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Saturday, March 17, 2018

Privatization will not help to close holes in the budget

In the list of those enterprises which the state may sell in the near future, there are “sacred cows” with which part first even thought. However, it is doubtful that it will help regions to reduce budget deficits, while the rich subjects of the Russian Federation this measure is unnecessarily.

After the Federal government harbored plans to replenish the depleted budget of means from sale of state assets, to capitalize on the privatization intend and regions. About the expansion plans for privatization in recent times stated several subjects of the Federation, but to achieve the desired with this tool will turn out far not at all. The main barriers are poor choice of liquid assets, the lack of a strategy for the development of enterprises and industries, as well as poor investment climate in some regions of the Russian Federation.

Assets “of marriageable age”

“Most regions are already many years ago parted with the most valuable and liquid assets”

The statements of the authorities about the forced privatization recently entered the regional news agenda so strongly that at the Federal level. Just a few days after the meeting on privatization of state-owned companies with the participation of President Vladimir Putin’s intention to extend the forecast plan for privatization said the government of Tatarstan. For 2016 is included in this document belong to the Republic of the shareholdings of the largest enterprises of the regional fuel and energy complex of PJSC “Nizhnekamskneftekhim” (22,088%), PJSC “Tatneft” (4,31%) and oil refining complex “TANEKO” (9%). In addition, Tatarstan intends to sell its shares in the company “Oboronprom” (4,67%) and Bank “AK bars” (6,31%).

In the Khanty-Mansi Autonomous district from the privatization of state assets this year, expect to gain almost 8 billion roubles. In the sale list of companies, approved in mid-January, two are strategic for your organization’s region – Ugra territorial energy company (UTEC), estimated at 4.3 billion rubles, the company “severavtodor” (nominal value amounts to 3.2 billion rubles). Both of these asset go “marriageable age” for a long time, however, as the new owner for UTEK the County previously considered only state-owned companies – “Russian grids” or “Tyumenenergo”, and the privatization of Severavtodor two years ago was suspended. In addition, the government of KHMAO intends to transfer to private hands 100% of OJSC “Khanty-Mansiysk pharmacy” (396,3 million) and to sell a number of large land plots in the regional centre.

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Jim Rogers: U.S. has dug a hole for themselvesAnother region who planned large-scale privatization of their property, – the Belgorod region. Here in full accordance with the economic specificity of the territory you plan to sell the assets in the APK. This year the region intends to pay for the privatization of 100% of the share capital dairy company “Green valley” (face value – 163,4 million), and 50% of shares of JSC “Belgorod dairy farms” (125 million rubles). In the autumn of last year the management of the Belgorod region have announced plans to capitalize on the privatization of regional property 453,6 million rubles in 2016 and 122,5 million in 2017.

Three of the above-mentioned region are among the most successful subjects of the Federation – accordingly, the assets they plan to privatize, are highly liquid. But the region-“the middle” is forced to sell illiquid Frank. A typical example of the Omsk region, where this year will once again try to sell its stake in an unfinished airport Fedorovka. It was planned to open this year to the 300 anniversary of Omsk, however in 2012 the project was shelved because of problems with financing.

But even if we assume that the Omsk construction together with other objects, which in early February were included in an expanded privatization plan, find a private landlord, then make the Omsk region will be able quite a bit about 230 million rubles. Do much to close this funding deficit of the regional budget for 2016, which amounted to 4.8 billion rubles, is simply unrealistic. “The budget of the Omsk region is not just stressful – it failed”, – commented the Deputy of local legislative Assembly from the Communist Maxim Mikhailenko.

Earn not all


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