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Home > Press > Putin calls for state corporations to gradually make IPOs

Abstract:
Russian President Vladimir Putin said Thursday that state corporations should gradually make initial public offerings (IPOs) once they have become competitive on global markets, ITAR-TASS reported.

Putin calls for state corporations to gradually make IPOs

MOSCOW, Russia | Posted on February 14th, 2008

Speaking at his final annual Kremlin news conference before leaving office in May, Putin said that state corporations could be partially or fully privatized.

"This is a final purpose. We are not going to switch to state capitalism," Putin said.

He reiterated his belief that such corporations should only be created in economic sectors that demand large long-term investments, where "private business is not yet ready." He named defense, shipbuilding and aircraft production as examples of such sectors.

Russia's state corporations are a newly established type of government-controlled companies. The executives of such corporations are appointed and overseen directly by the president, while other state-controlled companies are overseen by the government.

State corporations have already been created or are being created in the nuclear, nanotechnology, oil and gas, aircraft manufacturing, aircraft engine making, airline, banking, shipping, shipbuilding, titanium, bearing manufacturing, residential utilities, and steel industries.

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