Kudrin: privatization of oil companies and banks needs to be postponed for 1.5 years

The ex-Minister of Finance, A. Kudrin, suggests postponing the privatization of oil companies and banks for 1-1.5 years. Within this period it is necessary to use the funds of the Reserve fund, he says.

Speaking about oil companies, I would postpone the privatization for 1-1.5 years as at the peak of price fall and continual fall of GDP the value of such companies is very low, he thinks. Primarily the Ministry of Finance plans to hold the privatization of Rosneft as there are no other sources to cover the deficit.

Mr. Kudrin also thinks that the privatization of banks should also be postponed. The value of bank’s capital is very low at the peak of the crisis. In 1.5 years it will be possible to make more on these assets, Kudrin thinks.

The Center of Energy Expertise said that the privatization of the state companies is possible but the President Putin didn’t plan to interfere in this process. At the privatization of large state companies there are a few goals but the main one is to increase the efficiency. It is possible, Putin said mentioning Rosneft.