Add to favorite
 
123
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa


Will Russian Economy Kick-Start or Stall: A Look At Privatisation
July 5, 2013 17:38


Photo Credit: http://er.ru
The cabinet is sandwiched between the needs to deliver on the president’s pledges given before his re-election and the Kremlin’s growing reluctance to unload any of the assets previously announced in Medvedev’s bold 2010 privatization program.
According to the new forecasts issued by the Finance Ministry, the budget might lose between RUR 2.4 and RUR 312 billion (!). In case of the last scenario, the government would have to tap into the funds of the reserve fund to compensate for the expenditures.
Privatization of the country’s most appealing assets might be a solution but according to the growing number of experts, including international, the Kremlin is backpedalling on its earlier commitments.
The government is citing the poor macroeconomic situation as the reason for the delay, saying the ‘selloff would raise only 180 billion rubles ($5.5 billion) over the next three years’, while the initial target was to raise ‘$34 billion by the end of 2014’, says WSJ.
Here’s more news that will hardly improve Russia’s investment appeal.
1. Aeroflot's IPO is up in the air, with conflicting reports on its privatization deadlines.
According to media reports, there is a strong lobby arguing for a delay in the IPO on the grounds that the federal budget would lose hefty dividends and that the Russian biggest airline is key to the development of domestically manufactured passenger aircraft.
Originally, the IPO was scheduled for 2014-2016, but in May, Finance Minister Anton Siluanov proposed speeding up the process.
2. Rostelecom will be privatized no earlier than 2014-2016, Vedomosti daily cites a report by the Interfax news agency.
But according to new plans, foreign companies may be denied the right to take part in in the IPO.
The government hopes to raise up to $5 billion during the offering of the country's biggest telecom operator.
3. Russia's new Economy Minister Alexey Ulyukaev shifted most deadlines to 2016, a move which might leave the federal budget gasping for cash.

But these bits of news are no surprise to foreign investors, says WSJ. They have long abandoned hopes that the government will wind down its presence in the economy. 




Author: Mikhail Vesely

Tags: Russian economy privatisation    

Next Previous

You might also find interesting:

Nissan Parts Produced In Russia Will Be Exported To Europe SPIEF 2015 Hopes & Challenges Russian MOFA Comments On Assad's Resignation S7 Applies For 24 International Destinations "Russian offshores": Cyprus Tax Conditions for Residents





comments powered by Disqus




Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share


TAGS:
Organ  APEC 2012  Russian internet companies  St. Petersburg  Russian Actresses  Russian Animation  Football  Kazan  Russian academy of sciences  Yekaterina Koneva  Russian directors  racewalking  Zaitsev  Exhibitions in Moscow  Moscow actions  accident  Painting  Georgy Taratorkin  Destruction of Monuments  Russian tourism  Russian fairy tails  Sberbank  Events in Moscow  Mikhail Gorbachev  Leonid Desyatnikov  Russian Cinema  travel to Russia  Vladimir  Manege  Volgograd  Russian business  Moscow railway terminals  Primorye Region  Krylya Sovetov  Festivals in Moscow  Russian religion  Mercedes-Benz Fashion Week Russia  Moscow Souvenir   inflation  Fyodor Sologub  Russian economy  Nizhny Novgorod Region  travel to Kazan  Russian festivals  Russian events  Spiders  Easter  Krasnoyarsk  Russian drinks  Moscow 


Travel Blogs
Top Traveling Sites