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. Last Updated: 07/27/2016

Clever Schemes

In 1996, the treasury needs 12 trillion rubles ($2.38 billion) from privatization ... In the fourth quarter, stocks in Russia's most attractive companies are set to go to on the block. The federal budget will pull in 3 trillion to 4 trillion rubles from these stock sales and investment tenders.


Any gaps are supposed to be filled through a clever game of budgetary maneuvering: by transferring stock in federal enterprises to those components of the Russian Federation in which the businesses are located. In a perfectly inconceivable manner, the treasury is supposed to amass 5 trillion rubles, although it is well known that pulling money out of one pocket and tucking it into another does not usually help to increase the amount.


Any remaining deficiencies are supposed to be covered through an even more clever scheme: Those who purchase ventures with outstanding budgetary obligations will assume those obligations. So those companies [being sold off] can already consider themselves relieved of their obligations and use the "spare" cash for acquiring new subsidiaries.