Finance Ministry proposes government sells stakes in state companies
Russia’s Finance Ministry has proposed the government sell its stakes in the 10 largest state companies and banks to raise 29.5 billion USD in 2011-2013, a ministry source said to RIA Novosti on Monday.
The ministry proposes selling state-owned shares in 10 state companies and banks, but preserving control over them, the source told RIA Novosti. The move would bring 298 billion rubles to the state budget in 2011, 276.1 billion rubles in 2012 and 309.4 billion roubles in 2013, a total amounting to approximately 29.5 billion USD.
The list of companies that the ministry suggests selling stocks in include Tatneft oil company, Rosneft oil company, Russian Railways, Sberbank and Russia’s largest shipping company Sovcomflot.
The source said the government had not yet decided on the ministry’s suggestion.
In June, President Dmitry Medvedev signed a decree depriving 452 state-controlled companies their status as “strategic”. A company holding this status cannot be sold out of state hands. The President’s office underlined that the new status of the companies does not necessarily mean that they will be privatized. In a number of cases, the state is likely to keep a firm hand of control. However, the decree is expected to facilitate increased investments and independence in the companies.
Read also: Murmansk port and Sovcomflot on privatisation list
