¥June 1992 ÒState Program for the Privatization of State
and Municipal Enterprises of the Russian Federation for 1992Ó
–5 property classes
1)Objects and enterprises prohibited from
being privatized -mineral and water resources, gold reserve, Central Bank,
telecommunication facilities, military property, objects of cultural & historical heritage
2)Requires consent of Russian government
or one Federation republics, a Deputy Prime Minister, State Property Committee, and
appropriate ministry – weapons production & repair facilities, fuel and energy
complexes, commercial banks, news agencies, nuclear power manufacturing facilities (why do
you think added restrictions were placed on these sorts of objects and firms?)
3)Enterprises having dominant or monopoly
position in national and local markets – education institutions, breweries &
distilleries, air, rail, and water transport enterprises, firms having more than 10,000
enterprises – privatization requires decision of
Russian FederationÕs State
Property Committee after consultation with relevant ministries
4)Enterprises such as pharmacies, public
baths, urban mass transit system – require involvement of local privatization
programs and consent of local property management committees
5)Enterprises and facilities subject to
mandatory privatization
¥Consumer service enterprises, light
industry, food industry, public catering, wholesale and retail trade
¥Money-losing enterprises of all sectors, moth-balled facilities, unfinished
facilities
¥What is money-losing or money-making
under soft-budget constraints
¥ 3
property class missing: state farms (sovkhozy), housing, & land