October 30, 2012 / 10:21 AM / 8 years ago

Rosneft's stake sale to BP part of privatization: minister

A logo of Russian state oil firm Rosneft is seen at its office in Moscow, October 18, 2012. REUTERS/Maxim Shemetov

PERM, Russia (Reuters) - Russia will sell a 5.66 percent stake in Rosneft (ROSN.MM) to British major BP (BP.L) next year but will refrain from a wider privatization of the country’s largest oil company in 2013, Energy Minister Alexander Novak said in an interview.

“As far as I know, it (the stake sale) will be as a part of the sale to BP, because in fact it is also a privatization,” he said on the sidelines of a governmental meeting.

Rosneft is in the process of buying rival producer TNK-BP TNBP.MM from British major BP (BP.L) and Russia’s AAR consortium in a $55 billion deal.

As part of the proposed buyout of BP’s stake in TNK-BP, the British major will plough back $4.8 billion of the proceeds into buying a 5.66 percent stake in Rosneft from state energy holding company Rosneftegaz.

Russian state privatization plan calls for selling stakes in a wide range of companies and banks, aimed at raising funds for budget and improve competitiveness.

The state wants Rosneftegaz to start cutting its 75.2 percent stake in the oil company from 2013, with a complete sale by 2016.

Rosneft is already listed and sold shares worth $10 billion in an initial public offering in 2006. (Reporting by Olesya Astakhova; Writing by Katya Golubkova; Editing by Megan Davies and Jane Baird)

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