Russia's Finance Ministry has proposed the government sell its stakes in the 10 largest state companies and banks to raise 883.5 billion rubles ($29.5 billion) in 2011-2013, a ministry source said on Monday.
"The ministry proposes selling some state-owned shares in 10 state companies and banks, but preserving control over them," the source told RIA Novosti.
The ministry said the move would bring 298 billion rubles to the state budget in 2011, 276.1 billion rubles in 2012 and 309.4 billion roubles in 2013.
The source said that the ministry had suggested selling 27.1 percent in the Tatneft oil company, where the government owns 78.1 percent and 24.16 percent in the Rosneft oil company, where the government has 75.16 percent.
The ministry also suggests selling 25 percent minus one share in Russian Railways, which now fully belongs to the government, and 9.3 percent in the country's top lender Sberbank, in which the state owns 60.3 percent.
The government could also sell 24.5 percent in VTB bank, where it holds a 85.5 percent stake and 28.11 percent in FSK UES electricity grid, where its stake equals 79.11 percent.
A sale of 9.38 percent in RusHydro, where the state owns 60.38 percent, and 49 percent in government-owned Russian Agency for Housing Mortgage Lending could also help fill the coffers, the Finance Ministry source said.
The government may likewise sell 49 percent in the fully state-owned Russian Agricultural Bank and a quarter minus one share in Sovcomflot, also fully state-owned.
The source said the government had not yet decided on the ministry's suggestion.
In June, President Dmitry Medvedev signed a decree cutting fivefold the number of strategic companies, or those which cannot be sold off. The number of strategic joint stock companies was cut to 41 from 208. The number of federal unitary enterprises was decreased to 159 from 230.
Vedomosti business daily quoted PKF Accountants & business advisers analyst Igor Nikolayev as saying it did not look like the government wanted to improve the efficiency of budget funds usage but to sell its remaining property. He added that there was no guarantee that the investor would not buy the stakes for a further resale.
The paper also quoted Icon Private Equity President Kirill Dmitriyev as saying now was a good time to sell as investors will show their interest in developing markets in 2011-2013.
MOSCOW, July 26 (RIA Novosti)
