Wednesday, July 26, 2017

Russian government to reduce stake in Uralvagonzavod

The Russian Federation announced its willingness to sell major stakes in Russian companies by 2016, including the reduction of state ownership to 50 percent plus one share in machine building company Uralvagonzavod.

Although the government has released no fixed date as to the future sales, it has signaled its willingness to sell stakes in nearly 1,500 joint stock companies, including Russian state oil company Rosneft as well as Russia's largest bank, VTB, URBC.ru reports.

As part of the plan, the Russian government will put approximately 200 small and medium joint stock companies up for auction by the fall of 2012. According to Economic Development Minister Andrei Belousov, the sale of the companies alone is expected to yield the Russian government approximately $9 billion.

The privatization plan is expected to include the complete sale of VTB, Rosselkhozbank, Rosagroleasing, Sovkomflot, RusHydro and Inter RAO, and is expected to include the reduction of ownership of Russian Railways, FSK UES and Transneft to 75 percent plus one share. In addition, the government is expected to reduce its ownership of OSK, OAK and Uralvagonzavod to 50 percent plus one share, URBC.ru reports.