Russian privatisation plans expanded to include VTB bank, Alrosa and Russian Railways

Russian privatisation: The government in Moscow has drawn up plans to sell stakes in the VTB bank (35%), the Alrosa diamond mining concern (8%) and Russian Railways (25%)  over the course of the next  three years, according to a report obtained by Rosbalt. A further 509 joint-stock and 11 limited-liability companies are also to be put up for sale, along with 316 federal state unitary enterprises .
First on the auction block will be Alrosa and VTB  – along with the  petroleum and LNG specialist shipping company Sovcomflot – whose sales have been pencilled in for next year, although the actual process has yet to be determined and will depend on “taking into account the market situation, as well as the recommendations of the leading investment consultants.”
News of the planned privatisations comes weeks after Russian Prime Minister Dmitry Medvedev gave in to pressure from President Putin and signed off on Rosneft’s $5.3bn bid for a controlling stake in the smaller state-owned oil enterprise Bashneft oil – and then instructed the government to sell off its 19.5% share in the larger company by the end of the year. The cash raised by the sales are needed to pay off Russia’s budget deficit which is calculated to be running at almost $30bn, or 3.7% of GDP.

Source: Rosbalt