UPDATE: Russian antitrust eyes privatization of Russian Railways’ units ‘16

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MOSCOW, Feb 17 (PRIME) -- Russia’s Federal Antimonopoly Service thinks that some units of state monopoly Russian Railways may be privatized in 2016, Deputy Director Anatoly Golomolzin told PRIME Wednesday.

Earlier in February, Transport Minister Maxim Sokolov said that the government discusses sale of Russian Railwayst. CEO Oleg Belozyorov said that it would be best to privatize no more than 5% of the company.

“The issue may be about privatization of separate companies of Russian Railways’ group,” Golomolzin said. Only the segments which have private competitors should be privatized, he said.

“But the principal is a different thing: privatization should follow a restructuring and establishment of competitive relations. Competitive relations are undeveloped so far, and it is important to understand to what degree privatization may hurt approval of structurally important decisions. We should commensurate that. Anyway, development of competition comes first, and only then privatization,” he said.

A representative for Russian Railways told PRIME that in January–March the company’s board of directors plans to study an updated plan of sales of shares of units in 2016.

Russia’s economic plan for 2016 includes state budget replenishment through privatization although the companies which can be sold have not been named so far. On February 1, Putin ordered the government to finalize the privatization list.

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