Russia says completes Bashneft sale to Rosneft for $5.3 billion

Bashneft
Two bidders were vying for Russia’s mid-sized oil producer, Bashneft. Reuters photo by Sergei Karpukhin.

Bashneft sale part of privitisation drive

MOSCOW, Oct 12 (Reuters) – The Russian government has completed the sale of a controlling stake in mid-sized oil producer Bashneft to the Kremlin-owned Rosneft for 329.69 billion roubles ($5.30 billion), the economy ministry said on Wednesday.

The sale is a part of a government privatisation drive aimed at narrowing the state budget deficit.

The ministry, citing the minister, Alexei Ulyukayev, said Rosneft’s bid was higher than a valuation of between 297 billion roubles and 315 billion roubles, while the unidentified second bidder offered a lower bid.

Russian President Vladimir Putin said on Wednesday that the Kremlin-controlled Rosneft has used its own funds to buy a controlling stake in the mid-sized oil producer.

Earlier on Wednesday, Putin said that Russia’s privatisation drive will be more efficient after Rosneft purchases the state’s stake in Bashneft.

(Reporting by Vladimir Soldatkin; Editing by Adrian Croft)