Russia’s authorities are preparing, for the first time in a long while, to sell a stake in the major state-owned company Sovcomflot in order to find money for the budget.
This year’s deficit stands at 7.3 trillion roubles, and a further more than 15 trillion roubles is expected in 2027–2029, The Moscow Times reports.
Rosimushchestvo has announced the start of selecting organisers for the sale of 7.8% of Sovcomflot shares. Roughly a tenth of the state’s holding, which totals 82.8%, will be put up for sale. Before the full-scale invasion, the company owned the world’s largest fleet of medium-range Aframax-class tankers, as well as 10 icebreakers.
If the shares are sold, Russia’s Finance Ministry could receive about 15 billion roubles. However, the actual proceeds may turn out to be lower. Privatisation revenues will be channelled into the federal budget, where another increase in military spending is planned for next year. It will reach 17.1 trillion roubles, accounting for 35% of all state expenditure, and will rise by a third compared with the 2026 budget law. The Finance Ministry is projecting a budget deficit of 5.4 trillion roubles for next year, despite the third tax rise in three years. In 2028, the budget “hole” is expected to be 5.1 trillion roubles, and in 2029 — 5.2 trillion.
Analysts suggest that Sovcomflot shares could also be sold as part of a non-public deal, in which a pre-selected investor buys the stake off-exchange. If the securities are instead offered on the exchange, the market will struggle to absorb them, as 16% of the shares are currently in free float, and the sale would increase that share by one and a half times.
In May, Russia’s authorities had already announced plans to sell 25% of Aeroflot in the autumn, but a stock-market slump forced them to shelve the idea. Aeroflot shares fell by more than half from January to July and are now trading at around 37 roubles apiece, 35% below their level at the start of the year.