“Could the case of the Head of Ministry of Economic Development influence the process of privatization of “Rosneft” block of shares”. Samvel Karakhanyan's comments for BFM.ru

Mass media

16 November 2016

“Could the case of the Head of Ministry of Economic Development influence the process of privatization of “Rosneft” block of shares”. Samvel Karakhanyan's comments for BFM.ru

Some experts think that due to the recent events the authorities can take time out, others don't see obstacles.

The Government has recently approved the directive, according to which 19.5% of “Rosneft” to be sold until 5 December. However, something unexpected happened - was arrested and sent to house arrest the Minister of Economy Alexey Ulyukaev.

Investigative authorities believe that he demanded $2 million for the acceptance of the buying of “Bashneft” by Rosneft”. What could affect Alexey Ulyukaev during privatization? And how will be the selling of “Rosneft"?

Theoretically, Alexey Ulyukaev, of course, could affect the privatization of “Bashneft”. It is enough just to recall that the state owns its assets through the Federal Property Management Agency. It is in the custody of the Ministry of Economic Development, and its head has the deputy economy minister status, ie, direct subordinate of Ulyukaev.

From a bureaucratic point of view it looked like that: Minister of Economy prepared a positive opinion on the sale of “Bashneft” for “Rosneft”. Then the government recommended “Rosneft” to buy the asset. As, for a few days before the deal, said Ulyukaev, “Rosneft” has offered the most money, more than others and more assessed “Bashneft”. That is the conclusion of the investigative authorities considers corruption. So, in theory, it is possible to reconsider and, for example, to cancel the privatization. Another thing is that it doesn’t happen. The Investigative Committee has no claims to this deal. And the money that has been paid to the budget – whether should the be returned to “Rosneft”. The opinion of the Samvel Karakhanyan, the president of the Barshchevsky & Partners Moscow bar association:

“The prosecution of the Investigative Committee, the Minister Ulyukaev received a bribe - it doesn’t mean that the directives and relevant conclusions unreliable. In this particular case, as I understand it, the question is not about the reliability and doubt of the veracity of this conclusion. The question is that to reach such a conclusion, according to the investigative authorities, Ulyukaev asked for appropriate remuneration. From my point of view, it is unlikely to cancel the conclusions and the directives”.

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