Russia: government to sell stake in Iskitimtsement

Russia: government to sell stake in Iskitimtsement
Published: 26 March 2010

The Economic Development Ministry plans to raise over RUB500m (US$16.9m) from selling government stakes in five companies in 2010, the ministry said in a report Thursday.

Specifically, the funds are expected to be raised from selling a 25.5% in cement producer Iskitimtsement, a 25.1% stake in power producer Territorial Generating Company-5 (TGC-5), 13.1% in insurer Rosgosstrakh, 100% in subway construction company Mosmetrostroy, and 100% in salt producer Tyretsky Solerudnik.

Alexei Uvarov, a department director at the Economic Development Ministry, said earlier in the day that the federal budget was expected to gain only about 18 billion rubles from privatization in 2010. Revenue of RUB100bn, as was announced earlier, is possible only if some assets from a reduced list of strategic companies currently being approved by the president are included in the 2010 privatization plan, he said.

The ministry is proposing including a total of 28 companies in the privatization plan for 2010 which are currently not on the shortened list of strategic companies.