World Bank praised Russia for privatization plan

World Bank approved plans of Russian Ministry of Finance to held privatization of 10 state companies & banks. According to the WB estimations this privatization will become a considerable success for Russian economy. The major WB economist for Russia Mr. Zeljko Bogetic noted that such a step means that Russian authorities want to loosen governmental control in certain spheres of economy. According to Mr. Bogetic privatization will “diminish the problem of budget filling, bring new capital & direct foreign investments”.

On 26th July it became known that the Ministry of Finance is going to carry out a three – year privatization plan. They believe they could get up to 900 billion rubles for sending state companies’ shares that will be used to cover budget deficit. It is supposed that in 2011 the gap between gains & loses of the budget will constitute 4%, in 2012 – 3%, in 2013 – 2% of the GDP. Among the companies chosen for privatization are Transneft, Rosneft, FSK, Rusgidro, Sberbank, VTB, Rosselkhozbank, Russian railways, Sovkomflot & AIZHK.

At the same time according to the head of the government press-secretary there is no final decision yet. He claimed that in any case the government will keep the controlling interest in all strategic assets. Commission for budget projects by Russian Prime Minister discussed on 27th of July final list of the assets to be privatized.