Russia eyes full VTB, Rosneft privatisation by 2017

Russia plans to step up its privatisation programme, disposing by 2017 of stakes in the country's No 2 lender VTB , leading oil company Rosneft and power group InterRAO, a copy of the plans obtained by Reuters showed.

First Deputy Prime Minister Igor Shuvalov has submitted a new list of companies to be privatised to President Dmitry Medvedev, sources in the government told Reuters.

Russia seeks to raise $10 billion this year and $15bn next year by selling stakes in state companies.

The deadline to decide on an accelerated and more ambitious privatisation programme is August 1.

A copy of Shuvalov's list obtained by Reuters showed that it envisages the full privatisation of the government's 75.5 per cent stake in VTB, the 75.16 per cent stake in Rosneft as well as 14.79 per cent of InterRAO.

Previously the government had been planning to sell 35.5 per cent in VTB in 2011-2013, having sold 10 per cent in February. Russia's share in Rosneft had been set to be reduced to a controlling stake prior to its full privatisation.

Rosneft's Chairman Alexander Nekipelov told Reuters in June the assets of the country's biggest oil producer are too strategic for the state to give up its ownership in the company.

The new privatisation draft also envisages selling 60 per cent in the country's biggest hydroelectric power producer RusHydro along with the privatisation of diamond miner Alrosa, in which the Russian Federation holds 50.9 per cent, while the Sakha Republic (Yakutia) owns 32 per cent and municipalities in the remote region have 8 per cent.

Russia had initially planned to reduce its stake in RusHydro and Alrosa to 50 per cent plus one share by 2013.

Shipping company Sovkomflot, Moscow's Sheremetyevo airport, and oil firm Zarubezhneft are on the list for 100-per cent privatisation.

For a list of the main companies on the privatisation list please see