Russian Govt Discussing How to Slash Share of State Property to Third By 2020 — Shuvalov
Interfax - 5.14.12 - JRL 2012-88
MOSCOW. May 14 (Interfax) - Acting First Deputy Prime Minister Igor Shuvalov said the Russian government has not abandoned plans for large-scale privatization of state property.
file photo "We are now discussing a guideline so that total control (even indirect) over state property of the Russian Federation and the regions amounts to no more than a quarter, maximum one-third of the economy by 2020," Shuvalov said in an interview published by Vedomosti on Monday.
He said regional government will also have to aim for this target. "We still have regions that are large holders of shares in resource companies," Shuvalov said.
He said previously stated privatization plans will be carried out. "We will carry out all plans that we set out. Without particular haste, we need to look at the market," Shuvalov said.
He stressed that the current situation differs from that of the 1990s. "In the 1990s, they hurried with privatization because this was a factor of political stability and partly to cover the budget deficit. This is not the case now. Now we need to account for the quality of deals made rather than the revenues earned. Everyone will know: there is a certain asset for sale at a certain price, we won't sell for any less," Shuvalov said.
The decisions on the privatization of specific assets will depend on the market situation, he said.
"As for whether to sell or not, we look at the situation. If a window has opened, then forward. Therefore, with privatization we should not be hasty, but neither can we slow down. The work should proceed along the principle of hurry but don't rush," Shuvalov said.
He also said that he does not see any risk of privatization plans being derailed, for example under pressure from the State Duma.
"If we handle ourselves incompetently, then perhaps such a risk will arise. But we need to present the public with all necessary arguments in favour of privatization. After all, we're not selling anything at loans-for-shares auctions like before. Now there is a completely different privatization. The main goal is to find a good investor; fiscal benefits are the second goal," Shuvalov said.
Keywords: Russia, Economy, Business - Russian News - Russia
MOSCOW. May 14 (Interfax) - Acting First Deputy Prime Minister Igor Shuvalov said the Russian government has not abandoned plans for large-scale privatization of state property.
file photo "We are now discussing a guideline so that total control (even indirect) over state property of the Russian Federation and the regions amounts to no more than a quarter, maximum one-third of the economy by 2020," Shuvalov said in an interview published by Vedomosti on Monday.
He said regional government will also have to aim for this target. "We still have regions that are large holders of shares in resource companies," Shuvalov said.
He said previously stated privatization plans will be carried out. "We will carry out all plans that we set out. Without particular haste, we need to look at the market," Shuvalov said.
He stressed that the current situation differs from that of the 1990s. "In the 1990s, they hurried with privatization because this was a factor of political stability and partly to cover the budget deficit. This is not the case now. Now we need to account for the quality of deals made rather than the revenues earned. Everyone will know: there is a certain asset for sale at a certain price, we won't sell for any less," Shuvalov said.
The decisions on the privatization of specific assets will depend on the market situation, he said.
"As for whether to sell or not, we look at the situation. If a window has opened, then forward. Therefore, with privatization we should not be hasty, but neither can we slow down. The work should proceed along the principle of hurry but don't rush," Shuvalov said.
He also said that he does not see any risk of privatization plans being derailed, for example under pressure from the State Duma.
"If we handle ourselves incompetently, then perhaps such a risk will arise. But we need to present the public with all necessary arguments in favour of privatization. After all, we're not selling anything at loans-for-shares auctions like before. Now there is a completely different privatization. The main goal is to find a good investor; fiscal benefits are the second goal," Shuvalov said.