The Progress of Privatization and the Situation in Regard of Ownership Relations in 2013

Abstract

The most important event of 2013 was the approval of the Forecast Plan (Program) of Federal Property Privatization and the Main Directions of Federal Property Privatization for 2014-2016. Its most significant distinctive feature, in which it differs from the previously issued document of the same type, was the introduction of some serious alterations to the privatization plans for biggest companies. The list of assets earmarked for privatization remained essentially the same as before. However, in contrast to the privatization program for the period of 2011-2013, the reduction of state participation in the capital of many biggest companies will by no means imply that the government is going to lose the right of corporate control, or at least the possibility to influence corporate governance procedures. The aggregate volume of federal budget revenue generated by privatization (or sale) transactions and use of state property in 2013 will drop on the previous year by nearly one-third, and by more than half when adjusted by the amount of revenue generated in 2012 by the RF Central Bank (the Bank of Russia) from the sale of a stake in Sberbank. Nevertheless, the revenue figure for 2012 in this budget item was the third highest since the early 2000s following the record high of 2012 and the 2011 indices.

Keywords: Russian economy, privatization, ownership relations

JEL Classification: H82, K11, L33