Econ min says reduction of state control in economy still on agenda

MOSCOW, Dec 12 (PRIME) – Reduction of state participation in the economy is still on the government’s agenda, but privatization is not a goal in itself, Economic Development Minister Maxim Oreshkin said on Wednesday at a meeting with the Association of European Businesses (AEB).

On Monday, Audit Chamber’s Head Alexei Kudrin said that the government had stopped discussions of the idea of curbing the share of state ownership in the economy as the budget for the next three years includes privatization revenue of only 24 billion rubles, the lowest since 2000.

Oreshkin said that the government privatized companies in 2016 to plug in budget deficit, while the 2018 budget may have a surplus of about 3% of gross domestic product (GDP).

“Given the situation, we don’t have the goal of selling this or that asset fast, our goal to help the asset to develop more actively through attraction of strategic partners,” he said, adding that demand is also important in the privatization process.

“If large investors have substantive interests in Russian assets that the government currently owns, then we will study the issue from the point of view of reduction of state ownership or attraction of strategic partners or a wider range of investors into this or that asset.”

The government and the central bank are working hard looking for strategic partners all around the world for some state assets, he added.

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