ALROSA, Russia Oil and Gas
The Alrosa’s Board of Directors has unanimously decided to transfer the shares of its gas assets in Russia.
Alrosa on sales
Nowadays Russia prepares to privatize the shareholdings in several companies including Alrosa AK. Despite the plan to offer a large shareholding of 10.9% in the company to the market, the stocks’ rates will be under the pressure in the near time. The investors should not await their considerable growth in this year, the market analysts and experts think.
Interview with RFPI chief Kirill Dmitriyev
Alrosa, Bashneft, VTB and Sovcomflot are at the same stage of preparedness for privatization, said the Deputy Economic Development Minister Nikolai Podguzov.
Sberbank and VTB may attract foreign partners for the privatization of Alrosa and Bashneft, the Deputy Prime Minister Arkady Dvorkovich told reporters.
Russian Ministry of Economic Development chooses investment banks for privatization of VTB, Bashneft and AlrosaEdited by Rhod Mackenzie / 2016-04-05 11:54:39
The Russian Ministry of Economic Development has selected only Russian investment banks to carry out transactions for the sale of state-owned shares in Bashneft and Alrosa, as well as in VTB Bank, the Ministry reports.
In mid-March, the Ministry of Economic Development began working on the selection of banks for the organization of the privatization transactions for the sale of shares of Bashneft, Alrosa and VTB. The Deputy Economic Development Minister Nikolai Podguzov said that more than 10 banks, including foreign ones, filed applications.
Shares of state-owned companies Bashneft, Alrosa and Rosneft can be sold the first under the privatization plan, the Minister of Economic Development of Russia Alexei Ulyukayev said.
"These are companies that are already in the privatization plan. These are public companies, which are in price on the market. Because of this, they are technically and legally prepared to the best and best-known for investors. We’ll start from them," - said Ulyukayev.
In 2016, the Ministry of Finance plans to earn 1 trillion rubles from privatization. On Monday, the sale of state assets was discussed at the meeting with Vladimir Putin. The RBC estimates what and at what price the state can offer to investors.
What they sell
In December 2015, against the background of the deteriorating economic situation and falling oil prices the Finance Ministry proposed to increase the budget revenues through privatization of state-owned packages in major Russian companies. At the big press conference in December President Vladimir Putin confirmed that the state could agree for the privatization of state-owned companies "not to burn the reserves". The Finance Minister Anton Siluanov evaluated the possible revenue from the privatization in 2016 at 1 trillion rubles. The amount was calculated based on the forecast of the average annual oil price at $40 per barrel and the budget deficit at 3% of GDP. In 2015, the budget revenues from the privatization amounted to only 5 billion rubles.
Alrosa, which share is a quarter of all diamonds, produced in the world, has decided to sell its non-core asset. The company put up for sale facilities of unfinished refinery in Mirny in Yakutia, the Rossiyskaya Gazeta reports.
According to the notice, published in the Rossiyskaya Gazeta, facilities of unfinished construction (degree of readiness is 70%) and real estate were put up for sale. The whole complex is located on a site, rent by Alrosa till October 2032. The site is located 11.5 kilometers from the town of Mirny (Yakutia).
In 2016"ALROSA" and "Rosneft" will resume talks on the possible deal on the gas assets of diamond miner ("Geotransgaz" and "Urengoy Gas Company") after receiving new data on the field's inventory, the vice president - CFO "ALROSA" Igor Kulichik stated yesterday in a conference call on the results of the IFRS for Q1.
Gas Assets are "hard to sell", he stated, as well as Viluiskaya GES-3 owned by "ALROSA", the terms of the contract on which "ALROSA" has agreed for a long time with "RusHydro". "But at the moment gas asset is not aburdensome non-core asset, it generates net cash flow and profits," - I.Kulichik stated.