Russia to Partially Privatize Rosneft, Aiming to Raise US$11 Billion

Rosneft office

As part of the economic development plan for 2016, the Russian government is planning to partially privatize its flagship oil producer, Rosneft. Russia is hoping to get more than US$11 billion from the sale of a minority stake of Rosneft before the end of the year. This will help plug financial deficits in the Russian economy caused due to low crude prices. However, sanctions imposed on Moscow over its actions in Ukraine and the cautious approach of investors in investing money in Russia can prove to be detrimental for the Russian market. Added to this is the volatile nature of the commodity market. Rosneft is hoping to repeat the success it had a decade ago, when it managed to raise US$11 billion from its initial share offering.

Read more: http://www.researz.com/russia-partially-privatize-rosneft-aiming-raise-us11-billion

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