not below IPO price in 2006.

In the framework of the placement of “Rosneft” in 2006 attracted $10.7 billion, of which about $750 million in the course “national” IPO. In addition to the IPO, the funds were raised through placement of global Depositary receipts on the London stock exchange. At present the state share in the capital of Rosneft is 69.5%.

2015. The Minister of economic development Alexei Ulyukayev admitted the possibility of privatization of 19.5% of Rosneft in 2016.

29 September 2015. The government refuses to privatize Rosneft in 2016. As stated by the head of Department Olga Dergunova, there is no economic viability, as well as “documents or proposals, so that was the deal.” “As always, ready to sell, we are always talking about it, and “Rosneft” 19,5%, and Aeroflot. But the current economic situation on the market, the current value of shares of companies causes us to doubt the economic feasibility of this step,” said Dergunova.

December 2015. Against the background of deteriorating economic conditions and falling oil prices, the Finance Ministry has proposed to increase budget revenue through privatization of state-owned major Russian companies. Finance Minister Anton Siluanov said that can be privatized 19.5% of Rosneft shares, for which the state plans to gain at least 500 billion rubles.

17 December 2015. Russian President Vladimir Putin did not rule out the privatization of “Rosneft” for the budget.

“As for the (privatization) of Rosneft, Aeroflot, I’m still in my articles 2012 wrote that it is possible. And, in principle, we will continue this work. Of course, there’s always a question, is now the market conditions to sell this valuable generating results for the economic share of ownership. You never know the situation or not the same”. Vladimir Putin, December 17, 2015

22 Dec 2015. The head of Rosimuschestvo Olga Dergunova stated that a decision on the inclusion of “Rosneft” in the privatization plan for 2016 yet.

January 2016. Finance Minister Anton Siluanov said that the process of privatization of the largest state-owned companies need to start with the sale of state-owned Rosneft.

February 1, 2016. During the meeting with the government Vladimir Putin outlined “key points”, which you have to follow when selling companies. Then the President instructed the Cabinet to work out a list of companies that can participate in privatization.

20 Feb 2016. RBC reported that first Deputy Prime Minister Igor Shuvalov has signed the instruction on preparation for privatization of “Rosneft”.

22 April 2016. The Minister of economic development of Russia Alexei Ulyukayev confirmed the possibility of privatization of state-owned Rosneft.

The end of may 2016. On the possibility of participation in privatization of “Rosneft”, said the Chairman of the Board of Directors of CNPC Wang Yilin.

“The interest is there… When will be created the offer from “Rosneft” on privatization of the shares, we will examine in detail, as this partnership for us is strategic in nature and is an important element of cooperation between the two countries”. Wang Yilin, may 30, 2016

8 June 2016. Finance Minister Anton Siluanov said that “to sell 19.5% of Rosneft in 2016 will be “harder” than the controlling stake of “Bashneft”. At the same time, the head of the MAYOR Alexei Ulyukayev said that the chance to sell “Rosneft” above 50%, but “there are no guarantees”.

13 September 2016. Ministry of economic development submitted to the government proposals for the privatization of state-owned shares of “Rosneft”.

15 September 2016. Alexei Ulyukayev said that he considers it possible to carry out privatization of state-owned “Rosneft” to the end of the year. However, he did not disclose the details of the proposals of the investment consultant for the implementation of 19.5% of Rosneft shares.

12 Oct 2016. Rosneft has closed the acquisition of state-owned shares “Bashneft”, which cost her 329,7 billion rubles. Two weeks later the company sent the Central Bank the project of an offer to buy the remaining ordinary shares from minority shareholders, which can cost 205,58 billion.

“The cost of these is 19.5% (of the shares) Rosneft will increase significantly, and Rosneft has the ability to not only fight off, sorry for the bad manners, the small award, which she gives to the government in the acquisition of “Bashneft”, but also profitable to sell your own package”. Vladimir Putin, on 12 October 2016

October 25, 2016. First Deputy Prime Minister Igor Shuvalov said that “Rosneft” will be able to redeem the upcoming privatization of 19.5% of their shares, if, before the end of the year the Russian authorities will not be able to sell them to a potential investor. “This idea sounded in the case that we will not realize until the end of the year to potential investors. If potential investors purchase the package, no buy back will not” — said Shuvalov.

President Of LUKoil Vagit Alekperov

Photo: Oleg Yakovlev/RBC

31 October 2016. “No,” — said the head of LUKOIL Vagit Alekperov, answering the journalists ‘ question about whether his company to participate in the privatization of 19.5% of Rosneft shares.

November 2, 2016. “Vedomosti” with reference to its source reported that arrived on October 31 at the opening of the field named after Filanovsky in the Astrakhan region, President Putin invited Alekperov in his car, where he made him an offer to take part in privatisation “Rosneft”. The Kremlin has refused to comment on this information, a representative of LUKOIL in conversation with RBC did not do that.

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