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Privatization Programme for 2006 and Main Trend of the Federal Property Privatization for 2006-2008

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Privatization Programme for 2006 and Main Trend of the Federal Property Privatization for 2006-2008 Approved by the Order of the Russian Federation government as of August 25, 2005 № 1306-р Privatization programme for 2006 and main trend of the federal property privatization for 2006-2008 Part I Main trend of the federal property privatization for 2006-2008 1. Purposes and objectives of the federal property privatization programme for 2006-2008 Privatization programme for 2006 and main trend of the federal property privatization for 2006-2008 (hereafter privatization programme) was developed in accordance with Federal law “Privatization of state-owned and municipal property”. Privatization programme is aimed at implementation of the tasks which were conceived in the President's Message to Federal Assembly of the Russian Federation in 2005. Main tasks of the federal property privatization programme for 2006-2008 are the following: − privatization of the federal property which is free from the state duty support; − stage-by-stage reduction of the federal state-owned unitary enterprises; − enhancement of privatization process; − income generation of the federal budget. 2. Anticipation of the federal property privatization influence on structural changes in economy As of June 1, 2005 Russian Federation is owner of 8293 federal state-owned unitary enterprises and stockholder of 3783 joint-stock companies. According to branch of economy, total amount of federal state-owned unitary enterprises and joint-stock companies which shares are belonging to federal property is the following: 1 Amount of joint-stock companies Amount of federal state-owned Branch of economy with the participation of unitary enterprises Russian Federation Non-productive sphere 3617 685 Industry – total 1870 2078 including: Machine-building industry 734 187 Light industry 194 9 Food industry 55 54 Building materials industry 68 19 Metallurgy industry 34 28 Chemical industry 39 46 Agricultural industry 1111 229 Timber industry 67 45 Transport and communications 725 459 Building industry 903 287 Depending on federal stake percentage in authorized capital of joint-stock company blocks of shares are distributed as follows: Amount of shares belonging to federal property Amount of joint-stock (% of authorized capital) companies 100% 413 From 50 to 100% 474 From 25 to 50% 1093 25% and less 1544 Concerning participation of the Russian Federation in management of 259 joint-stock company special right (“gold share”) is used and there are no shares belonging to federal property In 2006 - 2008 blocks of shares of the joint-stock companies created by corporatisation of the federal state-owned unitary enterprises, excluding joint-stock companies included in the list of the strategic enterprises, strategic joint-stock companies (hereafter - list of strategic joint-stock companies) and companies engaging in formation of integrated institutions will be put up for sale. In 2006 the following blocks of shares will be put up for sale: − blocks of shares which percentage is no more than 50% of the authorized capital of corresponding joint-stock companies, excluding those included in the list of strategic joint-stock companies or those engaging in formation of integrated institutions, and also blocks of shares which sale will be performed on the basis of needs of the federal budget income generation in 2006 and for the period till 2008 according to the perspective financial plan; 2 − blocks of shares of joint-stock companies relating to the following branches of economy – gas industry, power building industry, building industry, cinematography and film service, civil aviation, health service industry, chemical, petrochemical and printing industry, geology, fishing industry, poultry industry, plant growing industry, cattle breeding industry, timber industry, medical industry, stakes of foreign economic organizations and machine-building industry (excluding joint-stock companies included in the list of the strategic enterprises); − federal state-owned unitary enterprises relating to civil aviation, geology, oil-and-gas industry, fuel industry, sea and river transport, printing industry, health service industry, plant growing industry, poultry industry and cattle breeding industry. During privatization of enterprises engaging in housing and municipal service which include facilities of electric network, heating network, water and gas network such facilities are planned to transfer into ownership of corresponding constituent entity of the Russian Federation or municipal formation. In 2006 within the framework of federal purpose-oriented program “Reforming and development of military-industrial complex (2002-2006)” creation of integrated institutions