Rustem Khamitov: Transfer of stake in Bashneft to Bashkortostan property is a historic event for our republic

UFA, 23 June 2015. /Bashinform News Agency, Iliya Spiridonov/. Transferring a 25 percent plus one share stake in Bashneft to the ownership of Bashkortostan - is a historic event for the republic in terms of restoration of historical justice and obtaining new financial resources. The Head of Bashkortostan Rustem Khamitov said that in an interview with reporters, commenting on the corresponding decree signed by the Russian President Vladimir Putin.

“I would like to express my immense gratitude to the President of our country Vladimir Putin for his thorough investigation into this situation and immediate response to our request for the transfer of a part of stake in Bashneft to the property of the republic. Of course, it inspires us in every sense of the word,” the Head of the Republic said.

The Head of the Republic said that the market value of the stake received by Bashkortostan was about 90 billion rubles.

According to Rustem Khamitov, receiving the stake in Bashneft opens new opportunities for the region.

“We will be able to direct more resources to address a variety of social problems. This is connected with development of the territories where the oil is extracted (I mean our republic), and with development of social benefits received by population of our republic. This relates to issues of culture, science, education and sports. In short, it includes the whole variety of issues and tasks that the republican authorities face today. With the signing of the Decree by the President of the Russian Federation, our republic receives new opportunities in terms of financing large and super-large objects and solving social problems”, the Head of the Region underlined.

Rustem Khamitov also shared his plans for the use of dividends for 2014, which the republic will receive after the annual meeting of shareholders.

“As it has already been announced that the dividend amount will be about 20 billion rubles for the entire company, then a quarter will constitute 5 billion rubles. And we have already a preliminary plan of spending these resources. The lion's share of these funds will be directed to construction of schools, hospitals, kindergartens, roads, water pipes in the areas where we have poor water supply. A small portion of these resources will be spent to support sports teams” the Head of the Region said.

PJSOC Bashneft is a vertically integrated company that operates in more than 20 regions of Russia and abroad. In 2014 the company ranked sixth in terms of oil production in Russia (17.8 million tons) and fourth in terms of crude oil refining among Russian oil companies (21.7 million tons). Bashneft accounts for 3.4 percent of the total oil extraction and 7.6 percent of total oil refining in Russia. It has over 170 fields in commercial production.