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Share Price: 467.45
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Change: 1.10 (0.24%)
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Russia holds off raking in profit from state energy holding

Fri, 11th Apr 2014 07:10

MOSCOW/WASHINGTON, April 11 (Reuters) - The Russiangovernment is not planning to take almost all the sizeableprofits earned by state energy holding Rosneftegaz as dividendsin 2013, Finance Minister Anton Siluanov said, contradicting amedia report on Friday.

Business daily Vedomosti reported on Friday that thegovernment wants to take 95 percent of Rosneftegaz's 2013 profitas dividends, a plan opposed by the holding's chairman IgorSechin.

Speaking on the sidelines of the International Monetary Fundand World Bank meeting in Washington, Siluanov told reportersthe issue had been discussed, but it was off the table for now.

"As far as the transfer (to the budget) of up to 95 percentof Rosneftegaz's profit is concerned, no such measures areforeseen in the budget and we're not examining any suchproposals," he said.

The Russian government needs extra funds to shore up thebudget and secure the financing of Crimea, a region annexed byRussia from Ukraine in March.

Rosneftegaz controls 69.5 percent in top oil producerRosneft and almost 11 percent in the world's largestnatural gas producer Gazprom.

Vedomosti, citing two unnamed sources, said that Sechin hasvoiced his opposition to the plan, agreeing only to the paymentof 25 percent of profit as dividends since the holding wants tosave cash for future acquisitions.

Rosneftegaz made $4.87 billion from BP's acquisitionof Rosneft shares last year as part of a deal to sellAnglo-Russian TNK-BP oil firm to the Russian oil producer. Italso secured 78.2 billion roubles ($2.2 billion) from Gazprom'sand Rosneft's dividend, Vedomosti said, while net profit came inat around 185.3 billion roubles.

($1 = 35.5008 Russian Roubles) (Reporting by Vladimir Soldatkin in Moscow and Lidia Kelly inWashington; editing by Keiron Henderson)

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