Russian official says large privatization deals unreasonable now

MOSCOW, Dec 1 (PRIME) -- Large privatization deals are unreasonable right now due to the difficult economic situation, external pressure and volatility at the country’s stock market, Olga Dergunova, the director of Russia’s Federal State Property Management Agency, said Tuesday at a forum.

“The dynamics of foreign markets and the political decision which the government is to take when transferring from the role of a major shareholder to other stakes …. and decisions on sales at a moment when the market does not feel very well – this is a question which the government discusses all the time,” Dergunova said.

“For now, we have noted that it is unreasonable to make such landmark steps under the current economic situation.”

On Monday, Finance Minister Anton Siluanov spoke in favor of privatization of a 19.5% stake in oil major Rosneft and said it could substitute additional expenditures of the Reserve Fund in case of lower budget revenues. Top bank Sberbank CEO German Gref said that he supports full privatization of Sberbank.

Dergunova said that decisions on selling companies must be done individually.

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