Thursday 27 June 2013

Russia privatisation: don’t bet on it | beyondbrics

"To nobody’s great surprise, Russia on Thursday revealed that it was cutting in half its target for privatisation revenues for 2014-16.

The government blamed the financial markets. But the truth is that Russian assets are hard to sell at the best of times. The country needs the economic reforms that president Vladimir Putin has often spoken about, including at the recent St Petersburg Economic Forum, but has so far largely failed to deliver.

As Reuters reported, the State Property Agency slashed its 2014 privatisation revenue forecast to Rbs180bn ($5.5bn), down from around Rbs350bn, with similar cuts in 2015 and 2016. The revisions came with an estimate that this year’s privatisation revenues are likely to reach just Rbs60bn, or 14 per cent of their original target."

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