Putin: privatization should be as transparent as possible

Putin: privatization should be as transparent as possible

"The implementation of state property should be economically justified and appropriate. It is necessary to take into account the market situation and market trends... There should be no sale of shares for a pittance and for knock-down prices. It won't bring much good for the budget. Moreover, this practice is fraught with the capture of enterprises by competing companies, which is ultimately not the best variant for the market. It should be avoided," Russian President Vladimir Putin said at today's meeting on privatization, which was attended by the head of Rosneft Igor Sechin, CEO of Sovcomflot Sergey Frank, the head of Aeroflot Vitaly Savelyev, the president and Chairman of the Board Andrey Kostin, the head of Bashneft Aleksander Korsik, the president of ALROSA Andrey Zharkov, as well as the head of Russian Railways Oleg Belozerov.

President noted that it was necessary to determine the specific parameters of privatization in 2016 and decide what packages may be sold to private investors, RIA Novosti reports.

"The process plays an important role in changing the structure of the Russian economy and stimulating private investments. Today we need to determine the specific parameters of privatization in the current year and decide what packages of companies' shares with state participation may be sold to private entities, and which should remain in state ownership," Putin said.

Controlling packages of the backbone state-owned companies should remain in the hands of the state. Putin added: "As a result of privatization, the state should not lose control of strategically important enterprises. I underline, the majority of backbone companies with the state participation should remain in the hands of the state,'' Tass cites the President as saying.

Putin demanded that more attention be paid to the quality of investors, their reputation and experience. "The transition of shares to the private sector is possible only if a buyer has a development strategy for the company,'' the President said. "The new owners of privatized assets should be under Russian jurisdiction. Shady schemes on withdrawal of assets offshore and concealing the owners of shares are unacceptable," Putin said. According to him, the state authorities have been arguing about deoffshorization.

"It is wrong to use new privatization, allowing further offshorization of the Russian economy," Putin said, demanding to ensure maximum transparency of privatization.

"All privatization transactions should strictly comply with the standards and requirements of the law. It is necessary to ensure maximum transparency of these transactions," he said, adding that the deal must be transparent for both the participants and the public.