Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Russia may sell control in major state companies

MOSCOW, Nov 24 – Russia may sell controlling stakes in several top state companies oevr the next three years, cutting its participation to 25 percent, Finance Minister Alexei Kudrin said Wednesday.

The Russian government has announced a new privatisation drive that could see stakes in some of the country\’s top state-controlled companies sold off for as much as 58 billion dollars in all.

In three years, "it\’s possible that we will decrease most of the stakes to 25 percent plus one share," RIA Novosti quoted Kudrin as saying.

The government has already approved a plan through 2013 that includes selling stakes of up to 50 percent in some of the country\’s largest state companies, including Rosneft, the Rushydro power generator, the Sberbank and VTB banks, and Russian Railways.

"Depending on how we manage through these three years, we\’ll go further," Kudrin said. "We want to make money from selling control" in these companies.

Until then, the state will retain stakes of 50 percent plus one share in its most important assets, said Kudrin.

Russia largely halted privatisation after the chaotic sell-offs of state-owned resources of the 1990s that critics say handed over large swathes of its huge natural wealth to a clique of insiders at knock-down prices.

But the government has now been forced to reverse this strategy due to the impact of the economic crisis, which plunged the budget into deficit.

The Vedomosti business daily said Wednesday the government is also considering swapping stakes in the Rosneft oil company and Russian Railways with foreign companies as a form of "flexible privatisation."

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...