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Russia to sell part of its stake in shipping group Sovcomflot to raise funds for stretched budget - Finance news and analysis from Global Banking & Finance Review
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Russia to sell part of its stake in shipping group Sovcomflot to raise funds for stretched budget

Published by Global Banking & Finance Review

Posted on November 3, 2026

2 min read

· Last updated: November 3, 2026

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Russia to Sell 7.8% Sovcomflot Stake to Boost Federal Budget Revenues

Russia's Strategic Asset Sales and Budget Deficit Measures

Overview of Sovcomflot Stake Sale

MOSCOW, Nov 3 (Reuters) - Russia plans to sell a 7.8% stake in state-controlled shipping giant Sovcomflot as it seeks additional sources to cover its budget deficit in the fifth year of the war in Ukraine.

Details of the Sale Process

The state property fund said on Tuesday it has begun a selection process to organise the sale of 7.8%, minus one share, in the company. Applicants will be required to submit a report on "possible deal structures that would maximise cash proceeds to the federal budget".

Current Ownership Structure

Russia currently holds 82.8% of Sovcomflot, having sold 17.2% through an initial public offering in 2020.

Post-Sale Ownership and Strategic Importance

The additional sale would leave the state with 75% plus one share of the strategically important company, which plays a key role in exporting Russian oil and gas, including LNG shipments from Arctic projects.

Financial Implications

By selling the stake Russia could raise about 15 billion roubles ($183.78 million), based on the company's current share price on the Moscow Exchange.

Context: Russia's Budget Deficit and Revenue Strategies

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.

Budget Deficit Projections

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

Other Planned Asset Sales

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

Exchange Rate Information

($1 = 81.6200 roubles)

Reporting Credits

(Reporting by Gleb Stolyarov; Editing by Mark Trevelyan)

Key Takeaways

  • Sovcomflot stake sale signals renewed use of strategic asset privatization to fund military and budget pressures
  • Alongside Sovcomflot, Russia plans to sell stakes in NMTP (20 %) and Aeroflot (23.8 %), reflecting intensified asset sales
  • The move comes amid a budget deficit expected to reach up to ~3 % of GDP in 2026, prompting reliance on asset liquidation

Frequently Asked Questions

How much of Sovcomflot does Russia plan to sell?
Russia plans to sell a 7.8% stake, minus one share, in Sovcomflot.
Why is Russia selling part of its Sovcomflot stake?
Russia is selling the stake to raise funds for its stretched federal budget, especially amid rising military spending due to the Ukraine conflict.
How much money could Russia raise by selling the Sovcomflot stake?
The sale is expected to raise about 15 billion roubles, or around $183.78 million, based on current market prices.
What other state assets is Russia planning to sell?
Russia also plans to sell a 20% stake in Novorossiysk Commercial Sea Port and a 23.8% stake in Aeroflot.
How will the sale affect the state's ownership in Sovcomflot?
After the sale, the state will retain 75% plus one share in Sovcomflot.

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