UPDATE: Russian economy ministry to submit rescue plan to govt on Friday

(Adds details in last four paragraphs)

SKOLKOVO, Moscow Region, Jan 29 (PRIME) -- Russia’s Economic Development Ministry will submit an adjusted rescue plan to the government on Friday, Deputy Minister Oleg Fomichyov told reporters on Friday.

“We will submit it to the government this evening, this adjusted plan will be considered by the government, and next week we will readjust it taking into account the position of deputy prime ministers,” he said.

The current adjustments are insignificant, the deputy minister said.

The updated rescue plan may envisage higher state companies’ dividends, he said.

At present, the volume of the crisis bailout plan exceeds the amount of anti-crisis financing envisaged in the federal budget.

LARGE-SCALE PRIVATIZATION

The adjusted plan also foresees a large-scale privatization, Fomichyov said.

Earlier Economic Development Minister Alexei Ulyukayev has suggested selling major banks – Sberbank and VTB that will improve capitalization of the banking sector.

Deputy Finance Minister Alexei Moiseyev said that authorities still consider privatization of Russian oil major Rosneft in 2016.

Finance Minister Anton Siluanov said that the ministry expects to raise 1 trillion rubles from privatization in 2016–2017.

BANKS UNLIKELY TO GET STATE AID

The Economic Development Ministry’s adjustments envisage almost no support to the banks.

In 2015, the Russian government decided to boost capital of Russian banks by about 900 billion rubles. The bulk of the financing was provided to banks of systemic importance.

The non-distributed state aid to the banking sector is estimated at about 25 billion rubles, and the funds are unlikely to be provided to banks in 2016, Fomichyov said.

“Our plan envisages providing the remaining funds to the banks, the capital of which was not increased… This plan item is likely to be excluded,” he said.

(76.4275 rubles – U.S. $1)

End