Russia unveils $59-bn privatisation of 900 state enterprises
22 Oct 2010
A decade after increasing its grip on key state owned companies, Russia yesterday revealed plans to raise up to 1.8 trillion roubles ($59 billion) by selling stakes in 900 state-owned enterprises over the next five years to help balance the budget.
The Russian government has approved privatising plan of 900 state run companies in the aviation, energy, agriculture, banking, transportation, telecommunications, among other sectors, said first deputy Prime Minister Igor Shuvalov yesterday.
''Privatisation will proceed on all fronts. In other words, we will sell companies that are directly owned by the Russian Federation, companies that belong to Russian regions, and companies that are controlled by the Russian Federation,'' said Shuvalov.
Stakes that will be sold in state run companies includes selling 10 per cent stake in OAO Sberbank, Russia's biggest lender, 10 per cent stake in VTB Group, the country's second-biggest bank and 25 per cent in Russian Agricultural Bank.
The Russian government will also sell 15 per cent stake in Russia's largest oil company Rosneft, but hold on to its stake in pipeline operator OAO Transneft and OAO Zarubezhneft.
Russia may shed as much as one share less than 25 per cent in OAO Russian Railways, the state-owned rail monopoly, 50 per cent minus one share in OAO Sovcomflot, Russia's biggest shipper and reduce its 51.2 per cent holding in OAO Aeroflot, the national carrier, to a controlling stake.
It will also sell a 7.97 per cent stake in state hydroelectric operator Roshydro, 4.11 per cent stake in Federal Grid Co, while it has yet not decided to sell its stake in Moscow's Sheremetyevo airport.
