Implementation of state property must be economically justified, said President Vladimir Putin, stressing that it is impossible to sell the shares for a pittance, resulting in hostile takeovers of rival companies.
MOSCOW, 1 Feb. Privatization should take into account market trends, you cannot sell shares for a pittance — it is fraught with capture enterprises, said the President of the Russian Federation Vladimir Putin.
“The implementation of state property must be economically justified, appropriate. You need to consider the market situation and market trends… there should be sales of shares for a pittance, at bargain prices. For the budget it will not bring much benefit, besides such a practice is fraught with hostile takeovers of rival companies, and it is ultimately not the best for the market. This, of course, should be avoided”, — said Putin at a meeting on privatisation on Monday.
In the list of participants from top managers of state-controlled companies and banks appear the head of “Rosneft” Igor Sechin, the CEO of “Sovcomflot” Sergey Frank, the head of “Aeroflot” Vitaly Saveliev, President and Chairman of the Board VTB Andrey Kostin, the head of “Bashneft” Alexander Korsik, the President of ALROSA Andrey Zharkov, the head of Russian Railways Oleg Belozerov.
