Russia decides to privatize its industries

A large-scale privatization plan has been approved by the Russian Government. It is designed to reduce, and ultimately eliminate (by FY2015), Russia’s budget deficits. Russia will sell minority stakes in 11 state-owned corporations, including the railways, the merchant marine fleet, 2 banks and Rosnyeft.

Russia will not sell majority-stakes, though. Not now.

This privatization plan will also allow Russia to increase its defense spending by 13% next year, that is, Russia’s FY2011 defense spending will be 13% higher than the FY2010 Russian defense budget.

Russia privatized many industries during the 1990s, but earned little for them,because they were sold at low prices.

But now, Russian corporations are much stronger financially than they were during the 1990s.


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