Page 50 - RusRPTOct19

funded portion of the pension system, developed with the central bank, called the guaranteed pension product (GPP). The key difference between the new plan and IPC is that participation will be entirely optional. This was the main sticking point with the IPC, which would have automatically enrolled citizens. In the new system, the state will also guarantee the safety of long-term pensions savings and incentivize citizens and employers to save via tax deductions.
Deputy Minister of Finance Alexey Moisseev announced that the ministry would roll out a proposal to extend the mandatory 50% dividend payout rule for dividends from state-controlled companies to their subsidiaries as well. According to Moisseev, the additional proposal is designed to adjust the dividend base calculation for non-cash items, such as stock revaluations and paper gains. He added that the proposal would be introduced for governmental discussion in the near term.
6.1.3 Budget dynamics - govt funding plans
The draft 2020 State Budget might receive RUB217bn ($3.4bn) in dividend payments from Sberbank, Vedomosti reported on September 24. In 2021 and 2022, the Ministry of Finance sees dividend payments growing to RUB255bn and RUB283bn, respectively. To recap, the Bank of Russia owns 50% +1 share of Sberbank's shareholder capital. Assuming that Sberbank pays 50% of its earnings in dividends (based on the bank's strategy and recent confirmation from management), MinFin's 2019 earnings forecasts come 1.3% below the Bloomberg consensus expectations. Meanwhile, its 2020-21 forecasts are 1.1-1.7% above consensus.
Russian government could cut state's shares in RusHydro hydro energy major (61.2% state stake), Transneft oil pipeline operator (78.55%), Sovcomflot maritime shipping (100%), Rosseti grid operator (88.04%), Rostelecom integrated telecom major (45.04%), and United Grain Company grain exporter (50% plus one share), Reuters and Vedomosti reported on September 30 citing the privatisation programme bill submitted to State Duma. Reportedly, the stakes in some of the most valuable Russian companies could still be sold by 2022 given favourable market conditions, with no further details disclosed. Revenues are projected at RUB18.5bn. Russia’s privatisation programme was re-launched with much fanfare in 2008 after Dmitri Medvedev took over as president, but immediately stalled thanks to the 2008 global financial crisis.
Since 2017 the government and the Ministry of Economic Development has been consistently cutting the privatisation plans, while the new economic growth paradigm announced by President Vladimir Putin for his 2018-2024 term largely focusing on state-driven infrastructure investment.
Some of the companies such as Sovcomflot have been on the privatisation list since 2011, but most recently the government allowed the sale of Transcontainer operator. State-controlled VTB bank is also eyeing the United Grain Company as a basis for an integrated grain exports player.
Reportedly, the Finance Ministry also suggests to put Aeroflot national air carrier on the privatisation list, as well as Russian Railways, the First Channel broadcaster, and other assets.
50 RUSSIA Country Report October 2019 ww.intellinews.com