Russia plans to sell a 7.8 per cent 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 state property fund said on Tuesday it has begun a selection process to organise the sale of 7.8 per cent, minus one share, in the company. Applicants will be required to submit a report on "possible deal structures that would maximise cash proceeds to the federal budget".
Russia currently holds 82.8 per cent of Sovcomflot, having sold 17.2 per cent through an initial public offering in 2020.
The additional sale would leave the state with 75 per cent plus one share of the strategically important company, which plays a key role in exporting Russian oil and gas, including LNG shipments from Arctic projects.
By selling the stake Russia could raise about RUB15 billion ($183.78 million), based on the company's current share price on the Moscow Exchange.
In the fifth year of the Ukraine conflict, Russia is seeking additional sources of budget revenue on top of tax rises it has already introduced, to cope with rising military spending.
According to Finance Ministry estimates, the budget deficit is expected to more than double from the initial plan this year, to 3.2 per cent of GDP.
In addition to Sovcomflot, Russia is also planning to sell a 20 per cent stake in Novorossiysk Commercial Sea Port (NMTP) and a 23.8 per cent stake in flag carrier Aeroflot.
(Reporting by Gleb Stolyarov; Editing by Mark Trevelyan)