Russian Privatizations: The Line-Up is Announced

In September First Deputy Prime Minister Igor Shuvalov announced that Russia would resume privatizing assets in order to fill looming gaps in the country’s budget. On Monday November 24 the government released a list of the 14 most attractive assets it hopes to sell off in 2010.

In addition to the 14 named companies, which hail primarily from the infrastructure sector, there are 435 smaller companies that would collectively account for less than a third of the total proceeds the government hopes to raise. According to The Moscow Times, the government’s target figure for next year’s tranche of privatizations is 77 billion rubles ($2.7 billion).

This announcement comes at a time in which state corporations are coming under increasing scrutiny for lack of accountability and corporate responsibility. Earlier in November, Prosecutor General Yury Chaika presented a scathing analysis of Russian state corporations, citing misuse of state funds, wrongful disposal of property, unsanctioned bonuses and absent supervisors. As a result of the prosecutor’s investigation 22 criminal cases have been opened in connection with the activities of state corporations.  As Dmitry Medvedev continues to push for economic modernization - a major theme of his State of the Nation address on November 12 - there is hope in the presidential camp that the privatizations will help raise standards at these companies, in addition to helping bridge the fiscal gap.

The 14 Major Companies for Privatization

Source: The Moscow Times

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