The Head of Bashkortostan, Rustem Khamitov has announced on August 17, 2016, that the delay was witnessed owing to a weakening economy.
The republic of Bashkortostan, Russia holds a 25% stake in Bashneft.
In an interview to Rossiya 24 channel, Mr. Khamitov said: «The economy should return to a normal path. After that, if there is a need we can discuss the ways of privatization.»
Khamitov said Reuters in a phone interview, that the Russian government should delay selling its stake in mid-sized oil producer Bashneft (BANE.MM) for up to 5 years and until the company is worth more, but it is up to Moscow to decide. «In my opinion, after certain work regarding upgrading and diversifying production is done, after some economic stability is back, after that and only after that, if there is a clear need, the theoretical option of selling a federal stake may be considered», told Khamitov.
CEO of Sberbank German Gref said, that that postponing privatization of Bashneft is not a positive signal for the market.
«At the moment, I will not comment on whether 2017 will be a better year for privatization in terms of the economic situation. So far, it promises to be better», Gref said.
Concerning this situation the First Deputy Prime Minister Igor Shuvalov said on August 17, 2016: «We should focus on Rosneft. When the stake in Rosneft is sold, the government will return to selling a stake in Bashneft as we have the President's order to privatise it.»
In an external assessment, Bashneft’s value stood at around $4.7 billion. This could have been Russia’s largest sale since Rosneft PJSC’s IPO of $10.7 billion in 2006.
Shares in russian oil firm Bashneft fell as much as 15 % on August 17, 2016, after the Prime Minister Dmitry Medvedev postponed plans to sell a government stake in the company.
