Permission Granted for Baumgertner Meeting

MINSK — Russian diplomats in Belarus said Wednesday that they have been allowed to meet with the detained head of Russian potash giant Uralkali, who is facing charges of fraud that Belarus estimates has cost it around $100 million.

The Russian Embassy said it received permission to meet with Vladislav Baumgertner in a fax dated November 11, one day ahead of Moscow's second request for its diplomats to see the businessman.

Baumgertner was detained in August in the capital of Belarus, Minsk, after Uralkali unexpectedly withdrew from a cooperation agreement with its Belarussian counterpart, causing a steep drop in prices and sparking a political dispute.

He has been charged with abusing his position at his company, an offense punishable by up to 10 years in prison, and is currently being held under house arrest.

Baumgertner also currently faces criminal charges in Russia that were filed after his arrest in Belarus.

Political commentators have suggested the Russian investigation could be an attempt by Moscow to get Baumgertner back home before dropping the charges against him.

Belarussian President Alexander Lukashenko has said Baumgertner could be extradited to Russia provided that he face criminal charges and that financial damages be covered.

Uralkali has claimed that Belarussian allegations against Baumgertner are politically motivated.

RIA Novosti

Shuvalov Considers Delaying Rosneft Sale Until 2016

The government is considering delaying the privatization of oil giant Rosneft until 2016 or later as it seeks to maximize the price it can secure.

Rosneft is scheduled to be privatized in 2015, and a postponement could put a dent in projected government spending.
"We will have to discuss the best way to privatize and the timing with our partners," First Deputy Prime Minister Igor Shuvalov said Tuesday, Prime reported. "Previously we thought that it might be 2015, but now experts are saying that it may be better to postpone it until 2016."

An aide to Shuvalov told Vedomosti that the final decision on the sale would depend on market conditions because the government did not want to sell to "just anyone" on the cheap.
Among the main potential bidders is Britain's BP, whose stake of 19.75 percent in Rosneft makes it the biggest shareholder after the government.
"We would be happy if they participate in future negotiations for the sale of the government's stake," Shuvalov said.
The value of Roneft is currently a relatively low $78.5 billion, while the company has yet to reap any synergies from its acquisition of TNK-BP in March, Vedomosti said. Furthermore, Rosenft is rapidly accumulating debt, including the $45.1 billion in cash that it paid for TNK-BP, the acquisition of Itera for $3.1 billion in July and plans to buy 19.6 percent of Severenergia for $1.8 billion by the end of the year. Rosneft's net debt has ballooned by 3.2 times in the first three quarters of 2013 to 1.9 trillion rubles ($57.75 billion).
If the privatization of Rosneft is delayed, the Finance Ministry may face a shortfall of 423.5 billion rubles ($13 billion) in the draft budget for 2014-16. The budget envisages raising this amount from the sale of 19.5 percent minus one share of Rosneft.

The Moscow Times