in military-industrial complex will be continued. In 2007-2008 all federal state-owned unitary enterprises which do not provide for the fulfillment of state duty of the Russian Federation and blocks of shares of the opened joint-stock companies created by corporatisation of such federal state-owned unitary enterprises will be offered for privatization. Here is the list of federal state-owned unitary enterprises offered for privatization (according to the branch of economy): Amount of federal state-owned Branch of economy unitary enterprises Foreign economic activity 11 Water transport 3 Air transport 8 Geology and industry of precious metals and precious stones 41 Road facilities 60 Railway transport 2 Publishing and printing industry 23 Light industry 1 Timber industry 34 Machine-building industry 11 Medical industry 3 Non-productive sphere 124 Oil-and-gas industry 2 3 Amount of federal state-owned Branch of economy unitary enterprises Military-industrial complex 140 Building materials industry 4 Fishing industry 11 Communication services 8 Building industry 58 Fuel and energy industry 26 Trade industry 6 Coal industry 3 Chemical and petrochemical industry 4 Power building industry 1 Total 885 Here is the list of opened joint-stock companies offered for privatization (according to the branch of economy): Branch of economy Amount of joint-stock companies Motor transport 30 Agricultural industry 69 Foreign economic activity 4 Water transport 11 Air transport 8 Geology and industry of precious metals and precious stones 5 Railway transport 7 Publishing and printing industry 9 Finance and credit 7 Light industry 7 Timber industry 5 Machine-building industry 18 Medical industry 8 Metallurgical industry 3 Non-productive sphere 45 Oil-and-gas industry 3 Military-industrial complex 39 Food industry 1 Building materials industry 6 Fishing industry 1 Communication services 10 Insurance industry 1 Building industry 43 Shipbuilding industry 2 Fuel and energy industry 19 Trade industry 1 Chemical and petrochemical industry 20 Power building industry 1 Total 383 4 3. Anticipation of federal budget revenue after sales of federal property According to anticipation of the Russian Federation socio-economic development for medium-term perspective estimated government revenues after sales of federal property in 2006 totals not less than 31 billion roubles. Part II Federal property offered for privatization in 2006 LIST OF OPENED JSC’S BELONGING TO FEDERAL PROPERTY WHICH SHARES ARE PLANNED TO BE PRIVATIZED IN 2006 Amount of shares Amount of shares which are planned to be privatized belonging to federal № Name of JSC property % of authorized (% of authorized capital) Total amount capital 1. Motor transport 1.1. Transport column 1263, Krasnoyarsk 0,01 1 0,01 Transport column 1745, industrial 1.2. 0,08 1 0,08 community Anna, Voronezh region 1.3. Transport column 1747, Voronezh 0,01 1 0,01 1.4. Transport column 2082, Krasnoyarsk – 1 – 1.5. Autoexpress, Krasnoyarsk 0,09 1 0,09 Balashovavtotrans, Balashov, 1.6. – 1 – Saratov region Ivanovo transport column 1163, 1.7. 100 16850 100 Ivanovo Irkutsk cargo motor transport 1.8. 0,01 1 0,01 enterprise № 2, Irkutsk Passenger motor transport enterprise, 1.9. – 1 – Ishim, Tyumen region Kalmyk operating unit of 1.10. 100 8930 100 technological communication, Elista Motor transport enterprise, 1.11. 100 65534 100 Kolchugino, Vladimir region 1.12. Transport column 1419, Krasnodar 100 178056 100 Passenger motor transport enterprise, 1.13. – 1 – Krasnoyarsk Transport column 1597, Kungur, 1.14. 0,01 1 0,01 Perm region Logistics enterprise, village 1.15. 39,18 668 39,18 Beloyarovo, Amur region Transport column 1490, Novorossisk, 1.16. 100 363971 100 Krasnodar region Transport column 2097, Cossack 1.17. 100 36764 100 village Otradnaya, Krasnodar region 1.18. The Enterprise 1564, Stavropol – 1 – 1.19. Pskovavtosnabservis, Pskov 100 3110 100 5 Amount of shares Amount of shares which are planned to be privatized belonging to federal № Name of JSC property % of authorized (% of authorized capital) Total amount capital Transport column 1316, 1.20. – 1 – Nevinnomyssk, Stavropol region Motor transport enterprise, 1.21. – 1 – Svetlograd, Stavropol region 1.22. Sigma-Transstroy, Moscow 19,97 261000 19,97 Transport column, Slavyansk-on- 1.23. 100 9390 100 Kuban, Krasnodar region 1.24. Stavropolavtotrans, Stavropol 34,2 2053 34,2 Transport column 1295, Timashevsk, 1.25. 100 42132 100 Krasnodar region Service station, Tihoretsk, Krasnodar 1.26. 100 12610 100 region 1.27. Transport agency, Ekaterinburg 49,59 44605 49,59 1.28. Transportnik, Tyumen 100 8510 100 Transport column 1314, Ust-Labinsk, 1.29. 100 23245 100 Krasnodar region 1.30. Tsentrodorstroy, Moscow 25 5811 25 2. Agricultural industry Joint-stock agriculture-industrial corporation for complex arrangement 2.1. of facilities in the Nonchernozem 38,83 254 38,83 zone of the Russian
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