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. Last Updated: 07/27/2016

Privatization Sales Accelerate

After a slow start, the auctions of privatized state enterprises are finally taking shape with eight enterprises up for sale this month in Moscow and seven to be privatized in Volgograd beginning Monday.


In Moscow, eight enterprises producing everything from sausages to school furniture will sell between 20 and 49 percent of their shares for privatization checks.


The largest enterprise up for sale, the Combi bakery, has 1, 161 employees. Four of the factories are state-owned, the other four belong to the city, said Igor Kupenko, deputy director of Analaiz investment analysis center.


Voucher owners must go to any of 12 investment funds, brokerage companies and advising offices that have been licensed by the city government to advise citizens on the auctions and register their bids. Bidders can state a maximum price at which they will buy shares, or opt to buy at any price.


When the bidding ends, the property fund will enter all the bids in a computer system and then figure out the going rate of the shares in each enterprise. Muscovites have four weeks to bid for the state factories, and two weeks for the city-owned enterprises, Kupenko said.


All the factories stated a nominal value of 1, 000 rubles per share, but previous auctions have pushed up the price of shares to as much as 10 times their face value.


Other Moscow factories to be auctioned include the Presnensky Sausage Factory, the Sokol clothing factory and the Mosstroikonstruktsiya concrete factory. In Volgograd, the International Finance Corporation will kick off seven auctions Monday, including the sale of shares in a garment factory. More factories and enterprises will go on the block later this month, according to spokeswoman Gail Belmuth.


The price of the privatization check on the exchanges and street markets has fallen sharply in recent weeks, as brokers complain that there is still too little to invest in, while nearly all Russians have collected their vouchers.