Russia intends to launch a large privatization program in the coming months, selling minority — and in some cases controlling — stakes in 12-14 of the country’s most strategic and important state-owned companies, as well as pieces of over 5,000 smaller less important assets. (Click here to view STRATFOR interactive graphic outlining Russia's proposed privatization plan.) In total, the Russian government hopes to bring in $50 billion — roughly the entire gross domestic product of neighboring Belarus — over three to five years. This privatization plan is part of a larger restructuring of the Russian economy initiated by Russian Prime Minister Vladimir Putin during his presidency and in order to be effectively completed, will have to carefully balance enormous political and economic pressures. Not least among these challenges will be figuring out how to effectively distribute the funds as well as ensure that no one political faction gains too much from the transactions. In the end, the Russian government must prove to potential investors that these challenges can be effectively managed and that investing in Russia is a safe bet.
