Russian state-controlled Rosneft has applied to take part in bidding for the state’s 50% stake in regional oil producer Bashneft, despite objections from top governmental officials.

A Rosneft spokesman confirmed the bid submission, but said the company would await orders from its main shareholder on how to proceed.

The government 70% stake in Rosneft is held by investment vehicle Rosneftegaz.

Though the state is the sole shareholder in Rosneftegaz, the company is de facto managed by Rosneft representatives.

Deputy Prime Minister in charge for energy issues, Arkady Dvorkovich, said last week that because Rosneft is government-controlled, it cannot participate in Bashneft’s privatisation.

Economic