Russian authorities plan to increase revenues from privatisation by 100 times
Pravda Ukraine
The Russian Federation’s Ministry of Finance proposes increasing the planned budget revenue from privatisation agreements by at least RUB 100 billion (approx. US$1.1 billion) in 2024.
Source: Russian Interfax
Quote: “This year’s budget includes a little more than 1 billion roubles in additional revenues and funds from privatisation. We believe the figure should be adjusted, so we set the task to form at least 100 billion roubles,” said Finance Minister Anton Siluanov.
Details: In December 2023, he reported that the Ministry of Finance had submitted a proposal to the government to reduce the state’s stake in several large corporations. This concerns 30 companies in which the state owns more than 50%. The Ministry of Finance proposed reducing the level of participation to a controlling stake.
Quote: “It could be tens, hundreds of billions. The list is in the government, we still have to discuss it,” the minister said.
There are also many companies in which Russia owns less than 100%, with the state being less effective than private investors.
The agency points out that privatisation in Russia in recent years has not been a significant source of funding for the budget deficit: potential large transactions have been discussed but not implemented.
Privatisation generated RUB 29 billion (approx. US$317 million) for the Russian budget last year.
Background:
The Russian authorities intend to change the tax system for individuals and businesses with high incomes so that they pay more to refill the state budget.
In January, it was reported that the Russian Ministry of Finance would spend nearly half of the liquid portion of the National Welfare Fund in 2023, which is the primary source of the country’s resources for a rainy day – 4 out of 9 trillion roubles.
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