Russneft said it plans to sell its shares on the Moscow stock exchange in the fourth quarter of the year.
The company, which is majority owned by businessman Mikhail Gutseriyev, produced more than seven million tonnes of oil last year.
It plans to sell a stake of between 25% to 49% in an initial public offering, depending on demand.
Russneft is looking to raise about $2billion through shares, according to reports.