War deficit forces Russia into partial sale of Sovcomflot stake

By selling the stake Russia could raise about RUB15 billion ($183.78 million), based on the company’s current share price on the Moscow Exchange.

In the fifth year of the Ukraine conflict, Russia is seeking additional sources of budget revenue on top of tax rises it has already introduced, to cope with rising military spending.

According to Finance Ministry estimates, the budget deficit is expected to more than double from the initial plan this year, to 3.2 per cent of GDP.

In addition to Sovcomflot, Russia is also planning to sell a 20 per cent stake in Novorossiysk Commercial Sea Port (NMTP) and a 23.8 per cent stake in flag carrier Aeroflot.

(Reporting by Gleb Stolyarov; Editing by Mark Trevelyan)