German Gref, the CEO of Sberbank, the largest bank in Russia, stated on Friday that the bank would be a good candidate for privatization as the government strives to increase state-owned enterprises’ profitability and reduce expenses.
Privatised Companies
The Russian government holds dominant positions in numerous sizable businesses, such as Sberbank, where it owns fifty percent plus one share. This week, Russian Finance Minister Anton Siluanov stated that the state may be able to reduce its investment in roughly thirty significant enterprises. However, he did not name any of them.
In an interview with Russia 24, Gref was questioned about the proposal and did not mention any companies.
“I generally think that the vast majority of state-owned companies could be privatised, including Sberbank,” stated the politician. “We are a very attractive asset, they will be happy to buy us.”
“If the state at some point in time decided to privatise 25% of Sberbank – and for state control, 25% plus one share is enough – it would increase the investment attractiveness of the Russian market and stimulate the whole financial market.”
Improved Budget Revenues
(Photo: Wikipedia)
Rejected by the capital of the West, Moscow is looking for methods to boost economic efficiency, encourage more private investment domestically, and eventually improve budget revenues while it increases expenditure to finance the war in Ukraine.
One of the biggest banks in Russia, Sberbank, is expected to generate annual profits in 2023, and Gref has confirmed plans to distribute 50% of net profit as dividends.
In addition, he predicted that Sberbank’s earnings will rise in 2024 and 2025. A widespread decline in banking sector profitability is anticipated by the central bank and other big institutions.
