Russian president Vladimir Putin is not yet ready for a full-scale privatization drive despite the sale of the government's stake in oil firm Bashneft to the country's largest producer Rosneft, according to an analyst.
Rosneft paid 329.69 billion rubles ($5.30 billion) for a 50.08 percent stake in Bashneft. Putin hailed the deal as one that could give a boost to the country's privatization drive.
"The main thing is that we don't stop the privatization process," Putin said at the VTB Bank Russia Calling investment summit on Wednesday, adding that the deal will help obtain "maximum gain" from the point of view of the budget and fiscal interests.
But many have questioned if this is real privatization given that Rosneft, the buyer of the stake, is backed by the Kremlin. Analysts said that Putin knows that it wasn't "real privatization" and are not convinced that the country will see a large drive in this area.