“We need the money.” Putin’s garage sale – IOTW Report

“We need the money.” Putin’s garage sale

MoscowTimes: Back in April, President Vladimir Putin was asked at a press conference why he planned to sell state companies just when the market was at bottom.

Putin’s reply was blunt: “We need the money.”

Russia was, after all, in a bind. A deep recession and plunging oil prices meant tax revenues were dwindling. Putin was unwilling to borrow to finance a growing budget shortfall. So his ministers drew up plans to privatize assets worth 1 trillion rubles ($15 billion).

The largest privatization since the 1990s, it would be enough to cover around two-fifths of the planned budget deficit of 3 percent of GDP.

Still, many had their doubts. Putin has never been keen to privatize. And he insisted that despite rock-bottom company valuations, there should be no sales at knockdown prices.

But on July 11, the first sale was completed. The government successfully sold a 10.9 percent stake in Alrosa, the world’s largest diamond miner, for 52.2 billion rubles ($816 million).  MORE

h/t Whatever

13 Comments on “We need the money.” Putin’s garage sale

  1. Set aside about 10,000 rounds of that Wolf brand 7.62×39, Vlad. And I expect a great discount for giving you more respect than I give your bitch 0bama

  2. They said, “Putin was unwilling to borrow to finance a growing budget shortfall.”

    IOW, Putin didn’t want to mortgage his children’s future by printing billions of fairy dust rubles. Good for him-in the long run, what he’s doing is a win-win for Russia.

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