Russia Plans to Sell Part of Its Stake in Sovcomflot
The sale could raise about $183 million as Russia faces a projected $89.2 billion budget deficit this year, analysts said.
- On Wednesday, November 4, The Moscow Times reported that Russia's Federal Agency for State Property Management is preparing to sell a 7.8% stake in Sovcomflot to cover widening wartime budget deficits.
- Moscow faces an estimated budget deficit of roughly $89.2 billion this year, while projected shortfalls for 2027 through 2029 exceed $183 billion combined, driven by declining revenue and military spending in Ukraine.
- The proposed sale could raise around $183 million, covering less than 0.1% of those projected three-year deficits, while Russia plans to spend roughly $209 billion on defense next year, equivalent to around 35% of federal expenditure.
- Analysts at Vector Capital suggested the Sovcomflot sale could occur through a private transaction rather than a public offering, as Freedom Global analyst Vladimir Chernov noted a discount to market price may be required.
- The Russian Finance Ministry projects a deficit of about $66 billion next year, as persistent financial pressure led the Central Bank to reduce monetary gold holdings for the tenth consecutive month to cover budget gaps.
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Russia has begun a procedure to sell 7.8% of the shares of Sovcomflot, the country’s largest shipping company and the main operator of tankers in Russia’s “shadow fleet.” The state-owned Rosimushchestvo has announced the selection of organizers for the deal, The Moscow Times reports. The state owns 82.8% of the company’s capital, meaning the proposed package represents approximately one-tenth of the state’s stake. The proceeds are expected to go…
Russia Scrapes for War Cash by Selling Part of Its Shadow Fleet Tanker Giant for $183 Million
Russia is preparing one of its most significant state-asset sales in years, putting a stake in shipping giant Sovcomflot on the market as Moscow searches for cash to cover widening wartime budget deficits, The Moscow Times reported on November 4.
RUSSIA is selling a 7.8 percent stake in shipping giant Sovkomflot.
Russia to sell part of its stake in shipping group Sovcomflot to raise funds for stretched budget
Russia plans to sell a 7.8% stake in state-controlled shipping giant Sovcomflot as it seeks additional sources to cover its budget deficit in the fifth year of the war in Ukraine.
The estate has announced the start of the selection of the owner of the sale on behalf of the Russian Federation of the Sovcomflot PAO stock in the amount of 7.8 per cent less one share.
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