Kremlin and Government Coffers

oil prices: In 2009, the last time that oil prices tanked and the government coffers became a bit sparse, the Kremlin talked openly about privatizing a number of state-owned companies, according to The Moscow Times. Impressive sounding plans were released, and officials mouthed the pieties about "attracting investment" and "improving efficiency." Nothing came of this campaign , but it established a precedent that is being repeated. This is particularly true of "privatization," a typically boring and technical term studiously avoided during periods of stability and then suddenly thrust back into the public consciousness during periods of crisis. As the economy experiences a nasty recession and pressure on the government budget mounts, the Kremlin is once again mulling the initiation of a large-scale program of privatization. It no secret that government-owned companies almost always lack the incentives needed for long-term profitability. Both in 2009 and in 2016, the official justification for privatization is familiar: privatization will both raise money to plug holes in the budget and, perhaps even more importantly, will make the economy as a whole more competitive. (news.financializer.com). As reported in the news.