Structural Reform Goals Should Trump Revenues in Privatization Decisions — Shuvalov
Interfax - 4.18.12 - JRL 2012-72
MOSCOW. April 18 (Interfax) - The objectives of structural economic reform, rather than thoughts of filling government coffers should be the priority in decisions about the pace of privatization, First Deputy Prime Minister Igor Shuvalov said.
file photo"All experts say that we need to wait (with privatization) while there is such volatility on the markets. My position is that there is no need to wait. Structural reforms are probably more important to us than the fiscal element," Shuvalov said in response to senators' questions during government hour in the Federation Council on Wednesday.
However, Shuvalov assured the senators that "we won't sell anything for nothing."
"The revenue part of the budget also needs to be satisfied," Shuvalov said.
Privatization in Russia, despite ambitious plans announced by President Dmitry Medvedev, has clearly stalled recently. This issue of priorities mentioned by Shuvalov - whether it is better to wait for a more favourable market climate to sell off assets or whether structure reforms should take precedence and privatization should move ahead despite the low market - is at the center of a disagreement within the government.
Deputy Prime Minister Igor Sechin, for example, has warned of the risk of selling state energy assets cheaply, while the Economic Development Ministry is constantly calling for faster privatization.
Prime Minister Vladimir Putin, whose position regarding the pace of privatization is the decisive factor, has in his public statements not yet given any preference to either position.
"We need to carefully look at what we, the state, get from privatization, what are the returns. Here there are two main elements. In the course of privatization, there is the goal for the economy to become more modern and efficient, and the second is fiscal. We need to try to combine these two goals, this should be the point of departure," Putin said last week in the State Duma.
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MOSCOW. April 18 (Interfax) - The objectives of structural economic reform, rather than thoughts of filling government coffers should be the priority in decisions about the pace of privatization, First Deputy Prime Minister Igor Shuvalov said.
file photo"All experts say that we need to wait (with privatization) while there is such volatility on the markets. My position is that there is no need to wait. Structural reforms are probably more important to us than the fiscal element," Shuvalov said in response to senators' questions during government hour in the Federation Council on Wednesday.
However, Shuvalov assured the senators that "we won't sell anything for nothing."
"The revenue part of the budget also needs to be satisfied," Shuvalov said.
Privatization in Russia, despite ambitious plans announced by President Dmitry Medvedev, has clearly stalled recently. This issue of priorities mentioned by Shuvalov - whether it is better to wait for a more favourable market climate to sell off assets or whether structure reforms should take precedence and privatization should move ahead despite the low market - is at the center of a disagreement within the government.
Deputy Prime Minister Igor Sechin, for example, has warned of the risk of selling state energy assets cheaply, while the Economic Development Ministry is constantly calling for faster privatization.
Prime Minister Vladimir Putin, whose position regarding the pace of privatization is the decisive factor, has in his public statements not yet given any preference to either position.
"We need to carefully look at what we, the state, get from privatization, what are the returns. Here there are two main elements. In the course of privatization, there is the goal for the economy to become more modern and efficient, and the second is fiscal. We need to try to combine these two goals, this should be the point of departure," Putin said last week in the State Duma.