All fuss of Economic Development Ministry could be just the emotional response of German Gref to the abortive attempt to replace BOD chairman at Aeroflot.
Photo: Alexander Techinsky
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The Second-Round Privatization
Economic Development Ministry will elaborate the president’s ruling to exclude Aeroflot from the list of strategic enterprises, paving the way for making private the top airlines of Russia. But the dates of selling the state-run 51.17 percent in Aeroflot are yet unclear. More likely than not it won’t be sold at all.
Economic Development Ministry will be elaborating the president’s ruling to exclude Aeroflot from the list of strategic enterprises, German Gref told reporters Tuesday, never specifying the dates of submitting the draft to the government or the dates of privatization.
The minister said construction of Sheremetyevo-3 terminal (the project is implemented by Aeroflot subsidiary) will complete next year and the definite proposals on privatization could be discussed after it. “We will lobby privatization,” Interfax quoted German Gref as saying.
The market responded by another surge in Aeroflot quotes. The stocks peaked 7 percent at the start of the yesterday’s trading, but closed 4.8 up percent in the end. Of interest is that Aeroflot soared more than 13 percent in the last three days with the maximum rise posted Monday. The players said it could be the response to Gref’s statement coupled with the leak of insider information.
But the timing of this statement of the minister is interesting. The privatization forecast for 2007 that the ministry is elaborating mentions no Aeroflot in the list of strategic enterprises to be made private. Off-the-record, the bureaucrats explain it was the emotional response of German Gref made in the wake of his failure to replace the BOD chairman at Aeroflot. More likely than not, the lobbying effort of Gref’s ministry in respect of Aeroflot will come to nothing, as the cabinet and president’s administration back up the idea of consolidating state-run assets in airlines on Aeroflot basis.
www.kommersant.com
All the Article in Russian as of Aug. 16, 2006
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