MOSCOW, October 26 (Itar-Tass) — Privatisation should not transfer property from one pocket to another, Prime Minister Dmitry Medvedev said at a government meeting on Thursday, October 25.
“Different options can be considered even though from the legal point of view we have to admit that the property of a joint stock company is private property and everyone should remember this. We are talking about control by the state over equity capital, but property itself belongs to private companies,” he said.
He stressed that the transfer of property into trust management for a long term means quasi disposal. “This is what needs attention because privatisation should be privatisation not an attempt to transfer state-owned property from one pocket to another, for this leads nowhere,” Medvedev said.
At the same time, he noted that attempts by the state go block privatisation deals through legal action can cause relations with the government to worsen.
“If such attempts are made, the management of state-run companies should understand all the consequences for themselves and for relations with the government,” the prime minister said.
Medvedev said earlier he expected proposals shortly regarding access to privatisation of companies.
He stressed that state-owned companies should not participate in privatisation. “But if there are nuances, as we have agreed before, it is necessary to work out and enact rules that will set criteria for access to privatisation,” the prime minister said.
The government's privatisation plan includes more than 850 organisations, such as VTB bank, Sovcomflot, the United Grain Company, RusHydro, Sberbank, Rosneft, Rosagrolizing, Rosselkhozbank, Russian Railways Company, and others.
Russia will continue to privatise state-owned banks after 2015.
According to the privatisation plans, the government intends to reduce its share in Sberbank, VTB and Rosselkhozbank to 50 percent plus one share before 2013.
“Privatisation will proceed on all fronts. In other words, we will sell companies that are directly owned by the Russian Federation, companies that belong to Russian regions, and companies that are controlled by the Russian Federation,” Shuvalov said earlier.
VTB is a backbone Russian bank, which has built an international financial group. VTB Group possesses a unique international network among Russian banks, with over 30 banks and financial companies in 19 countries worldwide. VTB offers comprehensive services to its customers in the CIS, Europe, Asia, and Africa. In the Russian market, VTB Group is ranked 2nd in all major indicators.
Russia may also also privatise the Murmansk, Vanino and Novorossiisk seaports by the end of the year.