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Putin demands maximal transparency of privatization

February 01, 2016, 16:55 UTC+3

The deals should be transparent for contracting parties and for the public

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© Alexei Nikolsky/Russian Presidential Press and Information Office/TASS

MOSCOW, February 1. /TASS/. Russian President Vladimir Putin demanded to ensure maximal transparency of privatization on Monday.

"All the privatization transactions should strictly conform to norms and requirements of law," the President said at the meeting on economic issues. "Maximal transparency of these deals should be ensured," Putin said.

The deals should be transparent for contracting parties and for the public, the head of state said.

Privatization topics were already discussed with Prime Minister Dmitry Medvedev, the President said. The today’s meeting will determine specific parameters of privatization in 2016 and decide what stakes may be sold and what should remained the government property, Putin said.

Putin demands not to sell government-owned blocks of shares for next to nothing

According to Putin, blocks of shares owned by the state should not be sold for next to nothing or at giveaway prices.

"There should not be any sales of shares for next to nothing, at a giveaway price," the president said. "This will not be of any special benefit for the budget. Furthermore, such practice may give rise to takeover of companies by competitors and this is not the best for the market ultimately. Definitely, this should be avoided," Putin said.

The government should retain control over stakes of strategic state-owned companies, Putin said. "After the privatization the state should not lose control of strategically important enterprises," the President said. "I would like to point out that controlling stakes in strategic companies with state participation need to stay in the hands of the state," he added.

Greater attention should be paid to quality of investors, their business reputation, and the track record, the head of state said. "Privatization of shares is only possible if a buyer has a development strategy for the company to be acquired," he added.

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