State-owned enterprises of Russia

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State-owned enterprises in Russia still play an important role in the national economy. The approximately 4,100 enterprises that have some degree of state ownership accounted for 39% of all employment in 2007 (down from over 80% in 1990).[1][2] In 2007, SOEs controlled 64% of the banking sector, 47% of the oil and gas sector and 37% of the utility sector.[2]

State corporations are established by the Russian government to boost industrial sectors.[3] According to Professor Sergei Guriev, measuring the government’s share of the Russian economy is not easy. "Nor is state ownership limited to large enterprises. The website for the Federal Agency for State Property Management shows that the state has stakes in 2933 companies."[4]

Legal form[edit]

Russian state-owned companies are typically established under the legal form of joint stock companies (OAO or ZAO), unitary enterprises (federal, regional or municipal) or state corporations.[2]

Joint stock companies[edit]

OAO and PAO are forms of open joint-stock companies, while ZAO (and AO) are closed joint-stock companies.[5][6]

The Federal Agency for State Property Management (Rosimushchestvo) is authorized by the Russian government to exercise shareholder rights for federally-owned shares in companies and is responsible for the preparation and nomination of candidates at the annual meetings of shareholders. As a general rule, Rosimushchestvo nominates to a company's board of directors representatives of the most relevant government body, based on the sectoral characteristics of the business. The sectoral state body thus participates in managing the company through its representatives.[7]

Non-profit organizations[edit]

State corporation[edit]

A state corporation (Russian: государственная корпорация) defined by Article 7.1 of NCO Law is a non-profit organization which manages its assets as described in its charter. State Corporations are not obliged to submit to public authorities documents accounting for activities (except for a number of documents submitted to the Russian government) and, as a rule, are subordinate not to the government, but to the Russian president, and act to accomplish some important goal. Control by the Government is implemented on the basis of annual corporation meetings, an annual report on the audit opinion of accounting and financial reporting (accounting), as well as the conclusion of the auditing commission on the results of verification of financial (accounting) statements and other corporation documents. Any other central government departments, organs of state power of subjects of the Russian Federation, and the local governments have no right to interfere in the activities of State corporations.

These state corporations (a non-profit) establishing under a Russian federal law are different from all the other organizations referred to in the mass media as "state corporations". According to the law, a state corporation is wholly owned by the Russian Federation directly, bypassing the Federal Agency for State Property Management.

State company[edit]

A state company (Russian: Государственная компания) defined by Article 7.2 of NCO Law is a non-membership non-profit organization. Each state company is created by a separate Russian federal law.

These state companies (a non-profit) establishing only under a federal law are different from all the other organizations referred to in the mass media as "state companies".

Unitary enterprise[edit]

A unitary enterprise (Russian: унитарное предприятие) is a commercial organization that have no ownership rights to the assets used in their operations. This form is possible only for state and municipal enterprises, operating with state or municipal property, respectively. The owners of the property of a unitary enterprise have no responsibility for its operation, and vice versa.

The assets of unitary enterprises belong to the central government (in which case they are known as federal state unitary enterprises), a Russian region, or a municipality. A unitary enterprise holds assets under the right of economic management (for both state and municipal unitary enterprises) or operative management (for state unitary enterprises only), and that such assets may not be distributed among the participants, nor otherwise divided. A unitary enterprise is independent in economic issues and obliged only to give its profits to the state. Unitary enterprises would have no right to set up subsidiaries, but, with the owner's consent, can open branches and representation offices.

As of January 2017, there are 1,120 federal state unitary enterprises in Russia.[8]

Companies[edit]

Information on the legal form of companies is drawn from the open-data portal of the Federal Agency for State Property Management,[9] unless otherwise stated.

Company Type Industry State ownership
Aeroflot OAO Airline 51.173%[9]
All-Russia State Television and Radio Broadcasting Company Federal SUE Broadcasting
Almaz-Antey OAO Aerospace & Defense 100%[9]
ALROSA PAO Mining 43.9256%[9]
Arkaim OOO Airline
Atomflot Federal SUE Shipping
Bazalt AO Defense
Channel One Russia AO Broadcasting 38.9%[9]
Deposit Insurance Agency of Russia State corporation Deposit insurance 100%
EZAN Federal SUE Telecommunication
FGC UES OAO Energy 75%
Gazprom PAO Oil and gas 50.23%
Gazprom Neft OAO Oil and gas
Inter RAO PAO Electricity
Kamaz AO Automotive
Krasnaya Zvezda State Enterprise AO Nuclear power
Krylov State Research Center Federal SUE Shipbuilding
Mayak Federal SUE Nuclear energy
Mining and Chemical Combine Federal SUE Mining
Moscow Metro Regional SUE Transport
Mosenergo OAO Electricity
Novorossiysk Commercial Sea Port OAO Shipping 20.0001%[9]
Oboronprom AO Aerospace
Research and Development Institute of Mechanical Engineering Federal SUE Rocket engines
RIA Novosti Federal SUE News agency disestablished in 2014
Rosatom State corporation Nuclear energy 100%
Rosenergoatom AO Nuclear power operation
Rosneft OAO Oil and gas 50%
Rosselkhozbank AO Banking 71.9873%[9]
Rossiya Airlines AO Aviation
Rostec State corporation Mixed 100%
Rostelecom OAO Telecommunications 56.8%
Ruselectronics AO Microelectronics
RusHydro OAO Electric utility 60.4%
Rusnano OAO Nanotechnology 100%[9]
Russian Post Federal SUE Letter post 100%
Russian Railways PAO Infrastructure 100%
Russian Satellite Communications Company Federal SUE Telecommunications
Russian Television and Radio Broadcasting Network (RTRS) Federal SUE Transmission towers
Sberbank of Russia PAO Banking 51% (owned by the Central Bank)
Sevmash AO Shipbuilding 48.4966%[9]
Sovcomflot PAO Shipping 100%[9]
Soyuzmultfilm Federal SUE Animation studio
TASS Federal SUE News agency
Techsnabexport OAO Nuclear energy
Transneft OAO Oil and gas 100%
United Aircraft Corporation PAO Aerospace 91.11514696%[9]
United Shipbuilding Corporation AO Shipbuilding 100%[9]
Uralvagonzavod AO Defense 100%[9]
Vnesheconombank State corporation Financial services 100%
VTB Bank PAO Banking 60.9%

Privatization[edit]

Since the first waves of privatization in the 1990s, the Russian government has sold stakes in several companies, often while continuing to hold a significant degree of ownership. In 2016 this included the sale 10.9% of Alrosa,[10] and 19.5% of Rosneft.[11] Privatization plans for the 2017-2019 period include selling stakes in VTB (10.9%), Sovcomflot (25% minus 1 share) and Novorossiysk Commercial Sea Port.[12]

See also[edit]

References[edit]

External links[edit]