Russian energy, transport, finance companies among privatisation candidates, says finance ministry

ST PETERSBURG, Russia, June 20 (Reuters) - Russian state-owned companies from the energy, transport and finance sectors will be among the candidates for privatisation, Finance Minister Anton Siluanov said on Friday, as Moscow seeks to raise funds for the federal budget.
Shunned by Western capital since launching the conflict in Ukraine, Moscow has been seeking ways to foster more domestic private investment, increase economic efficiency and, ultimately, bolster budget revenue as Russia spends heavily on the war.
"It is such a delicate issue just now, but I can say that it is energy, transport and finance," Siluanov said at the St Petersburg International Economic Forum on Friday.
"We are interested in attracting new money for the development of companies," Siluanov said. "There are currently difficulties with financing the investment programmes of large corporations."
Officials have for months teased the market with hints about which companies could be candidates for privatisation, without giving concrete names.
In 2010, the finance ministry, then led by reformist Alexei Kudrin, first launched a multi-year privatisation campaign to dispose of state assets, but the scheme ultimately stalled. The state sale of a stake in oil major Rosneft (ROSN.MM), opens new tab was the main deal from that time.
Siluanov suggested resurrecting the dormant privatisation drive in late 2023, submitting a list of 30 company names to the government in a proposal that would see the state keep controlling stakes.
In March, the ministry said the privatisation of stakes in seven large companies next year would raise up to 300 billion roubles ($3.8 billion) for the budget.
Several major Russian firms have complained of the prohibitive cost of borrowing, with interest rates at 20%.
Preparing state-owned companies for initial public offerings (IPOs) would require serious preparation, Central Bank Governor Elvira Nabiullina said.
Russia has also struggled to attract investment in the last few years, with Western companies withdrawing funds and investors from countries friendly to Moscow not yet picking up the slack.
($1 = 78.4000 roubles)

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Reuters

11 hours ago

• Reuters

Trump says he may have to change his mind about firing Fed chair Powell

WASHINGTON, June 20 (Reuters) - U.S. President Donald Trump said on Friday he may have to change his mind about firing Federal Reserve Chairman Jerome Powell. Trump made the comment in a lengthy social media post criticizing the Federal Reserve's decision to not lower interest rates. "I don't know why the Board doesn't override (Powell)," Trump wrote. "Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his Term ends shortly," Trump added. "I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I've tried it all different ways," Trump said.

The Sun

12 hours ago

• The Sun

Families face £20billion tax sting as Government borrowing soars to second highest May level on record

FAMILIES face a £20billion tax hit after Government borrowing jumped last month, experts warned. The second highest figure on record for May, beaten only during the pandemic, saw borrowing surge to £17.7 billion, higher than forecast by the independent watchdog. Receipts for the Treasury were up to £82 billion due to higher income tax and the NI increase that kicked in from April. But with sluggish growth and the high borrowing costs could mean Rachel Reeves could lose her £10 billion financial cushion by the Budget. Thomas Pugh, economist at RSM UK, said the Chancellor may have to raise taxes between £10-£20 billion. He added: 'The under-performance of the economy and higher borrowing costs mean the Chancellor may already have lost the £9.9bn of fiscal headroom that she clawed back in March.' Shadow Chancellor, Sir Mel Stride said: 'Labour is spending recklessly, with no plan to pay for it. "Debt interest now costs us £100bn a year - that's almost twice the defence budget. 'Having turned on the spending taps, Labour have left themselves with only one option and that's to put up your taxes. Treasury Minister Darren Jones insisted the government had 'stabilised the economy and the public finances'. Growth forecast SLASHED in Spring Statement - sparking fears of MORE tax rises 1

