Related Articles
Forward article link
Share PDF with colleagues

Russian farce

Russia’s planned privatisation of Bashneft is off, for now, after Rosneft made a mockery of the process

When is a privatisation not a privatisation? When the state tries to buy the asset being sold by the state. That’s what Rosneft, which controls about 38% of Russia’s crude oil output and is itself 70% owned by the state, tried to do when it officially applied on 26 July to participate in the sale of Bashneft, the crown jewel in the state’s asset sell-off. An acquisition of Bashneft would have taken Rosneft’s market share to about 41% and strengthened the state’s role in the industry. To most observers that’s the opposite purpose of privatisation. Now the whole thing has been postponed, after the government ruled that its oil champion, Rosneft, couldn’t take part. The proposed sale, in turn

Also in this section
Pemex showing signs of life
14 June 2017
Austerity and higher prices have helped put the state firm back in the black. Deeper reforms are still needed
ExxonMobil back to basics
31 May 2017
The world's biggest oil firm is relying on science, technology and, increasingly, its domestic base to insulate it from weaker oil prices
Dana Gas - 'We went in with our eyes open'
24 May 2017
Dana Gas has struggled to get paid for its work. Yet its chief executive still thinks gas in the Middle East will thrive