Zarubezhneft recognized as “an instrument of foreign policy”

The state will postpone the real privatization of Zarubezhneft to the end of the decade, the company’s IPO will be conducted by 2020. By 2016 only the state funds to which 10% of shares are proposed can be included in the capital of Zarubezhneft. The Federal Agency for State Property Management believes, this is the way to take into account the strategical interests of the state and keep the company’s international contracts.

By 2020 the share of the state in Zarubezhneft can reduce to 50% plus share, the head of the Federal Agency for State Property Management Olga Dergunova said yesterday. As she has reported, by 2016 only 10% of the company’s shares will be privatized “in order to improve the corporate management and obtain additional long-term money”. At the same time she added, the structure of the transaction hadn’t been discussed yet and by 2020 the state would decide on further privatization proceeding from the state of the company’s investment projects.