The Russian government has completed the sale of a controlling stake in mid-sized oil producer Bashneft to the Kremlin-owned Rosneft for 329.69 billion roubles (US $5.30 billion), the economy ministry said on Oct.12.

The sale is a part of a government privatization drive aimed at narrowing the state budget deficit.

The ministry, citing the minister, Alexei Ulyukayev, said Rosneft’s bid was higher than a valuation of between 297 billion roubles and 315 billion roubles, while the unidentified second bidder offered a lower bid.

President Vladimir Putin said earlier on Wednesday that Russia's privatization drive will be more efficient after Rosneft purchases the state’s stake in Bashneft.

($1 = 62.2255 roubles)