Dispatch: Russian Privatization and Modernization Stratfor

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Analyst Lauren Goodrich examines the reasons behind Moscow's plan to privatize strategic Russian firms.

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Best comment

1. Stas Stan: leave the russians alone... let them steal a bribe quietly...
2. Srd1126: Only an idiot would trust the Russians. They regularly invite foreigners in when it is bad for them then throw them out later.
3. Provakator: Perhaps there is an other angle to this story: Russia is on a verge of an other election. While Mr.Putin had managed to keep oligarchs under control and out of public politics, recent blessing for one of them Prohorov to start his own party and now this privatization might indicate that Putin is forced to make concessions to guarantee support of Russian business elites. It wouldn't be a first time in Russian history that public assets are traded for political support.
4. Marko Kraguljac: According to CATO institute you should not use word "privatization". Instead, you should obfuscate it a bit, if you expect for slaves to swallow it happily and as usual when powerful, in lack of answers, decide to hump them again.
5. baller84milw: Allowing foreign investment (capital flow) is a huge difference to selling a whole business or company to someone from outside Russia. How often do you see Japan doing that? All they do is copy the foreign technology then reproduce and they are on top when it comes to production of electronic technology. Russia should follow the Japanese model.
6. schmoukiz: So the KGB wants also the property deeds for the economy it controls de facto.
7. Provakator: Indeed some interesting developments. I'm not convinced tough that privatization is designed to attract foreign capital. So far the requirements for the participants of auction of Russian Railroads indicates that the government is looking for a domestic partners. Most of plans announced so far call for government keeping controlling share in all but 4-5 companies, considering how hard its for minority shareholders to get their right acknowledged, i don't see western capital rushing to get in.

Dispatch: Russian Privatization and Modernization
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News & Politics	Upload TimePublished on 1 Aug 2011