The Russian government will present Russian President Dmitri Medvedev a revised list of state companies to be privatized and strategy for privatization by Aug. 1. Russia launched its privatization plan and the related modernization plan at the end of 2009, but enthusiasm for the programs has been so great that Medvedev ordered their expansion. Moscow changed its economic strategy in late 2009 after nearly a decade of economic consolidation during which the Russian government took over most strategic industries. The new strategy aimed at modernizing and expanding the state companies while attracting massive investment. The Kremlin’s goal is to make Russia look attractive to bring in the interested parties, but the Kremlin will still decide which of those parties will actually get the deals on privatization of the strategic firms or modernization investment into the big seven sectors. Despite Russia’s renewed enthusiasm for foreign investment and modern technology, it is still more concerned with national security than with a thriving economy. Russia has learned from its past that if it opens itself up to too much foreign influence, the Kremlin can lose control of the whole system. This STRATFOR interactive graphic highlights Russian companies up for privatization and parties interested in buying shares.
