Russia's Renewed Push for Privatization: A Strategy for Economic Revitalization

The Russian finance ministry plans to restart privatizations of state assets, aiming to sell stakes in seven companies and generate up to 300 billion roubles. This move seeks to boost domestic investment and budget revenue amid Western sanctions and economic pressures from the Ukraine conflict.

The Russian finance ministry has announced plans to revive privatizations of state assets, with intentions to sell stakes in seven large companies next year to raise approximately 300 billion roubles ($3.66 billion). The decision comes as Moscow seeks to encourage domestic investment and improve economic efficiency in the face of Western sanctions since the conflict in Ukraine began.

Finance Minister Anton Siluanov, speaking at a meeting with Rosimushchestvo, indicated that it is an opportune moment to reintroduce these plans to the agenda. Initially launched in 2010 by then-minister Alexei Kudrin, the privatization endeavor had stalled, with only the sale of a stake in oil major Rosneft reaching completion.

Siluanov proposed in late 2023 to reinitiate this privatization effort by suggesting the sale of shares in 30 large state-owned companies while maintaining state control. While the government is yet to publish the names of these companies, industry leaders such as VTB Bank's Andrei Kostin have recommended firms like Transneft, Russian Railways, and Russian Post.

(With inputs from agencies.)