Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Russia Raises Only One-Fifth of Planned Billions From Privatization Drive

A man looks out of a window as a sign with the logo of VTB bank is seen in central Moscow.

Russia's much-discussed, perpetually delayed privatization drive has in five years brought the budget only 21 percent of the sum originally planned, the country's Audit Chamber said in a statement Thursday.

A few major sales were forced through by presidential or government decision — such as the sale of shares in power company Inter RAO and state bank VTB — but the plan as a whole has been weakly implemented, the report found.

Begun in 2010 on the initiative of then-Finance Minister Alexei Kudrin, the drive to reduce the state's role in the economy has been plagued by delays and infighting over which state assets were to be privatized.

Privatization was further postponed in 2014 as market turbulence caused by the crisis in Ukraine and sharp falls in the price of oil sent Russian share prices tumbling.

Sales of shares in state companies brought the budget a total of 256 billion rubles ($4.3 billion) between 2010 and 2014, the statement said. Of that sum, 191 billion rubles ($3.2 billion) came from the sale of shares in major corporations.

The main obstacles to privatization include "low-quality planning and ineffective management of federal property by the state authorities," the report said, citing auditor Maxim Rokhmistrov.

To this day, the government has no approved method for forecasting revenue from privatization, the report said.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more