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. Last Updated: 07/27/2016

Rosneft Valuation Favors Capital Raise

Management at Russia's state oil company Rosneft has recommended raising the company's authorized capital to 4.8 trillion rubles ($814 million) after revaluing the worth of its subsidiaries, a company official said Wednesday.

The valuation -- an increase from a previous assessment of 90.2 billion rubles -- was submitted in a packet of financial documents to the government as it prepares for Rosneft's sale next year, the company's first vice president, Grigory Napalov, said at a news conference.

Oil analysts were divided on how the valuation will be used. One said the $814 million figure could be used as a rough benchmark to set starting prices in the privatization sale, but the auction is expected to fetch up to twice that amount.

United Financial Group analyst Mikhail Surtsukov said he thought Rosneft management had conducted the revaluation to stall the privatization process.

But Napalov refuted that argument, saying the valuation had taken only three days.