Some of the country's largest companies -- including profitable raw materials producers, massive energy concerns and once top-secret military factories -- will hit the auction block in coming months in the final campaign of the Russian voucher privatization program, Deputy Prime Minister Anatoly Chubais announced Wednesday.
"In an unprecedented move, we will present the super-effective, super-profitable firms for the final stage of privatization," said Chubais, who heads the State Property Committee, which is in charge of privatization.
The announcement comes three months before the Russian privatization program -- in which a voucher was distributed to every Russian citizen -- is due to expire on June 30.
Among the offerings will be one of the world's largest nickel factories, Norlisky Nickel, the state gas concern Gazprom, some of Russia's largest oil producers and 69 percent of the country's military factories.
These factories had been withheld from the privatization program largely because of opposition from conservative members of the former parliament and continued opposition from industrialists and the military.
As a result, about 12 million of the 148 million vouchers issued remain unused, and foreign and Russian investors have complained about the quality of the companies that have been offered so far.
As evidence that the larger firms were being auctioned, Chubais said companies with initial capital of 131 billion rubles ($76 million) were sold off in the first two months of 1994, compared with 113 billion rubles in all of 1993.
Chubais announced more than 200 new companies that will be sold off, either nationally or regionally. Fifteen of the companies, Chubais said, would be auctioned off nationwide and have a total charter capital of 331 billion rubles The rate of the voucher, which has a face value of 10,000 rubles, has increased sharply in the past few days in anticipation of the Chubais announcement. It has grown from 31,390 rubles on Monday to 38,182 rubles per voucher Wednesday after spending most the year around 23,000 rubles.
Yet questions remain about the process. In many cases the state will maintain a controlling interest in the companies, with anywhere from 4.5 to 32 percent offered to the public at auction. Other large percentages will go to workers -- a practice criticized because employees sometimes resist the massive restructuring required at large enterprises.
It also is unclear how viable these firms, many of them antiquated Soviet enterprises, will be in a market economy.
Chubais, however, praised privatization, saying it is the only program the Russian government has fulfilled.
"It is the first time the government kept its promises," Chubais said.
He added that after the voucher privatization program ends, the State Property Committee will begin a program to support the newly privatized firms. The committee will also take an active part in real estate and land privatization, Chubais said.
Among the choicest offerings is the Norilsky Nickel factory, which Chubais said was "the biggest factory ever presented for a public sale" in Russia. The plant, to be sold off May 15 to June 15 at a nationwide auction, had hard-currency earnings of $1 billion in 1993.
The firm will present 12.5 percent of shares to the public, leaving 51 percent in the hands of the state.
The company makes 80 percent of Russia's nickel and had been a top-secret enterprise during the Soviet era.
Among the military factories is Russia's oldest arms plant, the Tula weapons factory. The company will be sold off May 16 through June 13 although the State Property Committee did not say what percentage would be sold.
The committee also plans to put up the state gas monopolist Gazprom, with charter capital of 235 million rubles, at an auction April 24-June 1. The company is a major supplier to Western Europe, and reaps substantial earnings.
Among other companies mentioned by Chubais is Vnukovo Airlines, which will offer 29 percent of its shares to the public and Surgutneftegaz, one of the biggest Russian oil companies.
"In an unprecedented move, we will present the super-effective, super-profitable firms for the final stage of privatization," said Chubais, who heads the State Property Committee, which is in charge of privatization.
The announcement comes three months before the Russian privatization program -- in which a voucher was distributed to every Russian citizen -- is due to expire on June 30.
Among the offerings will be one of the world's largest nickel factories, Norlisky Nickel, the state gas concern Gazprom, some of Russia's largest oil producers and 69 percent of the country's military factories.
These factories had been withheld from the privatization program largely because of opposition from conservative members of the former parliament and continued opposition from industrialists and the military.
As a result, about 12 million of the 148 million vouchers issued remain unused, and foreign and Russian investors have complained about the quality of the companies that have been offered so far.
As evidence that the larger firms were being auctioned, Chubais said companies with initial capital of 131 billion rubles ($76 million) were sold off in the first two months of 1994, compared with 113 billion rubles in all of 1993.
Chubais announced more than 200 new companies that will be sold off, either nationally or regionally. Fifteen of the companies, Chubais said, would be auctioned off nationwide and have a total charter capital of 331 billion rubles The rate of the voucher, which has a face value of 10,000 rubles, has increased sharply in the past few days in anticipation of the Chubais announcement. It has grown from 31,390 rubles on Monday to 38,182 rubles per voucher Wednesday after spending most the year around 23,000 rubles.
Yet questions remain about the process. In many cases the state will maintain a controlling interest in the companies, with anywhere from 4.5 to 32 percent offered to the public at auction. Other large percentages will go to workers -- a practice criticized because employees sometimes resist the massive restructuring required at large enterprises.
It also is unclear how viable these firms, many of them antiquated Soviet enterprises, will be in a market economy.
Chubais, however, praised privatization, saying it is the only program the Russian government has fulfilled.
"It is the first time the government kept its promises," Chubais said.
He added that after the voucher privatization program ends, the State Property Committee will begin a program to support the newly privatized firms. The committee will also take an active part in real estate and land privatization, Chubais said.
Among the choicest offerings is the Norilsky Nickel factory, which Chubais said was "the biggest factory ever presented for a public sale" in Russia. The plant, to be sold off May 15 to June 15 at a nationwide auction, had hard-currency earnings of $1 billion in 1993.
The firm will present 12.5 percent of shares to the public, leaving 51 percent in the hands of the state.
The company makes 80 percent of Russia's nickel and had been a top-secret enterprise during the Soviet era.
Among the military factories is Russia's oldest arms plant, the Tula weapons factory. The company will be sold off May 16 through June 13 although the State Property Committee did not say what percentage would be sold.
The committee also plans to put up the state gas monopolist Gazprom, with charter capital of 235 million rubles, at an auction April 24-June 1. The company is a major supplier to Western Europe, and reaps substantial earnings.
Among other companies mentioned by Chubais is Vnukovo Airlines, which will offer 29 percent of its shares to the public and Surgutneftegaz, one of the biggest Russian oil companies.
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