Russia has revealed that it plans to sell off £20bn worth of assets to China’s state investment funds.
If the sales go ahead, it will be the biggest sell-off of state assets since the beginning of the 1990s. Over the coming three years, Russia plans to sell shares in 10 major companies in order to fill budget gaps.
Last week Kremlin officials announced that they are to sell a 24% stake in Rosneft, a Russian oil producer, and a 9% stake in Sberbank, a Russian funds lender, with more sales to follow.
Other companies expected to be sold include a 27% stake in state oil pipeline Transneft, a 24% stake in Russian bank VTB and a 25% stake in rail company RZhD.
The country is hoping to reduce its deficit to 4% of GDP next year and cutting it further to only 2.9% in 2012. Currently it stands at 5%, about US$80bn, and the presidential election in 2012 means that the government is hoping to spend further in order to keep voters happy.
ACQ Magazine