China intends to buy a part of Rosneft but is not satisfied with the price

​The oil companies of China might participate in the privatization of Rosneft, the interviewed experts said.

The Minister of Economic Development, A. Ulyukaev, said that the Government plans to sell 19.5% of Rosneft’s shares in 2016. The Government now holds 69.5% in Rosneftegas. As a result of  the possible deal its stake might fall to 50%.

China might participate in the privatization of Rosneft, K. Tachennikov, chief oil and gas analyst of BCS Financial Group, says. The company has already sold the stakes in its branches to the Chinese investors.

However, the interest of China in the purchase of Rosneft’s shares will mainly depend on the price of shares. Taking into account the fact that a number of potential buyers of this stake is limited due to sanctions, I doubt the price of $8.12/share will seem attractive to China, Mr. Tachennikov said.

According to the order signed in November 2014 by the PM of Russia, D. Medvedev, Rosneft’s shares can’t be sold lower than the IPO price of $8.12/share. The current price of Rosneft’s shares is about $4, mainly due to the weakening of the rouble.