By October 27, 2016 Read More →

Rosneftegaz may deposit up to US$28.61 billion at Gazprombank


Rosneftegaz controls Rosneft, Russia’s state-owned oil company.  

Rosneftegaz deal may help Russia prop up budget

MOSCOW, Oct 27 (Reuters) – Russia’s state energy holding Rosneftegaz could deposit up to 1.8 trillion roubles ($28.61 billion) at Gazprombank, two sources familiar with the matter told Reuters.

The sources asked not to be named due to sensitivity of the matter. The economy ministry and Gazprombank declined to comment on the issue.

One of the sources said the funds may be deposited at Gazprombank for a period from one day to three years.

Russia’s government wants to sell a 19.5 per cent stake in oil giant Rosneft by the end of the year to plug holes in the budget. Rosneft is controlled by the state via Rosneftegaz.

First Deputy Prime Minister Igor Shuvalov said earlier on Thursday that the government wants to sell a state stake in Rosneft to “real investors” but may ask the company to buy its own shares to prop up the country’s budget.

Russia’s budget deficit may reach 4.7 per cent of gross domestic product this year if Moscow fails to sell a state stake in oil giant Rosneft, a senior vice president at Moody’s Investor Service said on Thursday.

Speaking at an economic conference, Kristin Lindow said Russia’s budget deficit would stay at 3.7-3.8 per cent of GDP in 2016 if Russia manages to sell a part of Rosneft.

Russia’s President Vladimir Putin had initially ordered to keep 2016 budget deficit at no more than 3 per cent, an ambitious target that is unlikely to be achieved this year.

(Reporting by Oksana Kobzeva, Darya Korsunskaya and Denis Pinchuk; Writing by Andrey Ostroukh andDenis Pinchuk; Editing by Lidia Kelly and Andrey Ostroukh)

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