Russia: $30 billion for state coffers

Russian state coffers are set for a bumper 2006, as the government prepares to sell stakes in some of the largest state-owned companies.

Companies being prepared for sale include Rosneft, Vneshtorgbank, Gazprombank, Svyazinvest, Fesco and, possibly, Kamaz.

If deals are successfully completed, via a mixture of strategic sales and IPOs, state revenues could benefit by $30 billion, according to Dresdner Kleinwort Wasserstein research analyst Eugene Popov.

“Recent statements by the economy minister and the head of the financial regulator indicate willingness on the part of the government to sell stakes in the largest state-controlled entities, which operate in the energy, banking and telecoms sectors,” he says.