Key Legislative Reforms dealing with
Destatization & Privatization cont.
¥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