The Ministry of Finance proposed to privatize Rosspirtprom – Vedomosti

Finance Minister Anton Siluanov sent Prime Minister Mikhail Mishustin a proposal to privatize the largest Russian supplier of ethyl alcohol, Rosspirtprom, by the end of the year. About it reported Izvestia with reference to the document.

“To maintain the role of Rosspirtprom JSC as the largest Russian producer and supplier of ethyl alcohol, a more flexible marketing policy, management of sales profitability, and the ability to quickly make decisions on transactions that are significant for the company are necessary,” the department’s documents say.

It is clarified that Siluanov proposed to privatize 100% of Rosspirtprom. According to him, the company’s position in the market began to weaken. If last year Rosspirtprom was the leading manufacturer in the industry with a market share of 46.6%, then already in the first quarter of this year it dropped to 42.5%.

According to the department, this may be due, among other things, to changes in the market structure. In particular, at the end of 2022, the number of independent ethanol producers increased by 84%. As a result of decreased demand from large producers of strong products, in the first quarter of this year, alcohol sales decreased by 15%.

Rosspirtprom is completely federally owned. He owns eight factories in Tula, Novosibirsk, Kursk and other regions. The company specializes in the production of ethyl alcohol and its transportation, as well as the destruction of illegal products.

October 10 Siluanov reportedthat the Ministry of Finance is considering privatization as one of the possible sources of budget replenishment. He admitted that the possibility of selling some state assets without losing control on his part could be considered in 2024.

In April, the chairman of the bank’s board VTB Andrey Kostin offered restart privatization in the country due to the destruction of the “supporting elements” of the Russian economy due to sanctions. In May, Deputy Minister of Finance Alexey Moiseev statedthat large-scale privatization should take place in Russia, but for this a market needs to be formed.

June 15, press secretary of the Russian President Dmitry Peskov reportedthat the issue of privatization is constantly on the agenda, many in the government support it. At the same time, he clarified that privatization “is always the end result,” with the exception of sectors where private business cannot physically ensure the consolidated development of the industry.