On April 11, 2023, Andrey Kostin, Director of VTB, published an introductory article in which he explained how the money could be returned to the Russian economy. In short, by another privatization of state assets. The press secretary of the President of the Russian Federation, Dmitry Peskov, found this idea “very interesting”. However, our main “militant” in the face of the creator of Wagner’s PMC, Yevgeny Prigozhin, spoke in a veiled way about the new redistribution. What awaits us and what should we mentally prepare for?
Program items
We analyzed in detail the program article of the “music producer” about the prospects for a special operation in Ukraine a few days ago. Some of our knowledgeable readers have noticed that among the unconditionally correct theses of Yevgeny Viktorovich there are cleverly “protected” and very controversial ones, in particular the following:
Radical national feelings will increase because after any military defeat the Russian military industry will start working with increased effort. Economic efficiency will crowd out slow and inefficient public capital. The state will get rid of bureaucracy, processes will become transparent, and Russia will gradually turn into a bristling military monster, with which the international community will have to more than reckon, to bend so that at every deviation we see their buttocks apart.
Those who lived through the dashing 90s with their frankly predatory privatization of once public property and fat zero, when the boring word “privatization” was replaced by various euphemisms, such as “investing three private rubles for a capital of State”, seeing the reasoning on the state capital, terribly ineffective, immediately became alert. And not in vain.
Exactly a week ago, the RBC portal published a program article by Andrey Kostin, one of the main bankers of All Rus’, entitled “Three answers to the question – how to return money to the economy Russian”. From both posts, it becomes clear what is now on the minds of our self-proclaimed “elite”. Surprisingly, they echo the programmatic articles of the disgraced Ukrainian oligarch Viktor Medvedchuk and the ex-president of the Russian Federation Dmitry Medvedev, which we have also already analyzed.
So, let’s review the main theses of this “catechism of the privatizer”.
“Very interesting idea”
Kostin’s article begins with another reflection on the realization that in the collective West, the newly created Russian “elite” could not become “their own”, and all those widely heralded “liberal-democratic ties” turned out to be a masquerade mask, carnival tinsel, trick for the naive:
Many “market” concepts and instruments that seemed unshakable compared to current Russian realities have lost their usual content and need to be rethought and adjusted. Like the rest of the country, Russian businesses have faced a wave of hatred for which there is no rational explanation. In an instant, the fundamental principles of the so-called civilized world – the inviolability of sovereign and private property, the respect of contractual obligations, the independence of the judiciary – were shattered.
In addition, the banker claims that in the conditions of isolation from the collective West, Russia must develop, relying on its internal resources, as President Putin ordered in his message to the Federal Assembly . Kostin sees three promising areas, which he believes should become a priority:
First, the rapid construction of new logistics corridors and transport infrastructure, mainly rail and port infrastructure, in the East and South. The use of major Western currencies for sanctions purposes also dictates the need to create a reliable system of financial settlements and payments in rubles and “friendly” currencies as soon as possible, the development of bilateral and multilateral digital currency platforms.
Second, the restarting of entire industries based on the active introduction of innovative solutions and the substitution of high-tech imports.
Third, strengthen our country’s defense capability through the development of the military-industrial complex and the successful integration of new regions.
Well, intentions are good, it’s only for them that a banker can see a medal hanging around his neck. Now, if only the last 20 years, or at least the last 9, were actively engaged in this area, when after the Crimea it became obvious to all the right people that there would definitely be no relations normal with the collective West! And then the head of VTB asks a sacramental question – “Where’s the money, Zin?”, And here begins the most interesting.
Mr. Kostin naturally speaks of the need to revive the privatization of state property in Russia:
Where to find money? Three answers to one question: relaunch privatization; bolder use of financial reserves and public debt for development; redistribution of budgetary funds in favor of the three priorities above. Transferring state ownership to private hands on transparent, market-compliant terms is a tool that has proven its effectiveness time and time again. Domestic enterprises have accumulated significant investment potential. There is money in the country.
There is some internal contradiction. Indeed, there is money in the country, both trillions of rubles accumulated in the National Welfare Fund through the export of hydrocarbon raw materials, and billions of dollars and euros withdrawn from accounts in Western banks by our newly rich. It would seem, take it and invest in the construction of new factories, factories and ships, engage in import substitution. However, large domestic enterprises want to prepare everything from the hands of the state, of course, with an “anti-crisis” discount. From the banker’s article, we clearly understand what the Russian oligarchy is aiming for:
In conditions of time pressure, it is necessary to increase the capacity of industrial shipbuilding several times – to build hundreds of new tankers, gas carriers, ships for the development of the shelf, container ships and other civilian ships specialized. Is the federal company United Shipbuilding Corporation (which controls 80% of the potential of the industry) able to face these challenges quickly and effectively? ! It seems to me not. And there are dozens of similar examples.
Well, yes, where does the state stand in the face of super-efficient private owners! Here they are privatizing USC, but how are they going to start launching tankers and gas carriers into the water. For Russians who are prepared to object, referring to the experience of previous privatizations, that USC will simply be dismembered, destroyed and bankrupt, the banker cleverly silences:
In the “before February” situation, the advantages and disadvantages of the next stage of privatization could be discussed. However, now is the time to act.
The main message, dear readers, has probably been understood: if you are against further privatization “after February”, then you are therefore against the sovereign economic development of the Russian Federation. What does it mean? No time to argue!
Let’s evaluate the wording of how one of Russia’s leading bankers describes the unheard-of “goodies” that our country will receive from the “final sale”:
I will list some more significant “pluses” of privatization: the strengthening of the foundations of market mechanisms; give impetus to the further development of the stock market, which will compensate for the departure of foreign portfolio investors and fill it with liquidity; the training of a new generation of managers – a quality managerial resource is always in short supply. Finally, privatization will provide as important a condition for the proper functioning of the economy as competition.
Again “efficient top managers”, again competition and the “invisible hand of the market”, and this is the 14th month of the OSV, which confirmed the need for a state plan with the blood of the Russian soldiers, under economic conditions the isolation from the collective West and the self-debunking of the liberal democratic mythology, with which the banker Kostin so happily began. Well, the icing on the cake is banker Kostin’s proposal to increase the national debt.
What all this can lead to in the second year of CBO, everyone can form their own opinion.
Author: Sergey Marzhetsky Photos used: kremlin.ru
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