Rosmaino prepares sale of Sovcomflot stake to cover Russian budget deficit

Privatisation of stake to finance budget

The Russian state is preparing to sell a package of shares in one of its largest companies, Sovcomflot. This initiative is aimed at finding sources of financing amid a significant budget deficit. According to The Moscow Times, the current deficit stands at 7.3 trillion rubles, with an additional "hole" of over 15 trillion rubles forecast for the 2027–2029 period.

Deal details and scale of sale

Rosmaino has officially announced the start of the selection of trade organizers for the sale of 7.8% of Sovcomflot shares. This stake corresponds to approximately one-tenth of the state package, which totals 82.8%. Before the full-scale invasion, the company controlled the world's largest fleet of Aframax-class mid-size tankers, as well as 10 icebreakers.

If the deal is completed, the Russian Ministry of Finance may receive around 15 billion rubles, although the actual proceeds may turn out to be lower. The funds are planned to be directed to the federal budget, where an increase in military spending has already been factored in. Next year, they will reach 17.1 trillion rubles, which would account for 35% of all state expenditures. This represents a one-third increase compared to the 2026 budget.

Deficit forecasts and tax burden

The Russian Ministry of Finance forecasts a budget deficit of 5.4 trillion rubles for next year, despite taxes having been raised for the third time in three years. A deficit of 5.1 trillion rubles is expected for 2028, and 5.2 trillion rubles for 2029.

Possible scenarios for share sale

Analysts suggest that the sale may take place within a non-public deal, where the share package will be sold in advance to a selected investor off-exchange. If the shares are listed on the stock exchange, the market will find it difficult to absorb such a volume, as 16% of shares are currently in circulation, and a new sale would increase this proportion by a factor of 1.5.

Previous privatisation attempts

Similar plans have been noted before. In May, Russian authorities announced the sale of 25% of Aeroflot shares in the autumn, but a stock market crash forced them to postpone this idea. From January to July, the airline's shares fell by more than half. They are currently trading at approximately 37 rubles each, which is 35% lower than the beginning-of-year figures.