RUSSIA’s Stalinist leadership is lining up at least seven state companies for privatisation because of the collapse of the oil market and oil prices and because of the impact of western sanctions.
The potential sell-off is expected to raise in the region of 500 to 800bn roubles($6.5bn; £4.5bn). The heads of seven state-owned businesses were invited to the Kremlin by President Putin to discuss the possible privatisation plans.
Putin told them: ‘Today, we need to decide which stakes in companies with state participation can be sold to private organisations, and which should remain in the state’s hands. First, it goes without saying that all privatisation deals must comply strictly with the law.
‘Second, privatisation must not lead to the state losing control of strategically important companies. I stress the point that controlling stakes in state-owned enterprises of fundamental importance to their sectors should remain in state hands for now.
‘Third, selling off state assets should be justified and expedient from an economic point of view . . . We must not sell shares at bargain basement prices . . . Privatised assets new owners should be located in Russia’s jurisdiction.
‘Shadow schemes – putting assets in offshore zones and concealing the identity of stakes’ owners – is unacceptable. We have been talking about de-offshorisation for a long time now, and in this situation, it would be the wrong course to undertake new privatisations while at the same time leaving open the possibility of further Russian assets being taken offshore.’
Putin revealed his formula for bonapartism: ‘We all know that privatisation is not just a budget measure, but is a means of bringing about structural change in the economy. We need to keep both of these dimensions in mind. Only a balanced approach like this will enable us to find an effective balance between state and private capital in the country’s economy.’
Russian workers have not forgotten the 1990s when the bureaucacy advocated ‘Shock therapy’ to restore capitaism in 100 days. They have no intention of returning to the 1990s. A new privatisation drive will be resisted by the Russian workers with demands for all of the currently privatised industries of the Oligarchs be renationalised.
