Russia » Economics

Russian oligarchs were recommended pay more for privatization

During privatization, Russia earned only the fraction of the money it was supposed to.
Russian Accounting Chamber discovered that the budget of Russia gained only $9.7 frоm privatization of 145,000 Russian state enterprises. This is little money, only in 2003 Russian tourists spent the same sum abroad.

This is the data from the analysis of the privatization results for 1993 – 2003 conducted by Russian Accounting Chamber.

Last week Nobel laureate Josef Stiglits was in Moscow to provide his recommendations on correcting the mistakes of the past. The former Chief Economist of the World bank said that the oligarchs – owners of the major companies dealing with natural resources – must make additional payments to the state budget. Mr. Stiglits recommended the government to take over 90 per cent of the profit earned by the companies exporting natural resources (currently the oligarchs receive 40-50 percent of the profit). Owners of the big companies privatized for little money, could be taxed by “10 per cent of the net profit from initial investment”. Josef Stiglits offers to  mpose this tax on the businessmen selling companies’ assets.
 
 Chairman of Russian Union of Industrialists and Businessmen Arcady Volsky believes that privatization should be made legit through "paying taxes from the property obtained in a dishonest way”. One option for oligarchs is directing this money to fighting poverty. Josef Stiglits objected to Mr. Volsky by saying that the recently introduced “social responsibility of business” would not compensate the unfair deeds of the last decade”.

Chairman of Accounting Chamber Sergey Stepashin is not ready for such radical conclusions. He says that the fact that the country earned little on privatization, does not mean that “the money should be taken back in some way”.


 

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