The government of Russia’s republic of Bashkortostan plans to sell the remaining portion of its stake in oil producer Bashneft to state-controlled Rosneft to help plug a budget shortfall, regional head Radiy Khabirov said Wednesday.
The planned sale comes as the oil-producing region faces strained finances and repeated Ukrainian drone attacks on Bashneft’s refining and petrochemical complex in the regional capital Ufa. The sprawling facility, one of Russia’s largest, has been targeted three times in August alone.
“We have a hole in the budget,” Khabirov told reporters. “When there is not enough money, the natural thing to do is sell what you own, since borrowing on the market is expensive.”
Bashkortostan recorded a budget deficit of 17.1 billion rubles ($205.2 million) in the first half of 2026, equivalent to 70.7% of its projected full-year deficit, according to the regional Finance Ministry.
The regional government announced plans in December to privatize a 6.36% stake in Bashneft. It sold the first portion of that stake to Rosneft in June but did not disclose its size.
