Russia's government will hold more than 70 percent of oil company Rosneft once the firm completes its upcoming stock market listing, Economic Development Minister German Gref announced Wednesday at a forum in Saint Petersburg. Fewer than 30 percent of shares will be offered on exchanges in London and Moscow.
The flotation, planned for next month, could raise between 10 and 14 billion dollars, potentially ranking it among the largest IPOs in history. Rosneft is currently Russia's second-biggest oil producer.
Separately, Rosneft chief executive Sergei Bogdanchikov defended the company's 2004 acquisition of the Siberian oil facility Yuganskneftegaz, which was purchased from the collapsed Yukos at a price international experts considered well below market value. Bogdanchikov said court rulings in Houston, London, and Russia had resolved all legal questions surrounding the deal.
The Yuganskneftegaz acquisition transformed Rosneft from a minor domestic player into a major producer, contributing significantly to the company's net profit of 4.1 billion dollars last year. Some foreign investors have raised concerns about potential legal exposure tied to the asset, though Bogdanchikov said he detected no serious alarm among the investment community during recent meetings.
Historical summary. TurkishPress restated this wire report, first published in June 2006, in its own words.