Opening the Cabinet meeting, Russian Prime Minister Mikhail Fradkov said that the privatization technologies formed in Russia, need to be modernized.
The privatization tempos should fit the active economic policy in the country, and this made the government start analyzing the issue in-depth. Today the set goals in privatization are rarely met. “The objects exposed for sale, are frequently not sold and passed to the next year plans”.
Currently big privatization deals provide the bulk of the state’s privatization profit (which is about 70 percent from the plan). In 2003 the state earned 91.3 billion roubles on privatization, 56.5 roubles was earned by selling Slavneft and Lukoil companies shares. Totally, for last year only 2,188 federal property objects were privatized out of the 3,926 which had been planned (55.7 percent from the plan).
In his report, Minister of Economic Development Herman Gref said that today 60 outdated federal laws and 16 President’s Decrees are the serious obstacle for efficient privatization process. The Minister said that 10 percent of the state enterprises exposed for sale, try to circumvention the legislation and conduct “hidden privatization”.