Kostin proposed to restart privatization Business RusLetter

Western sanctions have destroyed the “supporting elements” of the Russian economy that have developed over the past 30 years. To create a new model of economic growth, one of the sources of funds can be money from the restart of privatization. About it declared chairman of the board of the bank VTB Andrey Kostin in the column for RBC.

According to him, today Russia has three priorities that need to be identified in order to create a new model of economic growth. We are talking about building new logistics corridors and transport infrastructure, creating a system of settlements and payments in rubles and “friendly” currencies, as well as restarting entire industries and strengthening the country’s defense capability.

“Where can I get money? Three answers to one question: restarting privatization; a bolder development use of financial reserves and public debt; redistribution of budgetary funds in favor of the three priorities listed above,” wrote Kostin.

Chapter VTB noted that “today is the time to act”, and added that the resumption of privatization will not only attract funds to the budget, but also “give a powerful impetus to clearing those “bottlenecks” where the willingness to take risks is especially important today.” According to him, such a measure will help strengthen the foundations of market mechanisms, ensure the development of the stock market, as well as form a new generation of managers and create competition.

As an example, Kostin cited the federally owned United Shipbuilding Corporation. He said that in the context of the sanctions, Russia should “many times increase” the capacity of industrial shipbuilding – oil tankers, gas carriers, etc. At the same time, Kostin doubted that the corporation could effectively cope with such a task. According to him, “there are dozens of similar examples.”

After the outbreak of hostilities in Ukraine, the United States and a number of other countries imposed large-scale sanctions against the Russian Federation, which affected many sectors of the economy, including energy, the high-tech sector, aviation, the banking industry, the mining industry, the automotive industry, and others.

March 16, Russian President Vladimir Putin during a speech at the congress of the Russian Union of Industrialists and Entrepreneurs (RSPP) declaredthat the Russian economy is beginning to “develop according to a new model.” The head of state added that now the country has a large number of opportunities for business development and its expansion and urged Russian entrepreneurs should not miss them.