Slowing down privatisation again

As reported by The Moscow Times in an article entitled: Minister sees credit risks in Rosneft Privatisation, Energy Minister Sergei Shmatko calls for a delay in the privatisation of Rosneft, alleging the risk of higher borrowing costs if it sells further shares.

This would appear to be another tactic to prevent further transparency at the firm and also to enable the bureaucrats to continue milking the firm for all its worth.

If this trend continues, don’t expect privatisation campaigns to result in any opportunities for widespread share ownership.

It is highly likely that such companies will come on the market if and when the oil price falls again.

However, such moves will help to kill off plans to transform Moscow into an international financial centre, as to date most Russian companies are either state-controlled or controlled by oligarchs with murky pasts and close ties to government.

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