RF Government issues Decree on sale of 19.5% of Rosneft shares

Russian Government has approved the sale of 19.5% of Rosneft shares owned by Rosneftegaz. Decree No 2358-Russia was signed on November 27, 2014.

According to the Presidential Decree dated December 7, 2004 (No1502) Government Decree dated December 12, 2004 (No 1590-Russia) main shareholder of Rosneft (69.5 percent) is state-owned Rosneftegaz.

Forecast plan (program) of the privatization of Federal property approved by the Federal Government on July 1, 2013 (Resolution No 1111-r) provides for the reduction of Rosneftegaz share in the authorized capital of Rosneft to 50 % plus 1 share.

The newly signed Decree means the approval of carving out of Rosneft shares from Rosneftegaz in the amount of up to 2 066 727 473 shares (19.5%) at a price no lower than the initial public offering in July 2006.

The Decree does not set forth any terms for taking principal decisions.