Privatization Doesn't Make Sense

According to the President of Russia's state-owned oil giant, Rosneft, privatization of the company does not make sense.

Sergei Bogdanchikov believes the firm can double its value in the next five years from its current $9-10 billion estimated value. He emphasized, "As long as the value of Russian oil assets is not equal to the international value, the state should not sell its stake. This is like selling it dirt-cheap."

Bogdanchikov concluded, " when the value of Russian resources catches up with Western prices, then the state can sell the company at a true market price."