Privatization of Russia's oil transportation monopoly Transneft will be disastrous, President Nikolai Tokarev said on Friday, adding the government would not allow it.

"This (the privatization) would be the most terrible thing that could happen to Transneft. I am sure the government would not allow the sale of Transneft," Tokarev told a news conference.

Three foreign investment funds, the company's minority shareholders, voiced the idea of selling a 25 percent state of Transneft on the open market.

In July, the Economic Development Ministry crossed Transneft out from the list of 2011-2013 privatizations compiled by the Finance Ministry.

Tokarev also said Transneft had no plans to hike oil transportation tariffs in 2011.

"We do not plan to increase tariffs next year. We have sufficient revenues to cover loan liabilities and payouts, but we are proceeding from the revenue provided by the current tariff increase," Tokarev told journalists.

In 2010, Russia's oil transportation tariffs increased 15.9 percent as of January 1, 3.3 percent as of August 1 and will rise 9.9 percent from December 1.

MOSCOW, Sept 3 (RIA Novosti)