Privatization of Novorossiysk Commercial Sea Port Shares
Russia is preparing to privatize a 20% stake in the Novorossiysk Commercial Sea Port (NCSP) to address a budget shortfall that, between January and April 2026, has already reached nearly 6 trillion rubles—far exceeding the annual target of 3.8 trillion rubles. The sale of this state-owned stake is estimated to bring in around 33 billion rubles. On May 23, Russian Prime Minister Mikhail Mishustin signed an order to include these shares in the privatization plan.
Between 2026 and 2028, the entire state-owned share of the NCSP holding company is expected to be put up for sale. This move follows a similar decision regarding Aeroflot, whose state stake is valued at roughly 45 billion rubles. According to Reuters, the sale of the NCSP stake is projected to generate about 33 billion rubles for the federal budget.
NCSP Holding: Structure and Financial Performance
The NCSP holding operates oil terminals including Novorossiysk on the Black Sea, with a capacity of approximately 500,000 barrels per day, and Primorsk on the Baltic Sea, with a capacity of around 1 million barrels per day. Together, these terminals handle nearly half of Russia's oil exports. The holding also includes the port of Baltiysk in the Kaliningrad region.
Last year, the company reported revenue of 76.5 billion rubles and net profit of 40.6 billion rubles. The state-owned Transneft holds a 60% stake in NCSP, making it the largest shareholder. This stake was transferred to Transneft in 2018 after the previous owner, Ziyavudin Magomedov, was arrested and sentenced to 19 years in a penal colony. Another 20% of NCSP shares are held by private investors on the stock exchange.
Russia's federal budget for January–April 2026 recorded a deficit of nearly 6 trillion rubles, 1.5 times higher than planned. Due to worsening economic forecasts, the budget could face an additional shortfall of 300–700 billion rubles this year, with that figure potentially rising to 1.3–1.8 trillion rubles in 2027. Early this year, the budget deficit over just two months already reached 91% of the annual target. In the first quarter of 2026, 6% of businesses ceased operations, and customs revenues fell to their lowest level since the start of the full-scale invasion.
The privatization of Novorossiysk Commercial Sea Port shares marks a significant step for Russia amid a growing budget deficit. It reflects the state's efforts to close financial gaps driven by economic difficulties and declining revenues. Since NCSP plays a key role in the country's oil infrastructure, its privatization could also impact market dynamics and foreign investment in this sector. Continuing this course may have long-term implications for Russia's economy, particularly in terms of reducing state control over strategic assets.
As Russia embarks on the privatization of its strategic assets to alleviate budgetary pressures, a similar trend is unfolding in Ukraine, where the government is set to auction off the Ocean Plaza Mall. This move highlights the increasing reliance on privatization as a financial strategy in both countries. To learn more about the expected revenue from this auction and its implications for Ukraine's economy, read our detailed coverage here.