Kremlin comments on future of privatization

The Russian government supports the further privatization of state assets, provided they are not sold off too cheaply, Kremlin spokesperson Dmitry Peskov said on Thursday. The head of Russia’s central bank, Elvira Nabiullina, earlier spoke in favor of privatization.

Peskov said that the topic is “indeed always on [the government’s] agenda,” but added that there are certain industries which cannot be managed effectively by businesses.

The spokesman noted that experts should be consulted in each case before a specific asset is privatized.

“It’s a question of profitability… most important is that the state’s riches are not sold for a song,” Peskov clarified.

According to the Kremlin official, the aim of privatization is to ensure that assets “become more effective [and] create new jobs.”

Speaking at the St. Petersburg International Economic Forum (SPIEF) earlier on Thursday, Bank of Russia chief Nabiullina argued that “privatization is needed, and we have things to privatize without detriment to strategic interests.”

Nabiullina noted that aside from ensuring that more money flows into government coffers, this would help foster entrepreneurship in Russia.

The privatization of state assets began in Russia back in 1992, soon after the collapse of the Soviet Union and its socialist economic system.

However, the Russian state still wields control over a significant share of the country’s economy.

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