UPDATE 2: Russian govt approves privatization plan for 2017–2019

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MOSCOW, Feb 2 (PRIME) -- The Russian government has approved a privatization plan for 2017–2019, Deputy Prime Minister Dmitry Kozak told reporters Thursday after a government meeting.

A source told PRIME citing the plan that the government plans to cut stakes in the country’s second biggest bank VTB and shipping company Sovcomflot to 25% plus one share; and in uncut diamond mining giant ALROSA to 29% plus one share “with coordination of a sale of the shares owned by the Yakutia republic and in municipal ownership.”

The plan also envisages privatization of Novorossiysk Commercial Sea Port (NCSP), the United Grain Company, diamond cutter Kristall, and Prioksky Non-Ferrous Metals Plant, the source said.

Government sources told reporters that the government also discussed privatization of large assets, including Russian Railways and Russian Post. “Russian Railways, there are certain shares, they are different. The discussion was about VTB, then about Russian Post but a corresponding law is needed for that,” one of the sources said.

Another government source said that there will be no additional government meeting on the issue but the discussion will continue. “Naturally, some questions remain concerning preferred shares of Russian Railways, concerning other companies. We need to continue the work on transformation of Russian Post. The discussion will always continue, including of large assets.”

Two sources with knowledge of content of the privatization plan told PRIME that it does not include reduction of stakes of power utility Russian Grids in six of its eight regional subsidiaries to 25% plus one share.

A draft privatization plan made in October 2016 envisaged reduction of Russian Grids’ stakes in Volga, Siberia, Center and Volga, Center, South and Urals interregional distribution grid companies (IDGC).

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