(Reuters) - The new Russian government’s revised privatisation plan foresees a raft of asset sales this year and next, with the state set to exit as an owner of some major assets within four years.
The sell-off schedule may prove hard to implement given poor financial market conditions, however, while some politicians and state bosses have been pushing to preserve - and even extend - the state’s hold over the economy.
Following are details:
PHASE 1 - 2012-13
Russia’s largest lender, 57.6 percent-owned by the state, had planned to sell a 7.6 percent stake via a secondary share offering last year, but postponed the plans after a share price slump. The government now hopes to float the stake in 2012 or 2013, but will keep majority state control in the longer term.
Russia’s $10 billion technology fund intends to invest in hi-tech companies and help create a so-called innovation economy. Rusnano is run by Anatoly Chubais, the architect of Russia’s post-Soviet privatisation in the early 1990s. The state owns 100 percent and aims to sell 10 percent in 2012-13.
The government plans to sell 25 percent minus one share in the shipping group by end-2013, with a complete exit expected by 2016. The company owns the world’s largest fleet of Arctic, Aframax and ice-class LNG tankers.
*United Grain Company
Prime Minister Dmitry Medvedev has agreed to sell a 49 percent stake in the state grain trader to Russian investment group Summa for 6 billion roubles ($180 million). A complete exit is planned by 2016, following on from Russia’s deal to join the World Trade Organization.
The Russian diamond monopoly, jointly owned by the government and regional authorities, is the world’s biggest rival to De Beers and has long been touted as an IPO candidate. The state plans to reduce its stake to 50 percent in 2012-13, with a complete exit foreseen by 2016.
PHASE 2 - BY 2016
- COMPLETE EXIT
Russia’s second-biggest bank kicked off the state’s privatisation plan with a secondary listing of a 10 percent stake in London in 2011, raising $3.3 billion. The state now owns 75.5 percent and aims to exit completely by 2016.
The state-owned business leases equipment to the farm sector. The proposed privatisation is one of Russia’s undertakings under its WTO accession agreement and a complete sale by 2016 is planned.
Russia’s fourth-largest bank is a government agent for federal programmes in the farm sector. The bank works with the rural population and has more than 1,600 offices countrywide. The state owns 100 percent, and aims to sell out by 2016.
The flagship airline is in the process of merging with five regional carriers, tightening its grip on the domestic market, after which it should proceed with privatisation. The state owns 51.17 percent and aims to sell it by 2016.
Russia’s biggest hydroelectric power producer is also on the auction block, with the government hoping for a full sale of its 58 percent stake by 2016.
Russia’s largest oil company is already listed following a $10 billion initial public offering in 2006 and the state now wants to sell its 75.1 percent stake by 2016. New CEO Igor Sechin, energy ‘tsar’ in the last government, is pushing back against Rosneft’s privatisation.
Russia hopes to combine the Moscow airport with the smaller Vnukovo, renovate them and sell them off. The state owns 100 percent and aims to sell this by 2016.
The energy explorer develops oil and gas fields mainly abroad, in countries like Vietnam and Cuba. The state aims to sell its 100 percent stake by 2016.
The Russian state electricity holding company is 60 percent owned by the government and other state entities. Mining giant Norilsk Nickel holds a 14 percent stake and minority shareholders 27 percent. The proposed exit by the state is opposed by Sechin, also a former chairman of InterRAO.
- STATE TO RETAIN 50 PCT +1 SHARE:
United Aircraft Corp, a holding company for military and civil aircraft construction, is developing the Superjet 100, Russia’s first passenger plane since the fall of the Soviet Union. The government hopes to reduce its 82.95 percent stake to a bare majority by 2016.
The United Shipbuilding Company accounts for 80 percent of shipbuilding in Russia, building military and civilian craft, and offshore oil and gas platforms. The state owns 100 percent of USC and plans to reduce its stake to a bare majority by 2016.
- STATE TO RETAIN 75 PCT +1 SHARE:
Russia’s rail monopoly is selling off various divisions to private investors while the government plans to offload a 25 percent minus one share stake by 2016 - although boss Vladimir Yakunin is fighting a rearguard action.
Oil pipeline monopoly Transneft was placed on the government’s first privatisation list but was later removed after opposition from management. The state’s stake is 78.1 percent and it aims to sell 3.1 percent by 2016.
The Russian power grid operator is 79.11 percent owned by the government and has been pencilled in for a 4.11 percent stake sale in 2016.
The machine-building company, based in the Urals, is the largest battle tank manufacturer in the world. It is another recent addition to the government’s privatisation list, with the sale of a one-quarter stake pencilled in by 2016. ($1 = 33.24 roubles)
Reporting by Douglas Busvine; Editing by Dan Lalor