Russia to privatize $1.2 billion in state assets

Russian Finance Minister Anton Siluanov has announced a plan to privatize state assets this year. The goal is to raise $1.2 billion amid a struggling economy affected by Western sanctions due to the war in Ukraine. The privatization plan includes selling stakes in several state-owned companies, some of which have been seized by the government. Officials hope this move will help fill government funds after many foreign investors left the country. However, critics like Vladimir Milov, a former minister, doubt the effectiveness of this plan. He believes that potential buyers will be hesitant because they won’t have real control over these state-dominated firms. The privatization effort aims to generate revenue for the military and ease the financial challenges posed by the economic difficulties facing Russia. In a recent meeting, Siluanov revealed plans to sell shares in seven large companies, which could bring in around 300 billion rubles, or about $3.66 billion. Experts suggest that the privatization could end up benefiting connected individuals within the government rather than genuinely attracting market investors. They point out that previous attempts at privatization have often fallen short, with little actual progress made. Many industry experts believe that any meaningful privatization will be challenging, given the government’s desire to maintain control over key sectors. The Finance Ministry has added new assets to the privatization list and plans auctions in the second quarter of 2025. However, the actual extent of these privatizations remains uncertain, especially as many of the nationalized companies are linked to Russia's military sector.