The government plans to sell 8% of the company, 35% in VTB and 25% of Russian Railways in the next three years, the draft plan of privatization of Federal property for 2017-2019 (a copy is in). During this period the authorities plan to privatize 509 joint-stock companies, 316 Federal state unitary enterprises (FSUE), the share of the state in 11 limited liability companies, as well as 1049 other types of property of the state Treasury, according to the draft.
The specific terms and methods of privatization is not prescribed and will be determined by the government, “taking into account market conditions as well as recommendations of leading investment consultants,” reads the document. Privatization plan for three years on Friday must be submitted to the Duma together with the draft three-year budget.
In 2017 planned two major deals for the sale of the shares of VTB and Sovcomflot, the plans confirmed today by the Minister of Finance Anton Siluanov. “Next year will provide two major privatization deals — the sale of 11% stake in VTB and the sale of Sovcomflot, who has long been in our plans. I hope next year our plans will be implemented,” he said.
In 2017 will be privatized 10.9 per cent minus one share of VTB Bank, the package is estimated at 95.5 billion rubles Total 2019 the government plans to sell 36% of VTB, reducing the share of the state Bank with current 60,93% to a blocking stake of 25% plus one share. Also in 2017 the government intends to sell 25% minus one share in “Commonplace,” income from the sale is estimated at 24 billion rubles To 2019, the state’s share in Sovcomflot will be reduced from 100% to 25% plus campaign, the document says.
The forecast privatization plans always differed from the actual results. For example, the same “Sovcomflot” was listed in the privatization plan for 2011-2013, and Railways.
In the plan for 2014-2016 was 25% of Uralvagonzavod (UVZ), and United shipbuilding Corporation (USC) was mentioned as a potential target until 2024, but the project for the next three years these companies have. The Ministry is in favour of privatization from 25% to 49% of the shares in Uralvagonzavod, and USC, but in 2017, privatization is hardly possible, said “RIA Novosti” the head of the Ministry Denis Manturov. The Minister opposed the separation of production UVZ on civil and military with the privatization of one of the parts. “Privatization of some part of the civil or military — in any case,” he said.
Until 2019 it is planned to reduce state participation in the authorized capital of ALROSA by another 8% to 25% plus one share. The sale of Federal package should be coordinated with the implementation of the shares held by Yakutia (the Republic is now a little more than 25%, Yakut municipalities is a little over 8%), the document says.
What else are planning to sell
Also within three years to shrink the state’s share:
— “Transneft” — from the current 78,1% to 75% plus one share
— The state transport leasing company, from 100% to 75% plus one share
— Zarubezhneft, from 100% to 90%, and by 2020 — to 50% plus one share
— Railways, from 100% to 75% plus one share
— RusHydro, from 66,8% to 50% plus one share.
In addition, the planned termination of state participation in the capital of Novorossiysk commercial sea port (NCSP), the United grain company (UGC), “Rostelecom” and production Association “Crystal”. NCSP UGC and Rostelecom have already been in the plan for 2014-2016, and the Smolensk plant “Crystal”, Russia’s largest diamond producer, is made in the plan for the first time.
From the draft of a new three-year plan excluded long-term plans to sell shares in the United aircraft Corporation (UAC), Aeroflot, Vnukovo and Sheremetyevo. List of companies plan will be updated, taking into account the results of the work for optimizing the structure of state property, according to the draft document.
From the materials to the project also showed that the government considered the possibility of privatization of “Goznak” (prints banknotes for Russia), but the Ministry of Finance and Ministry of economic development summer have agreed not to include the company in the plan.
“The amendments to the plan can be carried out on the basis of separate decisions of the government of the Russian Federation. Thus, the absence of any of the companies from the past forecast plan means only that the question of their privatization, by the decision of the Russian government, it will be possible to come back later throughout the forecast period,” — said the representative of Ministry of economic development in response to the question of why these companies were not included in the draft forecast plan of privatization for the next three years. The government has not yet responded to the request .
As stated earlier the Minister of economic development Alexei Ulyukayev, the revenues from privatization in the next three years can reach 200-300 billion rubles, the Finance Ministry has budgeted next year’s privatisation proceeds of 138 billion rubles. This week, Deputy Finance Minister Alexei Moiseev in an interview to “Interfax” stated that his office “will try” in the amendments to the draft budget for 2017-2019 for the second reading to take account of revised data on privatization revenues, received from the Ministry of economic development. “It (the assessment of income. — ) much more — about 2.5 times than that now laid down, because in addition to VTB, Sovcomflot, from the proceeds of the transaction on Sistema Shyam Teleservices (Indian “a daughter” MTS. — ) and so-called mass privatization, which was founded and amounted to 138 billion rubles, the Ministry of economic development proposed to add a few large blocks of shares,” he said.
In 2014, there have been two deals with major state assets of 21 billion roubles, is listed in the report of the Agency. Package “inter RAO” 13.76% minus 9 shares were sold to the state “Rosneftegaz” for RUB 18.8 billion, and 100% “Arkhangelsk trawl fleet” for 2.2 billion rubles of the company “Virma” (part of the Northwest fishing consortium). In 2015, revenues from privatization amounted to 7.4 billion roubles: according to the report of the government, money received from sale of minor assets in the framework of the “mass privatization”. None of the major asset has not been sold.
In January—September of this year, Federal budget revenues from privatization amounted to 67.5 billion rubles, follows from the data of the Treasury. In July 2016, the transaction took place for the sale of government of 10.9% through the SPO of ALROSA on the Moscow stock exchange 52,18 billion rubles To the end of this year the authorities expect to rescue another 706 billion RUB due to the implementation of the package of “Rosneft” (the shares may redeem itself “Rosneft”). Funds should go to the budget before the end of this year and the need to impose the budget with a planned deficit. The Directive on the sale of 19.5% stake in oil company is expected early next week, the source said “Interfax”. If the government will not sell shares of “Rosneft” to the end of the year, will have to compensate for this expenditure from the Reserve Fund.