UPDATE 2: Russian govt approves 2020-2022 privatization plan

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MOSCOW, Dec 25 (PRIME) -- The Russian government has approved a privatization plan for 2020–2022, a spokesperson for the authority said following a meeting on Wednesday.

“All the issues, considered by the government, have been approved,” the person said.

Deputy Prime Minister Maxim Akimov said that national flagship air carrier Aeroflot and railroad operator Russian Railways were not included in the plan.

“Airport infrastructure - yes (it was included in the plan). As to Russian Railways and Aeroflot, the companies are not on the agenda,” Akimov said.

Agriculture Minister Dmitry Patrushev said that United Grain Company (UGC) is unlikely to be added to the privatization plan.

The Economic Development Ministry said in a statement quoting Minister Maxim Oreshkin that the privatization plan comprises 293 companies of which seven are large, including shipping company Sovcomflot, the country’s second largest bank VTB, Novorossiysk Commercial Sea Port (NCSP), Makhachkala Commercial Sea Port, Kizlyar Brandy Factory, exporter of diamonds and jewelry goods Almazjuvelirexport, and state alcohol producer Rosspirtprom.

The list also includes 1,168 property units owned by the Federal Treasury.

The reduction of state ownership should allow companies to raise money for development. In some companies, privatization would be done through a share issue, the ministry said.

The ministry may add other large companies to the list, but it has to work out an action plan for each company depending on its role in the economy and its readiness for the public market. The ministry will start the work in January–June 2020 together with sectorial ministries, Oreshkin said, as quoted by the ministry.

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