On March 18, Russia's finance ministry announced its intention to restart privatization plans for state assets, aiming to sell stakes in seven large companies in the upcoming year to generate up to 300 billion roubles ($3.66 billion) for the federal budget.
Facing a decline in Western investments due to the conflict in Ukraine, Moscow seeks to boost domestic private investment, enhance economic efficiency, and increase budget revenue amid substantial spending on the war.
Finance Minister Anton Siluanov conveyed, "We have had proposals for big privatization," highlighting the importance of revisiting this initiative to stimulate economic growth.
The ministry's attempt to privatize state assets began in 2010 under reformist Alexei Kudrin but faced obstacles. Recently, Finance Minister Siluanov proposed a revamped privatization drive involving the sale of shares in large state-owned companies, while retaining controlling stakes to ease pressure on domestic borrowing markets.
Although specific companies were not disclosed, Deputy Finance Minister Alexei Moiseev indicated discussions centered around seven companies, with potential deals estimated for 2026, projecting revenues between 100-300 billion roubles ($1.23-$3.67 billion).
Siluanov emphasized plans to accelerate privatizations throughout the year, including via court decisions on seized assets, projecting revenue inflow of at least 100 billion roubles in 2025.
The business community expressed apprehensions about potential nationalizations, with Alexander Shokhin from the RSPP highlighting concerns over uncertain property seizure and the lack of recourse against such actions.
Simultaneously, Rosimushchestvo intervened to manage foreign-owned assets unilaterally acquired by Moscow in the past three years, including those previously held by companies like Carlsberg and Danone.