The situation is further complicated by the fact that a number of privatization revenues will be rescheduled for next year. In this respect, Mr. Fradkov said the forecast privatization plan for 2005, considered by the Cabinet, should back budget revenues projections for 2005. The government plans to raise RUR 40bn (about $1.4bn) in privatization revenues in 2005.

For his part, Economy Minister German Gref says the government has an opportunity to fulfill its privatization plan for 2004. In particular, he said only 76 percent of shares available for sale, were put up for sale. 94 stakes were sold, and 125 stakes were not, as they were low-liquidity, minority stakes, which are not in demand.

Mr. Gref also said that the Economy Ministry would develop law amendments in the Autumn of 2004, aimed at simplifying privatization procedures. In particular, this will affect Russia’s cultural heritage assets. The government will also develop amendments allowing for a more effective management of the federal property and better control. In addition, federal state-owned companies based on the right of operative administration, will be transformed into state-run non-profit organizations or joint stock companies.

The Economy Ministry also plans to develop a register of federal property that, according to Mr. Gref, will allow the government to build the principles of privatization on a full scale.