Russia Plans to Sell Sovkomflot Shares in New York

Russia hopes to place shares of shipping company Sovkomflot in New York as part of its privatisation plans, a deputy minister of transport told reporters on Friday, a move which could face resistance due to confrontation with the West over Moscow's role in Ukraine.

The government plans to raise 200 billion roubles ($3.8 bln) by selling stakes in state companies this year. The plans for the year involved the sale of shares in top oil producer Rosneft , Rostelecom, Sovkomflot and sea port Novorossiisk.

Viktor Olersky said that Sovkomflot's share placement may be carried out next spring on a New York stock exchange.

The plans, however, could be hampered by Russia's standoff with the West.

Sovkomflot saw its net income rise to $63 million in the first half of the year due to increasing demand for transportation of natural gas and demand for its services in offshore projects, after suffering a loss of $39 million in 2013.

Sovkomflot, which operates 153 ships, is wholly-owned by the state. The government has sought to sell a stake in the company for several years, but its plans for wider privatisation have been curbed by a sluggish stock market.

Reporting by Gleb Stolyarov; writing by Vladimir Soldatkin