Page 57 - RusRPTDec19

market, with current interest rates for infrastructure projects estimated at key interest rate +3-3.5 percentage points. The market rates are also likely to decline, as tighter stance on NWF spending is likely to ​promote more monetary easing​ on behalf of the Central Bank of Russia (CBR).
Russia’s Finance Ministry is still suggesting cutting the state’s stake to a controlling stake ​in such state majors as Transneft pipeline operator, ​Russian Railways (RZD)​, ​Aeroflot​ national air carrier, R​ osseti​ (Russian Grid) grid major, and ​RusHydro​ hydropower holding, the Deputy Finance Minister Alexei Moiseev told the press as cited by Reuters on November 6. The official did not provide any specifics or timing of possible privatisation. As reported by ​bne IntelliNews,​ the​MinistryofEconomicDevelopmentpreviouslysuggestedtocut stakes​ in RusHydro (61.2% state stake), Transneft (78.55%), ​Sovkomflot maritime shipping (100%), Rosseti (88.04%), ​Rostelecom​ integrated telecom major (45.04%), and United Grain Company grain exporter (50% plus one share). However, the actual sale appears “very very distant”, Moiseev admitted, while reiterating the position of his ministry that 50% plus one share was a sufficient stake to exercise control in any state-owned enterprise (SEO). Moiseev reminded that for several years “the most strategic of all strategic companies” Rosneft oil major has 50% plus one share state participation and that “nothing [terrible] happened”. But privatisation of such companies as Transneft and Russian Railways is still seen unlikely in 2020, but could be possible in 2021, he believes. Previously the Minister of Energy Alexander Novak argued against the privatisation of Transneft, Rosseti, and Rushydro. 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 Sovkomflot 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.
57​ RUSSIA Country Report​ December 2019 ​ ​www.intellinews.com