Medvedev has approved the privatization plan for 2017-2019

Dmitry Medvedev

Photo: Alexander Astafyev / TASS

The government approved the forecast plan of privatization for 2017-2019. The Cabinet expects that annual revenues from privatization of Federal property will amount to 5.6 billion rubles.

The government approved the forecast plan of privatization of Federal property for 2017-2019. The corresponding order of Prime Minister Dmitry Medvedev, dated 8 February, published on the website of the Cabinet.

As noted in the explanatory note to the document, the plan provides for privatization in the years 2017-2019 federally owned shares of joint stock companies 477, 298 FGUPs (Federal state unitary enterprises), the government’s stake in ten limited liability companies, and more than a thousand objects of other property of the state Treasury.

In particular, it is planned to reduce the state’s share in ALROSA to 29% plus one share in Sovkomflot, up to 25% plus one share in VTB 25% plus one share of total number of shares of common stock. It is noted that the reduction in state participation in VTB to below 50% plus 1 share of the total number of ordinary shares will be carried out with the coordination of measures to reduce the participation of the Bank of Russia in Sberbank.

In addition, the privatization plan included 100% federally-owned shares of “far Eastern energy management company” (DVEUK).

As expected, annual revenues from privatization of Federal property without regard to the value of the shares of the largest companies will amount to 5.6 billion rubles.

The document was reviewed and approved at the Cabinet meeting on 2 February. The final plan did not include the sale of shares in OAO “Russian Railways” (RZD) and another 10% in the oil company “Rosneft”.

In October last year, RBC was the draft plan of privatization of Federal property for 2017-2019, according to which the Cabinet had planned to sell 8% of ALROSA, 35% in VTB and 25% of Russian Railways during the next three years. Total 2019 was planned to privatize 509 joint-stock companies, 316 of the Federal state unitary enterprises, the share of the state in 11 limited liability companies, as well as 1049 other types of property the state Treasury.

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