NBC News

13 hours ago

• NBC News

Two weeks' notice: Trump's deadline on Iran is a familiar one

President Donald Trump's two-week timeline to decide on whether the U.S. will strike Iran's nuclear sites is a familiar one — it's one he's repeatedly used since his first term in office. 'Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks,' he said in a statement issued through White House press secretary Karoline Leavitt. In the last two months, Trump has promised action on questions or decisions in 'two weeks' over a dozen times — and he used the same timeline repeatedly during his first term in office. 'We're going to be announcing something, I would say over the next two or three weeks, that will be phenomenal in terms of tax and developing our aviation infrastructure,' Trump said of tax overhaul plans on Feb. 9, 2017. He released a one-page outline of the plan 11 weeks later, according to a Bloomberg review that year. He went on to repeatedly cite the time frame for impending actions on health care and infrastructure that never materialized during his first four years in office. Trump's use of the timing prediction has accelerated in recent weeks — and he's used it on items ranging from trade deals and tariffs to the Russia-Ukraine conflict. Much of what he's predicted hasn't come to pass, with questions he's said he'd answer remaining unanswered. The White House did not immediately respond to a request for comment. Two weeks to set rates on tariffs Speaking to reporters in the Oval Office on April 23, Trump said the country was going to have "great deals" on trade. "And by the way, if we don't have a deal with a company or a country, we're going to set the tariff. We just set the tariff. It's something that we think — that will happen, I say, over the next couple of weeks, wouldn't you say? I think so," Trump said. "Over the next two, three weeks. We'll be setting the number. And we're going to pick — could be for China too." Two weeks to decide on continued aid for Ukraine During an April 24 Oval Office meeting with Norwegian Prime Minister Jonas Gahr Støre, Trump was asked if he'd continued providing military intelligence and aid to Ukraine if there was no peace deal with Russia. "Let's see what happens. I think we're going to make a deal, and if we make a deal, it'll be wonderful. We won't have to worry about your question. You can ask that question in two weeks, and we'll see. But I think we're getting very close," Trump said. Two weeks to find out if Trump trusts Putin Asked by reporters on April 27 if he trusted Russian President Vladimir Putin, given the ramped-up attacks on Ukraine while Trump was calling for a ceasefire, the president said, 'We'll let you know in about two weeks.' Two weeks to determine Putin's path in Ukraine In an interview that aired May 4 on NBC's " Meet the Press," Trump was asked by moderator Kristen Welker if he'd misread Putin's position on Russia's war with Ukraine. "No, I'll tell you about in a month from now, or two weeks from now. I have no idea. I can tell you this, he's ... his ambition was stopped to a large extent when he saw that it was me that was now leading the charge," Trump said. Two weeks to set a trade deal with China Trump told reporters on May 4 on Air Force One that he'd be "setting" a trade deal with China. "At some point in the next two weeks or three weeks, I'm gonna be setting the deal. I'm gonna say that such and such a country has had a tremendous trade surplus, surplus their way, with us. They've taken advantage of us in various ways," Trump said. Two weeks to announce tariffs on pharmaceutical companies Asked on May 5 in the Oval Office if he'd made any determination on tariff rates and timing for pharmaceutical companies, Trump said, "I have. I'll announce it over the next two weeks." Asked about those same tariffs on Tuesday, Trump said, "We're going to be doing pharmaceuticals very soon." Two weeks to sign trade deals During a May 6 meeting with Canadian Prime Minister Mark Carney in the Oval Office, Trump suggested a number of trade deals were imminent. "We also have a situation, because everyone says, when, when? When are you going to sign deals? We don't have to sign deals. We could sign 25 deals right now, Howard [Lutnick, the commerce secretary], if we wanted. We don't have to sign deals. They have to sign deals with us. They want a piece of our market. We don't want a piece of their market," Trump said. "So we can just sit down, and I'll do this at some point over the next two weeks." Two weeks to meet Putin and end the war Trump was asked in Abu Dhabi on May 16 when he would meet with Putin to discuss ending the war. "As soon as we can set it up," Trump replied. "And I think in, uh, two or three weeks we could have it be a much, much safer place." Two weeks to set trade terms At a May 16 business roundtable in Abu Dhabi, Trump said he'd soon be setting the terms of the trade deals he wanted, and that Lutnick and Treasury Secretary Scott Bessent would be notifying trading partners. "So at a certain point over the next two to three weeks, I think Scott and Howard will be sending letters out, essentially telling people it won't be very fair. But we'll be telling people what they'll be paying to do business in the United States. They'll essentially be paying to be doing business in the United States," the president said. Two weeks to determine if Zelenskyy is doing a good job Asked on May 19 in the Oval Office if Ukrainian President Volodymyr Zelenskyy was doing enough to help end the war, Trump said, "I'd rather tell you in about two weeks from now because I can't say yes or no. "I think — look, he's a strong person, Zelenskyy, a strong guy and he's not the easiest person to deal with, but I think that he wants to stop. It's a very bad — it's a very bad thing that's happening over there. I think he wants to stop, but I could answer that question better in two weeks or four weeks from now." Two weeks to determine if Putin wants to end the war Trump was asked again if he believed Putin wanted to end the war while taking questions from reporters in the Oval Office on May 28. "I can't tell you that, but I'll let you know in about two weeks, within two weeks. We're going to find out very soon. We're going to find out whether or not he's tapping us along or not. And if he is, we'll respond a little bit differently. But it will take about a week and a half, two weeks," Trump said. Two weeks to send out trade deal offers After touting a preliminary trade deal with China, Trump was asked at the Kennedy Center which country he expected to sign a deal with next. "Well, we're dealing with Japan. We're dealing with South Korea. We're dealing with a lot of them. We're dealing with about 15 countries. But as you know, we have about 150 plus and you can't do that. So we're going to be sending letters out in about a week and a half, two weeks, to countries and telling them what the deal is, like I did with E.U.," Trump responded. Two weeks to decide whether to attack Iran Press secretary Karoline Leavitt began her briefing on Thursday by discussing potential U.S. involvement in Israel's conflict with Iran. "Regarding the ongoing situation in Iran, I know there has been a lot of speculation amongst all of you in the media regarding the president's decision-making and whether or not the United States will be directly involved," she said. "In light of that news, I have a message directly from the president, and I quote, 'Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks.' That's a quote directly from the president for all of you today."