ST. PETERSBURG — The government has revised down its target for state asset sales this year by more than a quarter to 72 billion rubles ($2.3 billion) from the government’s original goal of 100 billion rubles, Economic Development Minister Elvira Nabiullina said Friday.
The ministry will within two to three weeks submit for approval a list of banks allowed to consult the government on the sales, she told reporters.
The government is seeking to boost revenue to narrow the budget deficit, attract foreign investors and cut the economy’s dependence on energy. Nabiullina on March 17 raised the target to more than 100 billion rubles from a previous forecast of 70 billion rubles because “the markets are growing.” The list of assets for sale this year hasn’t changed, she said at the time.
The government said last year that it sought to sell state energy and transport holdings, earmarked about 5,500 enterprises for divestment and pledged to sell shares in companies that are already publicly traded, including Rosneft, the country’s biggest oil producer.
The Economic Development Ministry began talks with “all major banks,” including JPMorgan Chase, Bank of America Merrill Lynch, UBS and Troika Dialog, Alexei Uvarov, head of the ministry’s property department, said April 27.
Morgan Stanley Chairman John Mack on Friday urged President Dmitry Medvedev to expedite state asset sales to create “a lot of momentum” for the Russian stock market.
“Privatization is critical,” Mack said during a meeting with Medvedev and foreign investors in St. Petersburg. Russia needs more listed companies, Mack said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.