Monday, February 1, 2016

Putin called the key conditions large-scale privatization – RBC

Russia’s President Vladimir Putin (center, background) in the Kremlin at a meeting on privatization in 2016 Photo: Alexei Nikolsky / press-service of the President of the Russian Federation / TASS

Vladimir Putin said that the large-scale privatization should not lead to the sale of assets for a pittance, and by the money of the state, investors should seek their own resources, and the authorities – to prevent the withdrawal of assets in offshore

On Monday, during a meeting with members of the government Russian President Vladimir Putin outlined the “key issues” that need to be guided by the sale of companies with state participation.

The first of them, the president called the absolute transparency of the privatization transactions. “All privatization transactions must strictly conform to the standards and requirements of the law, of course. And the need to ensure maximum transparency of these transactions for their members and to the public “, – said the head of state.

Among the most important moments, Putin also took the economic feasibility of the sale of state assets. The President stressed that the sale of the shares at bargain prices should not be. “For the budget it will not bring much good, besides, this practice is fraught with the capture of enterprises competing companies, which eventually also not the best for the market. This, of course, should be avoided, “- said the head of state.

Putin also said that” privatization – is not only a fiscal component “, but also” the way for structural changes in the economy, “but because it is crucial state to “clearly understand what and who is selling and what consequences this will have for the development of entire industries and the economy».

In this regard, the Head of State stressed the need to pay more attention to “quality investors” . According to him, the transfer of shares from the state in the hands of private investors is possible only if the latter clear development plans, as well as its own resources.

«It is necessary that future investors and purchasers looking for their own resources or loans, but not from state-owned banks. To sense from this will be a little “, – Putin said.

He also said that the state should retain control over strategic enterprises and to prevent the departure of the privatized assets from the Russian jurisdiction. “The new owners of privatized assets must be in Russian jurisdiction. Gray schemes, the withdrawal of assets offshore, concealing the owners of shares are not permitted. We’ve been talking about deofshorizatsii, and in these conditions to go to the new privatization, allowing further ofshorizatsiyu Russian economy is wrong, “- Putin said.

The held Monday at the Kremlin meeting, attended not only by members of the government, and RZD President Oleg Belozerov, ALROSA President Andrew Zharkov, president of “Bashneft” Alexander Corsica, VTB President Andrei Kostin, General Director of “Aeroflot” Vitaly Saveliev, the president of “Rosneft” Igor Sechin and General Director of “Sovcomflot” Sergei Frank.

The current federal budget law for 2016 laid 33.2 billion rubles. Privatization in this amount is considered income from the sale of only one major asset – shares “Sovcomflot” (25% minus 1 share). In March last year, the head of department of property relations and the privatization of the largest organizations of the Federal Property Agency, Vitaly Sergeichuk estimated proceeds from the sale of a package of 24 billion rubles., Half of which could be directed to the company itself.

Video: RBC

However, the Ministry of Finance in December, proposed to increase the revenues from privatization significantly – to 1 trillion rubles. Of these, half of the amount would bring the privatization of 19.5% of “Rosneft».

In the autumn of 2015 the head of the Federal Property Agency Olga Dergunova said that the Federal Property Management Agency is technically ready for the privatization of stakes in major state: “We understand that the situation in international markets is not improving … If the president would support such a decision, that is, an asset class that are ready for privatization. It’s all public companies: a company “Rosneft” is the company “RusHydro”, a company Alrosa is the company “Aeroflot”. That is, in fact, all those assets, whose shares are traded on the stock exchange ».

The proposal to intensify work on the sale of major state assets sounded even under more favorable situation – Ministry of Finance proposed budgeted increase in revenues from privatization even in the scenario average oil price in 2016 at $ 40 per barrel. and a budget deficit of 3% of GDP. Now, however, sources RBC White House said that the idea of ​​selling a package of “Rosneft” is losing popularity among the leadership of the government.

Revitalization of the work on the privatization of major state assets available to “not shoot reserves,” Putin said at the December 2015 big press conference.

At the end of last week, Vladimir Putin ruled out a quick privatization of the Savings Bank in the capital of which the Bank of Russia owns 50% + 1 share. The head of state supported the position of the head of the Central Bank, Elvira Nabiullina, who called the privatization of the Savings Bank of premature and depositor confidence is largely based on the fact that the controlling stake in the bank is from the state.

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