December 21, 2010

Russia to sell all stocks of United Grain Company up to 2013

The Russian government expects to sell 100% of the United Grain Company's stocks until 2013, said the first Vice Prime-Minister, Igor Shuvalov.

Taking into account that the government will be able to realise the cooperated work with the Company, the Ministry of Agriculture of Russia and sell 100% of stocks till 2013, he said. Also the official does not exclude that during the period of 2013-2015 the government will sell the stocks packet of the State Agro-Industrial Leasing Company "Rosagroleasing" JSC. The packet of 50% stocks minus one stock.

Thus, the government will still own the control packet of stocks of Rosagroleasing, stated I.Shuvalov. Thus, during the following five years, about 25% of the stocks of Russian Agricultural Bank Rosselhozbank may be introduced for the further privatisation.

Sergey Levin, the General Director of United Grain Company, explained that selling of about 50% of the stocks of United Grain Company was in the plan of privatisation for 2012 for a long time, and the plans improvement till 100% by 2013 will not cause any radical changes for the company.

As a reminder, United Grain Company is the government agent, managing the grain intervention fund, and executes the grain market export infrastructure development functions. Levin expects that United Grain Company will be able to save the functions of the government agent, while becoming the property of the private hands. He said that before the beginning of privatisation the company will finish all the procedures by its precapitalisation, which will allow to get the multiplicative effect during the company selling.