Page 58 - RusRPTDec19

6.1.3​ Budget dynamics - govt funding plans
PM Dmitry Medvedev has approved the finance ministry’s proposed criteria for investing funds from the National Welfare Fund (NWF) in domestic projects. ​The rules are fairly strict. Of the 1.8 trillion rubles ($28bn) projected to be available to spend from the NWF next year, the government will spend 1 trillion ($16bn). To receive NWF financing, an investor must put up 20% of the project costs himself. The share of NWF financing in the project cannot exceed 20%. And the minimum return on investments from the NWF must meet that of the 10-year OFZ (ruble-denominated bond), currently 6.5%. Experts note that, in reality, this means that only projects that don’t actually need funding from the NWF will be able to receive it.
Russia’s largest privatization in three years was agreed on November 28 in a $940 million deal to sell a subsidiary of state-owned Russian Railways. ​A majority stake in Transcontainer, Russia’s largest container transport firm, will be sold to transport conglomerate Delo Group for RUB60bn ($940mn), following a closed auction for the shares on the Moscow Exchange. Russian Railways, which will sell its stake, is Russia’s national rail operator and is wholly-owned by the Russian government. The deal will be Russia’s largest privatization since 2016.
Ukraine’s State Property Fund plans to auction off 147 items in December via the ProZorro electronic system.​ The initial total value of the lots is $11.5mn. Up for sale are: a transport complex in Kryvyi Rih; the Prikarpattya Health Complex in Ivano-Frankivsk; unfinished construction near Kyiv’s Shuliavska metro station; shares in the Mirogoschanskyi Agrarian Institute; and a research plant belonging to the Institute of Materials Science of National Academy of Sciences of Ukraine. So far this year, 511 small-scale
58​ RUSSIA Country Report​ December 2019 ​ ​www.intellinews.com