MOSCOW (Reuters) - The Russian government has completed the sale of a controlling stake in mid-sized oil producer Bashneft (BANE.MM) to the Kremlin-owned Rosneft (ROSN.MM) for 329.69 billion roubles ($5.30 billion), the economy ministry said on Wednesday.
The sale is a part of a government privatization drive aimed at narrowing the state budget deficit.
The ministry, citing the minister, Alexei Ulyukayev, said Rosneft’s bid was higher than a valuation of between 297 billion roubles and 315 billion roubles, while the unidentified second bidder offered a lower bid.
President Vladimir Putin said earlier on Wednesday that Russia’s privatization drive will be more efficient after Rosneft purchases the state’s stake in Bashneft.
Reporting by Vladimir Soldatkin; Editing by Adrian Croft