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Privatization Must Be Expedited, says Voloshin

29.04.2016 14:27 / TASS

Privatization in Russia must be expedited as it is vital for the economy, Head of MIFC Taskforce Alexander Voloshin told TASS.

"I am certain that privatization must be expedited. We need to run privatization this year, and go for more of it in the years to follow. This process should be incremental, reaching the point where the state share in the economy is down to a reasonable minimum", he pointed out. Voloshin is positive that 'the right time' will never arrive.

"The time is never right for privatization. There is always an election coming up, or just over, or the market is bad, or we hit crisis times, there is always a reason to put off privatization until a better time. The way I see it, privatization in and of itself, whenever it happens, is a much more serious boost to the economy and infrastructure than the immediate fiscal effect of asset sell-off", he said.

The expert said privatization brings a lot more than simply fiscal benefits.

"It has a positive systemic effect on economy. Privatization improves asset quality. State-owned companies may struggle to cut costs by a few per cent, while similar private companies find ways of cutting costs by a few dozen per cent. Privatization boosts competition in any marke and squashes corruption. This impact is vital for our economy, definitely more important than squeezing money for the budget", stressed Voloshin.

Non-state Pension Funds industry reformProject Group №1Alexander Voloshin