Russian Govt May Delay Assets Sales by Few Months
OREANDA-NEWS. June 25, 2012. The Russian government could delay the sale of certain assets by several months or longer due to an unfavorable economic environment or a deepening of the economic recession, Deputy Prime Minister Arkady Dvorkovich said Monday at a conference.
According to Dvorkovich, the government expects to follow an earlier approved privatization plan of state-held companies. “The dates of deals are to be determined by the government and consultants. If, on the basis of a consultant’s recommendation, we decide to postpone the deal by a few months, this would be the case,” Dvorkovich added.
“Under the current market situation, we will not delay the transactions by more than several months…However, if we face a crisis of the scale of 2008–2009, then we will put it off for a longer period,” Dvorkovich also said, adding that terms would be extended in case the recession stretches over six–nine months.
The government intends to carry out its plans to sell a number of its assets despite the fact that many experts and heads of major state-controlled companies oppose the sales, citing unfavorable market trends.