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Russia may cut the stake in Rosneft

Staff writer |
The Russian government may cut the state's holding in Rosneft to 51 percent, Prime Minister Dmitry Medvedev said.

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"The question is, what size stake in Rosneft do we need? We can go down to 51 percent," said Mr. Medvedev.

The state can reduce its holding to this level and privatize up to 49 percent of the nation's largest oil company "without any threat of forfeiting our strategic position," said said Mr. Medvedev, but did not specify when the privatization of part of the company would take place.

The Economic Development Ministry sent its proposals to the government in April for the additional privatization in 2013 of around 19 percent of Rosneft, reducing the state's share in it to 50 percent plus one share. State-owned Rosneftegaz holds 69.5 percent of Rosneft, while Britain's BP holds 19.75 percent. In March, Rosneftegaz sold 5.66 percent of Rosneft as part of the deal to buy the TNK-BP oil company.

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