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Government to continue reducing state’s 'excessive participation in economy'

Dmitry Medvedev said that reduction of state's excessive presence in the economy was a major condition for improving the business climate

GORKI, July 31 (Itar-Tass) - Russian Prime Minister Dmitry Medvedev pledged on Wednesday that work to reduce “an excessive presence of the state in the economy” will continue, but privatization plans will be implemented with due regard for the real situation in the country’s economy.

“It is obvious that the reduction of an excessive presence of the state in the economy is a major condition for improving the business climate and developing a competitive environment,” the prime minister said at a session of the presidium of the council for economic modernization and innovation development under the Russian president.

As examples of such policy he mentioned deals to sell the government’s stake in the Sibir airline company, the Vanino commercial harbor, TGK-5 (Territorial Generating Company Number 5) and the floating of ten percent shares of VTB Bank.

“Work will be continued," he said. "Privatization objectives remain rather tough. Within the next three years, sizable assets will be offered for sale. Plans must be implemented, of course, with due regard for the actual economic situation,” he stressed.

Medvedev added that the end goal of privatization was not only budget revenues, but also the transfer of property to efficient owners. He also mentioned the implementation of "road maps" of the national entrepreneurship initiative. Over 50 legal acts regulating entrepreneurship activity have already become effective. Medvedev stressed that the government assessed the results of this work together with the business community “and the assessment is quite positive.”