Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
27.06.2011

Statements of Deputy Head of the Government of the Russian Federation – Finance Minister of the Russian Federation A. Kudrin

 

Kudrin: Russia to sell controlling stake in Aeroflot in 3–5 years

MOSCOW, Jun 27 (PRIME) -- The Russian government plans to sell a controlling stake in national flag carrier Aeroflot Russian Airlines within three–five years, Deputy Prime Minister and Finance Minister Alexei Kudrin said, RIA Novosti reported Monday.

At present the government holds a 51.2% stake in Aeroflot, while the National Reserve Corporation owns 18.5%.

Kudrin said the government should sell controlling stakes in key companies. “This concerns the finance and the oil industry. And telecommunications and the transport sector, starting with (shipping company) Sovkomflot and Aeroflot,” Kudrin said.

The government approved a plan to sell stakes in state-owned and state-controlled companies in 2011–2013 in late 2010.

 

Aeroflot to be included in revised privatization plan - Kudrin

MOSCOW. June 27 (Interfax) - Aeroflot Russian Airlines will be included in the expanded list of companies to be privatized in the coming three-five years, Deputy Prime Minister and Finance Minister Alexei Kudrin told journalists.

"We'll prepare a more extensive packet for privatization, which I won't go into too soon, this is a lot of work. However, Aeroflot will likely be a part of it," Kudrin said.

He said that the state would give up control in the majority of the companies that will be included in the expanded list.

Kudrin said that state's exit from economic activities has been decided. "Over the next three to five years, the state should give up control packets in all key companies, which are now our property. This involves the financial sector, the oil sector, telecommunications and transportation companies, starting with Sovcomflot and Aeroflot, as well as others," he said.

Commenting on forecast revenue from privatization, Kudrin said that revenue from the first privatization packet for the next three years should come to around $30 billion. "The amount from the next packet will be about 25%-50% more. This depends on the estimate that still needs to be made," he said.

 

Russia to attract more private investment in next 10 yrs - Kudrin

MOSCOW. June 27 (Interfax) - The Russian government will do much more to attract private investment in the next ten years, Deputy Prime Minister Alexei Kudrin, who is also the country's finance minister, said at a forum organized by Renaissance Capital.

"I think there'll be a swing to the private initiative, to private investors in the next ten years," he said.

The state will be investing less in companies from various sectors, Kudrin said. Privatization will also be stepped up in the next three to five years, so Russia will also receive investment that way. In addition, this step will serve to improve corporate governance and transparency, which will also bring more private investment in.

"The state will be seeking every kopeck, every ruble of investment far more meticulously than it has to date," Kudrin said.

A lot of investment is needed in infrastructure, he said.

"We survived the crisis fairly well, despite the big drop in GDP, which was caused to a significant extent by the fairly one-sided development of our sectors, the oil and gas industry," Kudrin said. But oil production will be stagnant in the next ten years, and "a considerable segment of the economy which has been the driver in the last ten years will not be generating growth," Kudrin said.

"We have to diversify, growth in other sectors has to exceed the average for the economy, it must be 10% or higher," he said.

Both the government and investors have put improving the investment climate at the top of their agenda. "What has to be done to give these investments better protection, make them more predictable?" Kudrin asked.

The government will determine the "key elements of economic policy, the main parameters of the budget, of tax policy" in the coming weeks.

It has, for example, been decided to lower insurance contributions by companies from 34% to 30%. Kudrin told reporters the exact budget shortfall from this cut had not yet been worked out as there might be an additional regressive scale. Not have there been any decisions to cut spending due to the insurance contributions shortfall, he said.