---
title: "Kremlin to sell 7.8% stake in Sovcomflot to plug military budget gap"
description: "Rosimushchestvo is seeking organizers to sell a 7.8% stake in Sovcomflot worth about 15 billion rubles. The proceeds will go to the federal budget to cover the deficit amid rising military spending to 17.1 trillion rubles."
date: 2026-11-04T12:36:05.781Z
lang: en
url: https://xab.info/en/posts/russia-sells-sovcomflot-stake-for-budget
tags: [sovcomflot, russia-budget, privatization, military-spending, shadow-fleet, rosimushchestvo]
author: "Darya Fomina, Andrey Kosynko"
publisher: "XAB.info"
---

# Kremlin to sell 7.8% stake in Sovcomflot to plug military budget gap

![Vladimir Putin at an official event against a red background](https://xab.info/media/2026/11/04/rossiya-prodaet-dolyu-sovkomflota-dlya-byudzheta/rossiya-prodaet-dolyu-sovkomflota-dlya-byudzheta-1.webp)

## Key Points

- Rosimushchestvo has begun searching for organizers to sell 7.8% of state-owned Sovcomflot shares
- Freedom Global analyst estimates the stake at ~15 billion rubles, but actual revenue may be lower due to a discount
- Military spending next year will rise to 17.1 trillion rubles (35% of the budget), with a 2027 deficit of 5.4 trillion rubles
- Privatization occurs amid Moscow's statements on readiness for escalation and rejection of the US peace plan

Rosimushchestvo has begun searching for organizers to sell a 7.8% stake in Sovcomflot, Russia's largest shipping company and one of the key operators of the so-called "shadow fleet" of tankers. This is reported by RBC-Ukraine citing data from The Moscow Times. The state owns 82.8% of the company's shares, meaning about a tenth of the state stake is planned to be put on the secondary market. The proceeds will be channeled into the federal budget to partially cover the deficit.

### What Sovcomflot is and why it was chosen

Before the full-scale invasion of Ukraine, Sovcomflot possessed the world's largest fleet of Aframax medium-range tankers, as well as ten icebreakers. The company became a central link in Russia's system for exporting oil and petroleum products bypassing Western sanctions, making it an asset of strategic importance for Moscow. Nevertheless, according to sources, this particular stake was chosen for privatization primarily due to its liquidity and relatively clear market valuation.

### Package valuation and placement terms

Freedom Global analyst Vladimir Chernov estimates the value of the stake put up for sale at approximately 15 billion rubles. According to him, the Russian Ministry of Finance could potentially raise this exact amount from the deal. However, the analyst emphasizes: if the shares are offered to a wide range of potential buyers, the price will likely need to be set below the stock exchange price to ensure demand, which will reduce actual budget revenues. Thus, real proceeds may turn out to be lower than the stated estimate.

### Military spending as a deficit driver

The privatization of Sovcomflot occurs against the backdrop of another surge in military spending. Next year, 17.1 trillion rubles is earmarked for these purposes, accounting for 35% of all public expenditures. Compared to the 2026 budget, military spending will increase by about a third. Despite the third tax hike in the past three years, the Russian Ministry of Finance forecasts a budget deficit of 5.4 trillion rubles in 2027.

### Forecast for 2028–2029

Over the next two years, the budget situation, according to the agency's calculations, will not improve significantly: a deficit of 5.1 trillion rubles is scheduled for 2028, and 5.2 trillion rubles for 2029. This means that even after privatizing part of state-owned assets, Moscow will be forced to seek additional funding sources or make decisions on further cuts to social and infrastructural expenditures.

The context of the deal is supplemented by recent statements from the Russian leadership: according to available reports, Russia no longer views the US peace plan as a working scenario and is preparing to intensify strikes against Ukraine. In particular, Kremlin leader Vladimir Putin stated that Russia is ready for war with Europe. Against this background, the sale of a stake in Sovcomflot looks less like an element of long-term economic strategy and more like an operational tool to mobilize financial resources for current military needs.

## Fact-Check & Sources

- [Россия продает долю танкерного гиганта из-за нехватки денег на войну](https://www.rbc.ua/ukr/news/rosiya-prodae-chastku-tankernogo-giganta-1793795412.html) - Single source. Describes the initiated search process for organizers, analyst valuation, and budget figures. There is no official press release from Rosimushchestvo in the text.

## FAQ

### What stake in Sovcomflot will be put up for sale?

Rosimushchestvo plans to sell 7.8% of the company's shares. The state generally owns 82.8% of Sovcomflot, so roughly a tenth of the state package is being put on the market.

### How much can Russia raise from the sale?

Freedom Global analyst Vladimir Chernov estimates the stake at approximately 15 billion rubles. At the same time, he notes that with a wide placement, the price may be set below the exchange rate, reducing actual proceeds.

### Where will the proceeds be directed?

Funds from privatization will be sent to the federal budget of Russia to partially cover the deficit.

### What is the budget deficit forecast for 2027–2029?

According to the Russian Ministry of Finance, the deficit will amount to 5.4 trillion rubles in 2027, 5.1 trillion in 2028, and 5.2 trillion in 2029.

### Why was Sovcomflot specifically chosen for privatization?

The company is Russia's largest shipping asset and one of the key operators of the "shadow fleet" tankers. Before the invasion, it owned the world's largest fleet of Aframax tankers and ten icebreakers, making the package relatively liquid and understandable for investors.