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. Last Updated: 07/27/2016

State Set To Sell Eastern

Russia will sell 34 percent of Eastern Oil Co. at a starting price of 601.76 billion rubles ($103 million) in an auction ending Nov. 19, Privatization Minister Maxim Boiko said Monday, adding that a decision on whether foreigners could participate had not been made.

He said at a news conference the starting price for the single block of shares would be 4,000 rubles for each of the 150.44 million shares and the buyers must invest $90 million within nine months and pay company debts of 530 billion rubles.

But Boiko gave a higher figure for total projected revenues than the approximately 1.7 trillion rubles of combined starting price, debt payment and investment condition.

"The discussion is of different government budgets receiving about 2 trillion rubles. The total sum will be 3 trillion [rubles]," Boiko said.

He said bids would be accepted until Nov. 19 and results would be published by Nov. 24. He gave no indication when a decision on foreign participation would be taken.

Eastern Oil Co. owns 38 percent of Tomskneft, including 51 percent of voting shares, and bids are due by Nov. 6 in a separate auction for 50 percent less one share of Eastern Oil, which is likely to produce a number of winners. Tomskneft had not traded Monday after closing at $18.50 on Friday on the Russian Trading System.