State corporations have no future - Medvedev
MOSCOW, November 12 (RIA Novosti) - Russian state corporations have outlived their usefulness, have no future and should be reorganized and later privatized, the Russian president said on Thursday.
State corporations that have fulfilled their purpose should be dissolved while those "operating in a commercial, competitive environment" should be restructured as shareholding companies, Dmitry Medvedev said in a state-of-the-nation address to parliament.
He said these shareholding companies "will continue operating in the public sector or will be sold to private investors."
Medvedev has ordered a thorough review of the activity of state-run corporations, stressing special attention should be given to the spending of funds and the use of state property, as well as the corporations' compliance with federal regulations.
Medvedev ordered in July 2008 that a concept be drawn up for reorganizing state corporations as legal and business entities without the special status and privileges they presently have.
At present there are seven state corporations in Russia - the national development bank Vnesheconombank (VEB), Russian Technologies (Rostekhnologii), Rosnano, the Deposit Insurance Agency (ASV), the Fund for Reforming the Housing and Utilities Sector, the Rosatom nuclear power corporation, and Olimpstroi, which is building facilities for the Sochi 2014 Winter Olympics.
In addition, a law was passed in July on the establishment of a state company, Russian Highways (Avtodor), to develop the country's highway network.
