No major changes in 2014-16 privatization plan – property agency

(Interfax – ST. PETERSBURG, June 22, 2013) The privatization plan for 2014-2016 is actually just an updated plan from 2011-2013, the head of Russia’s Federal Property Agency (Rosimushchestvo) Olga Dergunova said at a Saturday briefing during the St. Petersburg International Economic Forum (SPIEF).

“Essentially, the privatization plan for 2014-2016 is an updated 2011-2013 plan. There were no significant changes, with the exception of Rosagroleasing and Russian Agricultural Bank (RTS: RSHB), which were recommended to be transformed into development institutes, and the addition of Rostelecom (RTS: RTKM). There weren’t any significant fundamental changes,” she said.

OJSC Aeroflot – Russian Airlines (RTS: AFLT) will have to sell off shares and reduce the government’s stake to 50% plus one share in 2013-2014. “In theory, the company is ready to do this at any time,” Dergunova said.

With regards to OJSC Sovcomflot (SCF), Dergunova said the company is at an advanced stage of readiness for privatization.

“A large degree of readiness means that once we understand the market is ready, we’ll begin,” she said, adding that Rosimushchestvo is still against the original idea of conducting an initial public offering (IPO).

Novorossiysk Commercial Sea Port (NCSP) (RTS: NMTP) is also mostly ready for privatization. According to Dergunova, the selection criteria need to be chosen if the state’s stake is to be sold off to a strategic investor.

Addressing Rostelecom’s inclusion in the privatization plan, the Rosimushchestvo chief said that the process of organizing the government’s stake in the company is not yet complete and that it is too early to discuss the structure of the deal.

“Starting in October, we’ll begin discussing approaches in the case that the privatization program is approved and Rostelecom is on the list,” Dergunova said.