To privatise or not to privatise

An article in The Economist says the Russian government’s ambitious plans for privatisation are at risk of becoming an orphan policy. President Vladimir Putin believes in the virtue of state control, especially over strategic industries. And he remains uneasy about renewed economic crisis. It is becoming clear that the cabinet does not have a real preference when it comes to privatisation. The real question is not what is privatised, but how. The state may consider the exchange of energy holdings between Rosneft and Gazprom to be privatisation; or it could count sales to state companies like Russian Technologies. But that does nothing to boost its attractions for foreign investors.

Friday, January 18, 2013