Russian officials are hoping for some privatization assets, including those who seized the court order from the beginning of the President Vladimir Putin Invasion, will reinforce Government’s cash registers after the Western Capital Exodus Sanctions.
Said Vladimir Milov, a Putin critic and former Russian minister, Newsweek That the proposal for selling the role in companies would not attract market players because they would not have an impact on companies that dominate the state.
The announcement of the privatization of Russian Finance Minister Anton Siluanov is revived by the 2010 World Weekening campaign. It has a state property and can create billions of dollars in revenues from federal budgets.
Newsweek He contacted the Russian Ministry of Finance for Comment.
Photo illustration Newsweek / Getty
Why is it important
The privatization plan is accompanied by Russian confiscation of property assets from the owners of the accused on the detriment of the country’s national interests.
Sold in state companies, including seized, means another episode in the redistribution of property in Russia, which seeks to finance its army because it faces economic turbulence of sanctions and inflation.
What to know
On Tuesday, during the meeting with the Rosimushchest, the Russian Federal Property Management Agency, Siluanov announced great privatization, where shares in seven major companies would be sold to collect 300 billion rubles ($ 3.66 billion).
2023. Siluanov revised the outdated plan presented in 2010. proposing that the government sells shares in 30 state companies without losing control.
Office of Russian prosecutors submitted lawsuits for the draft of property from companies, which Putin insisted that he was not a reversal of privatization because the target owners considered the country’s safety damage.
Companies in the military industrial complex, engineering, food, ports and real estate associated with owners of companies abroad were most often targeted, raising concerns of companies on the volume of nationalization.
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Miles said Newsweek In order to find hard to find asset buyers in these circumstances. Also, the previous announcements of privatization by Russian authorities did not follow the actual actions, he said.
“The value of the property actually is negligible, as more than two decades, the Russian government keeps control of key economic industries and does not want to go ownership of strategic players,” Miles added.
Miles, who was the Deputy Minister of Energy in Russia between May and October 2002. years, he said that the Russian government could sell the basics of minority capital in state-owned companies, retaining strategic control.
However, this would be a little interest in market players because it requires significant investment for minorities and would not be able to influence the company management, making it a loss of money.
Another option would be to redeem minority roles in some major state companies to other large state players, Miles said, but that would not be privatization in the classical sense.
Vasily Astrov, an expert in the Russian economy at the Vienna Institute for International Economic Studies, said the privatization plan was another episode in the redistribution of property in Russia and that private actors near their own.
Siluanov said that privatizations would intensify and that this year revenue from the sale of such assets would be at least 100 billion rubles ($ 1.23 billion).
Boris Grozovski, Expert Exp for Economics in the Wilson Center, Tank Center in Washington, DC, said Newsweek For Siluanov wrowns with government difficulties in the budget and that the privatization revenues would help them a lot.
Timothy Ash, markets were told in the formation of the market on the management of BlueBay Newsweek That the plan emphasized the fiscal challenges that are faced by Russian authorities and how they extracted resources in the sovereign fund of wealth.
What do people say
Russian Finance Minister Anton Siluanov said Tuesday: “We had suggestions for great privatization.”
Said former Russian Deputy Minister of Energy Vladimir Milov Newsweek: “This is a little interest in market players requires significant investment, but does not provide any opportunity for the actual impact on the companies that still dominate the state-of-the-minority, which gives zero influence and control.”
Boris Grozovski, Expert Expert for Economics in the center of Wilson, said Newsweek: “Siluanov has great difficulty with the budget for 2025. And wider, and 2-3 trillion would help him a lot. … That’s why he came up with this idea.”
What happens next
The Russian Ministry of Finance added dozens of new entries on the list of Federal Property Sliced for Privatization in the next two years, and the auctions are scheduled for the second quarter of 2025. Years.
According to the horror, it is difficult to say what will be the right scope of privatization because they are among nationalized companies, many are directly or indirectly connected to the military-industrial complex.
2025-03-23 08:00:00
