: :inin Kyiv (EET)

China`s CNPC interested in building up stake in Russia`s Rosneft

China National Petroleum Corporation (CNPC) is interested in building up a stake in Russia`s state-run Rosneft oil company if it gets the right to participate in the Russian company`s management, according to Russian news agency RBC.
”CNPC is interested in building up its stake in Rosneft provided [we acquire the right to] participate in management of the company,” RBC quoted CNPC Chairman Wang Yilin as saying.
”In case of growth of our share, we would like to get the right to participate in management of the company in full concordance with the purchased stake. Again we expect the format of participation and the scope of authority to be reflected in Rosneft`s proposal,” Wang said.
According to CNPC`s chairman, the Chinese company will consider in detail the proposal for participation in Rosneft`s privatization once it is presented by the Russian authorities. CNPC considers its partnership with Rosneft to be of strategic importance and sees it as a significant element of cooperation between the two countries, according to Wang.
CNPC became a shareholder of Rosneft in the course of the Russian company`s initial public offering (IPO) in summer 2006. CNPC bought $500 million in Rosneft`s shares, which was 0.62%.
The Russian government plans to sell a 19.5% stake in Rosneft by the end of 2016. Russian Economic Development Minister Alexei Ulyukayev said on May 24 that it would be impossible to fulfill the federal budget in 2016 with a 3% deficit without this transaction. The consultant on the deal is Italian bank Intesa Sanpaolo.
According to Andrei Belousov, the economic aide to the Russian President and the chairman of the Board of Director of Rosneft, the company`s main privatization option is the sale of the 19.5% stake to a strategic investor, which would ensure the highest premium.
CNPC`s Russian office has not provided any comments yet.


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