The deal on privatization of shares in Russian oil major Rosneft is completed, Chief Executive Officer of the company Igor Sechin reported to Russian President Vladimir Putin on Wednesday.
"Igor Sechin reported to Vladimir Putin in the Kremlin that the privatization deal for 19.5% shares in Rosneft was completed," press secretary of the President Dmitry Peskov said. "A consortium of Glencore and Qatar’s sovereign fund has become the strategic investor," Peskov added.
"The budget of the Russian Federation will receive 10.5 bln euro from the deal," Peskov said.
Putin instructed to perform phased conversion of revenues from Rosneft privatization into rubles in order to avoid exchange rate fluctuations, Peskov noted. "The President noted a huge amount of currency [from the sale of Rosneft shares] will come to the country soon and an appropriate phased conversion system should be provided," TASS quoted Peskov as saying.
"The President asked [Rosneft CEO Igor] Sechin to work out an appropriate conversion action plan in cooperation with the Government, the Finance Ministry, and the Central Bank," he added. Rosneft privatization deal should not lead to ruble fluctuations on currency market, according to Putin.
Government will continue holding controlling stake in Rosneft, Putin said.
According to Sechin, Rosneft hold talks with more than 30 potential investors in the course of preparation of its 19.5% stake for sale. "We held commercial negotiations with over 30 companies, funds, institutional investors, sovereign funds and financial institutions of Europe, the US, Middle East, and Asia-Pacific nations," Sechin said.
"The consortium becoming the Rosneft shareholder was created by Qatar’s sovereign fund and Glencore trading company, our long-term partner. Each of consortium members has 50%," Sechin said.
He said consortium will pay for Rosneft shares by own and borrowed funds. Rosneft will set up joint venture in production sphere with the consortium participants. The deal is strategic, with additional agreements, he noted. Rosneft selling price is the highest possible, he added.
