russia’s re-privatization push yields 2.5 trillion rubles amid budget crisis

russia’s government is intensifying efforts to re-privatize assets as it scrambles to replenish a budget under strain. In 2024 alone, this strategy generated 2.5 trillion rubles—accounting for 6% of the federal budget. Analysts anticipate that the kremlin’s recently announced “big privatization” will accelerate these efforts.

The findings were discussed during a presentation of the study “Reprivatization in russia and Sanctions Relief: Will putin’s New Gamble Pay Off?” at the Media Center Ukraine. 

“The process unfolding now serves only the authorities’ interests—filling the budget, tightening control over economic processes. The more dire the situation with russia’s budget, the faster these efforts advance,” explained Olha Ivaniuk, Ph.D. in Economics. 

Ivaniuk noted that between 2022 and 2023, these mechanisms contributed 1 trillion rubles to the russian budget. By 2024, that figure had already surged to 2.5 trillion rubles. According to her, this sum represents 6% of russia’s federal budget even before the launch of the so-called “big privatization.”

Analysts predict that as the nation’s economic challenges deepen, these measures will only intensify.

“I mean, they announced the start of a big privatization just two weeks ago, and we expect this process to only gain momentum,” Ivaniuk added.

For more details about the study, please follow the link.

Read more: https://mediacenter.org.ua/news