Russia Plans to Sell Sovkomflot Shares in New York

Maritime Activity Reports, Inc.

December 5, 2014

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

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