The anti-crisis plan of the Russian government: the second attempt

12644755_1022755257761162_8778902876336814254_nOn February 2, 2016 FINAM Financial Information and Analysis Agency  held a conference devoted to discussing Russia’s Anti-crisis plan for 2016. A new plan is to be launched due to collapse in the oil market and depreciation of the Russian currency. There is also a need to adjust the budget of the Russian Federation in 2016, which is assessed with a price of oil at $ 50 a barrel. The 2015 anti-crisis plan anticipated RUB 1.3 trillion to support Russian economy and to reduce by 10% budget expenditures. Extra RUB 1 trillion has been allocated for additional capitalization of the banking system. Now only RUB 750 billion is expected to reanimate Russia’s economy. This time the focus will be shifted from the banking sector to small and medium businesses. Only a point measures are expected to be undertaken to support the financial sector.

EDSG expert Dr. Yury Zaytsev took part in the discussion. In his speech he supported the idea of privatization of the state-owned companies. According to him, the most significant limitation is not the choice of state-owned companies to be privatized, but finding the right investors to meet a number of criteria. The key criteria in this respect are the availability of equity investors, managing the assets in Russia and the availability of development plans. The latter criterion became the most important  in the light of the privatization as a tool for the promotion of structural reforms in the Russian economy, which are so often discussed in recent years.

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