Jul. 26 – The Ministry of Finance has suggested that the government privatize packages of 10 state-run companies and banks over the next three years, an official told Russian daily Vedomosti.
The Russian state-run companies Transneft and Rosneft are included in the 2011-2013 privatization plan, as are Federal Grid Company of Unified Energy System, Rusgidro, Savings Bank, VTB, Rosselhozbank, Russian Railway, Sovkomflot and FBK.
By Ministry of Finance calculations, the state will get 883.5 billion rubles, 298 billion in 2011, 276.1 billion in 2012 and 309.4 billion in 2013, if the aforementioned companies go private.
All this money would be spent on budgetary deficiency financing. It would reduce the budgetary deficiency to 4 percent of gross national product in 2011, 3 percent in 2012 and 2 percent in 2013.
“The privatization of state-run companies and banks can become one of the most powerful sources of budget deficit repayment,” the Ministry of Finance official is assured. “Privatization is more favorable than loans, it is not necessary to spend funds for service.”
Budget parameters for 2011-2013 will be discussed tomorrow on the commission headed by Prime Minister Vladimir Putin. An official decision will be made by the government on Thursday, July 29.
“This is the right moment for sale,” Icon Private Equity president Cyril Dmitriev said to Russian daily Kommersant. “2011-2013 is going to be the time when investors will start to come back to emerging markets. So, not only Russian companies, but also large western funds can participate in tenders.”
