By Denis Dyomkin and Lidia Kelly (Reuters) The Kremlin is contemplating decreasing state stakes in transport agency Sovkomflot in addition to the oil firm Rosneft and state-controlled financial institution VTB as a part of the nation’s new privatisation drive.

With the nation dealing with a second straight 12 months of recession and with sanctions impeding Western funding, Russian oligarchs are the most certainly consumers in firms that President Vladimir Putin desires to promote to spice up state coffers.

Until now, they’ve stated little on the difficulty, with sources solely saying that oil main Lukoil has advised the Russian authorities it desires to purchase smaller rival Bashneft, one of many companies slated for the privatisation.

Andrei Kostin, VTB’s chief government officer, stated on Saturday present market circumstances don’t assist a sale.

Falling oil costs and sanctions imposed in 2014 for Moscow’s position within the Ukraine disaster has slashed the worth of Russian property.

“If sanctions are lifted, for example … then definitely our price will be higher,” Kostin advised the state-run Rossiya-24 tv channel.

“And that is also a very important factor that needs to be looked into, to wait until the summer to see if there are signals that there could be such move (lifting sanctions).”

He stated if the European Union and the United States have been to carry their restrictions, shares of the businesses launched from sanctions might rise 50 %.

Billionaire Viktor Vekselberg, , one in every of Russia’s richest males with property starting from development to aluminium, stated nevertheless, that present costs for Russian property are “reasonable”.

Kostin stated it was a false impression that oligarchs are lining as much as snap up Russian property cheaply.

“The task to sell all of this is quite complicated and it is some sort of an illusion that there are some people who would buy right now, today,” he stated.

“The economic situation is very difficult, the outlook also anything but simple, that’s why the sale will definitely be transparent and honest. To find a buyer today is not easy.”

Sovkomflot is a Russian maritime transport firm specializing in petroleum and LNG transport, a 100% state-owned company based in 1995. Since December 5, 2006, its headquarters are situated in Saint Petersburg. It is headed by Director General Sergei Frank. In 2007-2008 Sovcomflot absorbed the property of state-owned, Novorossiysk-based Novoship and thus grew to become the biggest transport firm in Russia.

(Reporting by Denis Dyomkin and Lidia Kelly; Writing by Lidia Kelly; Editing by Toby Chopra and David Evans)

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