Deals
Rosneft CEO Sechin Said to Pitch Putin $16 Billion Sale Deal
- Plan calls for Rosneft to pay state $5 billion for Bashneft
- Then funds, traders would buy 19% of Rosneft for $11 billion
Rosneft CEO Said to Pitch Putin on Bashneft Deal
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Rosneft PJSC chief Igor Sechin, not taking no for an answer, has come up with a proposal to expand his energy empire while helping critics in the Russian government meet their goal of reducing the widest budget deficit in six years.
Sechin, a longtime ally of President Vladimir Putin, has asked the government to let state-run Rosneft buy its controlling stake in smaller oil producer Bashneft PJSC for $5 billion in cash, a premium to the market, according to two senior officials. Russia could then earn another $11 billion by proceeding with its delayed sale of 19.5 percent of Rosneft itself, generating a $16 billion windfall that would cut this year’s projected deficit in half, they said.