Why the state can’t part with Rosneft?

The Ministry of Economic Development has proposed to privatize 19% of Rosneft’s shares in 2013. Today the state owns 69.5% in this company through Rosneftegaz. The decrease of the state share to 50% plus 1 share is theoretically possible – then Rosneft will be still able to enjoy the privileges of a state company, but its further privatization is unlikely to take place in the current year.

Rosneft was proposed to be privatized along with other companies with state participation, for example Aeroflot, Rostelekom and Sheremetyevo. The aim of the government's stakes sale to private investors is replenishment of the state’s incomes and decrease of the federal budget deficit. In the first quarter of 2012, the deficit reached 141 billion rubles, although the planned year rate is 520 billion rubles.