RS Brief news Development of the Russian Post may be entrusted to foreigners

Development of the Russian Post may be entrusted to foreigners

December 2013

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post

The Ministry of Telecommunications and Mass Communication (Minkomsviazy), which is in charge of the largest Russian postal operator – the Russian Post – proposed to improve efficiency of the later through its corporatization. However, to do this, the Russian Post will first need to be deprived of its status of a strategic enterprise which prohibits its privatization.

Minkomsviazy endorsed its proposal in the draft of a Federal Law on Corporatization of the Russian Post. This Law provides for a transformation of the Russian Post into a joint stock company. Initially, 100% of shares will be transferred to the State represented by Minkomsviazy.

However, deprival of the Russian postal operator of its status of a strategic enterprise will open possibilities not only for its corporatization, but also for further public offering and attracting investments, including foreign investments. The assumption that this is the ultimate purpose of the reform is justified by the fact that Minkomsviazy presents this reform as meant not only to improve efficiency of the postal operator, but to attract long-term investments as well.

So it is quite possible that soon foreign investors will have an opportunity to participate in the Russian postal business. RS