Official website of the President of Russia

Transcripts   /

President Vladimir Putin: Today we will discuss the state and prospect of development of pipeline transportation in the country. I hope that the departments have held sufficiently serious and thorough consultations, and I expect substantial and effective discussion today. But first of all, I would like to ask German Oskarovich Gref, the Minister for the Economy, to say a few words and comment on the deal made on the state’s share holding in LUKoil.

German Gref: Last week a deal was made on selling the remaining share holding of the state in LUKoil. With an initial cost of $29.80 per share, the final sale price was $30.80 per share, and the cost of the deal was just over $2 million. The share holding in LUKoil was bought by the American company Conoco-Philips, and before the end of the year the investor must fully transfer this money to the budget of the Russian Federation.

The shares cost twice as much as they did in the previous deal – we floated the LUKoil share holding on the London stock market at $15 about one a half years ago. This is of course connected with the increase in the market price of LUKoil shares.

This is one of the most successful deals we have made, completely at market price. The market price on that day closed at $30.90 per share. This is why we think that it was one of the most successful investment deals that could be made – of course, thanks to the fact that there were very powerful and interested buyers.

President Vladimir Putin: I think that this is not so much connected to the growth of market prices – growth as such – as with problems of energy in the world as a whole and with prospects of development in Russian energy, above all in the oil sphere. LUKoil, together with its partners, is developing successfully, dynamically, and has excellent chances to increase the volumes of its activity, given that this deal was made, and made quite successfully, as you assess it. I think that the Government should provide assistance in implementing plans formulated by companies, and also in coordination with the Government of the Russian Federation.