Effects of the British decision to leave the European Union (EU) may affect the timing of the privatization of Russia's Alrosa, said bank Sberbank CIB, which organizes the sale of shares.
Sale of 10.9 percent stake in diamond miner, scheduled for July, is expected to bring into the treasury of Russia $ 934 million (60 billion rubles).
"Theoretically, the UK out of the EU may affect the timing of privatization, if market conditions deteriorate - Sberbank said in a statement to Rapaport News. - Until now, there were no changes made in the plans for a deal with ALROSA in July. There is considerable demand from both Russian and foreign investors. "
The result of the referendum of the British withdrawal from the EU, known as Brexit, caused turmoil in European and world markets, and the global stock market has lost about 3.6 trillion dollars in market value since the decision, Bloomberg reported on Tuesday, June 28th.
FTSE 100 index fell 2.7% at the time of writing from that time on Thursday evening (23 June) there were first indications of the outcome of the referendum, according to Yahoo Finance. The pound fell to a 30-year low against the dollar, while the euro fell by about 3% against the US currency. Gold prices rose as demand for safe-haven assets has increased.
The Russian Economy Minister Aleksey Ulyukaev said last week he did not consider that the yield of the UK from the EU will affect the privatization program in Russia, Reuters reported with reference to Russian news agencies.
The Russian government also plans to sell part of its shares in "Rosneft" and "Bashneft" companies, as well as in VTB Bank.
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In the course of the privatization of Alrosa will sell the package size of less than 19% share of the company, said Deputy Finance Minister Alexei Moiseev reporters on Friday.
"The sale is planned, the volume will be significantly less than 19%. Our position is that it is necessary to sell on the stock exchange, the Moscow, of course. And now, the preparatory work, I would like to finish it as soon as possible ", - said Moiseev.
He noted that now is considered any possibility of privatization. "Of course, we would like to carry out the privatization of Alrosa, of course, completely. We start from a small amount of the privatization of Alrosa, so that in any case the government with Yakutia remains much more a controlling stake in the company ", - said Deputy Minister of Finance.
He said that he wanted to refute the view that the government is ready to sell shares "to a level that will reduce the share of the Russian Federation and Yakutia in the company to 50% and one share."
Earlier on Friday it became known that the Federal Property Management Agency started to prepare the privatization of up to 18.9% of ALROSA's shares.
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