Russia sells part of its stake in Bashneft - IFX

The Russian government has announced plans to sell a portion of its stake in Bashneft, a major oil producer based in Bashkortostan. Currently, the government holds a 57.7% ownership interest in Bashneft through Rosneft, which acquired a controlling stake in the company in 2014 following legal and regulatory actions against previous private owners. The proposed sale is part of broader efforts to advance privatization initiatives within the Russian energy sector.

Bashneft, which reported revenue of $11.6 billion in 2021, operates 140 oil and natural gas fields and produces approximately 16 million tonnes of oil annually. The company also owns three refineries in Ufa with a combined refining capacity of 820,000 barrels per day. Its financial performance in recent years has demonstrated stability, with net income of $1.15 billion in 2021.

The government’s decision to sell part of its stake in Bashneft aligns with statements by President Vladimir Putin, who previously highlighted the Rosneft acquisition of Bashneft as a catalyst for further privatization efforts. While specific terms of the upcoming sale have not yet been disclosed, the move is expected to attract both domestic and international investors, particularly as Bashneft is listed on the Moscow Exchange under the ticker symbol BANE.