Reference
Submitted by the Russian Ministry of Economic Development.
In accordance with the major approaches to setting up the next few years’ budget and tax policy, proceeds are envisioned for the federal budget from the sale of shares of the Rosneft Oil Company when they are sold at a price not below the IPO.
Based on the Decree of the President No. 1502, of 7 December 2004, and the Government’s Instruction No. 1590-r, of 12 December 2004, 69.5 percent of the Rosneft Oil Company’s shares are owned by Rosneftegaz, 100 percent of whose shares are the property of the Russian Federation.
The forecast plan (programme) of the federal property privatisation for 2014-2016 (approved by the Directive of the Government No. 1111-r, of 1 July 2013), envisions a decrease of Rosneftegaz shares in the Rosneft Oil Company’s equity capital to 50 percent plus one share until 2016.
The Russian President’s Decree No. 1009, of August 2004 included Rosneftegaz in the list of strategic enterprises and strategic shareholding companies.
In accordance with Federal Law No. 178-FZ, of 21 December 2001, On Privatisation of State and Municipal Property, a single executive body of an open shareholding company included in the list of strategic shareholding companies, is not entitled to conclude deals connected with the carving out of shares included in the company’s equity capital, as well as deals entailing the possibility of a carve-out, without the agreement of the Government or of an authorised executive body.
The Directive signed expresses agreement on a carve-out of the Rosneft Oil Company’s shares in the possession of Rosneftegaz in the amount of 2,066,727,473 (19.5 percent of shares) at a price not below the market price determined by an independent assessor but not below the 2006 IPO price.
The implementation of the adopted decisions will
ensure further improvement of the management system for integrated structures,
and will provide additional revenue to the federal budget. The present
instruction does not set the deadlines for the implementation of these
strategic decisions.