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. Last Updated: 07/27/2016

Report: Yukos May Get Small Share in Rosneft

VedomostiSergei Bogdanchikov
Minority shareholders in Rosneft subsidiaries could end up controlling 18.4 percent of the oil major even before it holds an initial public offering next year, Vedomosti reported on Tuesday, citing a valuation report prepared by Deloitte consultancy.

Before it can start trading, state-owned Rosneft must first bring its dozen daughter firms under one roof, buying out their minority shareholders with shares in the vertically-integrated company.

As a result, a tenth of Rosneft shares could conceivably fall into the hands of Yukos, which still holds preferred shares in its key production unit Yuganskneftegaz.

Rosneft snapped up the 1 million-barrels-per-day unit for $9.4 billion in December after the government seized and auctioned Yugansk to recoup a multibillion-dollar back tax bill.

However, 23.2 percent of Yugansk held by Yukos in preferred shares were not part of the sale, and Deloitte has valued this stake at $7.6 billion, Vedomosti said.

Tentatively slated for late 2006, Rosneft's IPO is designed to raise funds to pay back the $7.5 billion the state borrowed from Western banks to buy a controlling stake in Gazprom. A precondition for liberalizing Gazprom's share trading system -- which prevents foreigners from owning domestic shares -- is that the state owns a majority stake in the gas giant.

The government is considering launching the Rosneft IPO simultaneously in London and Moscow, Economic Development and Trade Minister German Gref said Tuesday, Bloomberg reported.

It remains unclear whether or not Yugansk will be integrated into Rosneft to begin with. Rosneft president Sergei Bogdanchikov has said that he expects minority shareholders' stakes in the vertically integrated company not to exceed 7 or 8 percent.

Dmitry Lukashov, oil and gas analyst at Aton brokerage, was skeptical about Yukos' chances to get a sizeable, if any, stake in vertically integrated Rosneft. "I doubt that Rosneft is going to be paying for that particular stake," he said.

Both Deloitte and Rosneft refused to comment on the Vedomosti report Tuesday.