Russian government to sell stakes in Rosneft, VTB and Sovcomflot in 2012

The Russian government has prepared a $10 billion privatization list for 2012 that includes the sale of a 10-15 percent share in state-run oil major Rosneft, 10 percent in number-two lender VTB and 25 percent in shipping giant Sovcomflot, Alexei Uvarov, head of the Economic Development Ministry’s property department, said on Friday.

The government also plans to sell 4.11 percent in Federal Grid Company of Unified Energy System (FGC UES) and a stake in top hydro power generator RusHydro the size of which is to be determined later.

Twenty-five percent minus one share in Sovcomflot is to be sold in December 2011 and another 25 percent in 2012, said Uvarov.

Last fall the government approved a three-year $59 billion privatization program, under which the state was to reduce its stake in the companies to just above controlling. The privatizations kicked off in February with the sale of a 10 percent in VTB for 95 billion rubles ($3.4 billion).

Uvarov said the next 10 percent stake in VTB would be sold for at least as much.

“We expect budget income from privatization to amount to 300 billion rubles in 2012, 380 billion in 2013, 475 billion in 2014,” Uvarov said, adding that the sale of Rosneft would fetch the most – over 200 billion rubles.

The government also plans to sell 25 minus one share in state-run Russian Railways (RZhD) in 2014.

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