MOSCOW. April 11 (Interfax) - Russian Prime Minister Vladimir Putin, whose position plays a decisive role in the pace of privatization, has given positive signals both to those in favor of speeding up privatization and those against. "It is completely clear and international experience has shown that privatized companies operate more efficiently than state-owned companies (. . .) Does that happen when we privatize a company? No. It does not always happen. For certain major companies - it is far from always. Moreover, owners take revenue from each other and divide up property. That is the truth," Putin said, replying to a question from a Communist Party deputy concerned about the government losing control over strategic companies.
Putin said much still needs to be done for the positive effects of privatization "to work for society as a whole," especially in terms of legislation.
"The general trend (for privatization) is correct. If we return to government ownership again, nothing good will come of it," the prime minister said.
The main subject of the dispute between those in favor and those against accelerated privatization is whether to wait for a favorable situation for the sale of assets, or to focus on structural changes in the economy and sell even in a low market. Deputy Prime Minister Igor Sechin warns about the risk of selling government energy assets cheaply and is constantly debating with the Economic Development Ministry about the pace of privatization.
The prime minister asked for a balance between the two positions. "We need to accurately ensure that we the government can obtain income from privatization. There are two key components here. The aim we set for privatization is that the economy becomes more modern and efficient and the second aim is a fiscal one. We need to strive to combine both these aims," he said.
Keywords: Russia, Government, Politics - Russian News - Russia
MOSCOW. April 11 (Interfax) - Russian Prime Minister Vladimir Putin, whose position plays a decisive role in the pace of privatization, has given positive signals both to those in favor of speeding up privatization and those against.
"It is completely clear and international experience has shown that privatized companies operate more efficiently than state-owned companies (. . .) Does that happen when we privatize a company? No. It does not always happen. For certain major companies - it is far from always. Moreover, owners take revenue from each other and divide up property. That is the truth," Putin said, replying to a question from a Communist Party deputy concerned about the government losing control over strategic companies.
Putin said much still needs to be done for the positive effects of privatization "to work for society as a whole," especially in terms of legislation.
"The general trend (for privatization) is correct. If we return to government ownership again, nothing good will come of it," the prime minister said.
The main subject of the dispute between those in favor and those against accelerated privatization is whether to wait for a favorable situation for the sale of assets, or to focus on structural changes in the economy and sell even in a low market. Deputy Prime Minister Igor Sechin warns about the risk of selling government energy assets cheaply and is constantly debating with the Economic Development Ministry about the pace of privatization.
The prime minister asked for a balance between the two positions. "We need to accurately ensure that we the government can obtain income from privatization. There are two key components here. The aim we set for privatization is that the economy becomes more modern and efficient and the second aim is a fiscal one. We need to strive to combine both these aims," he said.