DJ Russia Agrees On 11 Firms For Privatization - Official

MOSCOW (AFP)--The Russian government has agreed a list of 11 state firms, including its largest bank and oil firm, is set to be partly sold off as part of a new wave of privatization, an official said Wednesday.

The list includes Russia's leading bank Sberbank (SBER.RS) and top oil firm Rosneft (ROSN.RS), but contrary to initial expectations it excludes state railways operator RZhD, Alexei Uvarov of the Economic Development Ministry said.

According to Russian press reports, the sales are expected bring the budget around 300 billion rubles ($10 billion) each year between 2011-2013 for a total of RUB883.5 billion.

Uvarov, head of the department for asset relations at the ministry, said the list had been agreed by his ministry and the Finance Ministry, the RIA Novosti news agency reported.

The drive marks a major reversal of Russia's policy on state-owned firms, after largely mothballing privatization over the last years after the chaotic early post-Soviet sales of state assets in the 1990s.

Also included in the privatization drive would be national energy pipelines operator Transneft (TRNFP.RS), state bank VTB (VTBR.RS) and hydroelectric power operator Rushydro (HYDR.RS), he said.

Uvarov didn't give further details but press reports have said Finance Ministry plans envisage selling 27.1% of Transneft, 24.16% of Rosneft and 9.3% of Sberbank. All these companies have already been part-privatized. The state would keep a controlling stake in all the firms under the plan.

It is expected that proceeds from the sales would be used to shrink Russia's budget deficit, which ballooned during the economic crisis after years of surpluses in the good times.

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(END) Dow Jones Newswires

July 28, 2010 11:45 ET (15:45 GMT)