Related Articles
Forward article link
Share PDF with colleagues

Taxation, not privatisation ahead for Russia

The collapse of the Bashneft sale means Russia's government will wring more cash from producers instead

The shelving by the Kremlin of the sale of Bashneft casts doubts about the credibility of Russia's privatisation programme and puts the spotlight back on additional taxation of the energy sector. Ministry of Finance officials had been banking on the sale of a 50% stake in the oil producer, assuming it would rake in about R300bn ($4.8bn) to cover gaps in a budget caused by lower crude prices and sanctions imposed over the Ukraine conflict. The entire privatisation programme, which kicked off in July with the sale of a stake in diamond monopoly Alrosa for $0.814bn, was supposed to bring in R1 trillion ($15bn). But the sale of shipping agency Sovcomflot has also now been postponed until next y

Also in this section
Nigeria's election hangs over energy sector
19 April 2018
Africa's biggest economy is growing again. But next year's vote is stalling reform and investment in its crucial energy sector
Syria: ruthless business as usual
18 April 2018
The joint US-UK-French strikes on chemicals targets in Syria won’t affect the war—but they could damage Trump's image in the region
Elections a new rupture point in Venezuela crisis
16 April 2018
A Maduro loss in May's election could be a turning point, but recovery will be lengthy