This document was drafted by the Ministry of Economic Development in accordance with Federal Law On the Privatisation of State and Municipal Property and in execution of Presidential Executive Order No 596 of May 7, 2012 On Long-Term State Economic Policy.

Under Sub-Clause C of Clause 1 of the Executive Order, the planned forecast stipulates the complete withdrawal of state capital from non-commodity sector companies, which lack the status of natural monopolies and military-industrial companies, up to 2016.

With due consideration for the Executive Order’s provisions, the document includes federally-owned shares of all shareholding companies and all federally-owned state unitary enterprises meeting the above criteria, with the following exceptions:

•        Legal entities included in the list of strategic shareholding companies and strategic enterprises, which was approved by Presidential Executive Order No 1009 of August 4, 2004. These legal entities will be listed in the planned forecast following a presidential decision on reducing the extent of state involvement in managing strategic shareholding companies or excluding the relevant enterprises from the list of strategic enterprises;

•        Federally-owned minority share parcels of shareholding companies, subsidiaries of parent companies of vertically integrated legal entities, for the purpose of subsequently contributing the shares to the statutory capital of the parent companies of the relevant vertically integrated legal entities;

•       Federally-owned “single” shares of shareholding companies, whose pre-privatisation budget expenses exceed possible federal budget revenue from their privatisation;

•       Other companies, whose privatisation is deemed impossible (also because of  the unfavourable financial-economic situation);

The programme stipulates the privatisation of federally-owned share parcels of 436 companies and 514 unitary enterprises, as well as 94 other federally-owned legal entities, in 2014-2016.

The document also approves the Russian Federation’s plans for the privatisation of federally-owned shares of major companies, which boast leading positions in the relevant economic sectors.

The Ministry of Economic Development believes that the privatisation of federally- owned shares of shareholding companies will make it possible to increase the volume of federal budget revenues, to create conditions allowing companies to enter the market and to change the corporate governance model.

This document was reviewed and approved at a Government meeting on June 27, 2013.