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Rosneft CEO offers his plan to cover the Russian budget gap

Igor Sechin suggests buying the controlling stake in Bashneft for $5 billion in cash.

30.Aug.16 1:35 PM
By Alesya Davydova


Rosneft CEO offers his plan to cover the Russian budget gap

Rosneft CEO Igor Sechin has suggested his plan to help the Russian government close the budget gap by enlarging his own company, states citing a new report by Bloomberg.

Igor Sechin, CEO of one of Russiaís largest oil companies Rosneft, has recently announced his plan to cover the gap in the federal budget. As a part of his anti-deficit program Sechin suggests that Rosneft should buy the controlling stake in the refinery company Bashneft for $5 billion in cash. Two senior officials cited by Bloomberg estimate the sum as a premium to the firmís current market value.

Besides the countryís government is likely to earn an additional $11 billion after the planned privatization of Rosneft. The sale of 19.5 percent of the company has been postponed but it will still occur in the nearest months. By these two steps the country can generate $16 billion Ė the sum is enough to cut the federal deficit in half.

Sechinís offer is based on the analysis conducted by the Italian bank Sanpaolo SpA that was submitted to the Russian government.

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