Preliminary step made towards industry restructuring

Published: 3/13/2000

The FSVT has criticised what it describes as the “very poor” management by Russian companies of federal property. It cites the incomplete nature of the state property register and the failure to undertake a market evaluation of the state's property, leading to loss of rent payments. According to Vladimir Andreyev, Head of the FSVT, there is no proper record-keeping of federal property revenues, nor control over the use of federal property. During the first quarter of 2000, the FSVT intends to develop a proposal on how the situation could be improved in the aerospace sector. Managers will be instructed to tighten controls over the use of federal property, to conduct an annual audit of book keeping and to undertake checks of financial and operating activities of state unitary enterprises. Over the course of the year, the FSVT will consult sector participants on how better to manage federal property in Russian airports. The FSVT's comments follow a report and announcement by the minister responsible for state property German Gref in February that the government is considering the transfer of its airline and airport holdings to a new joint stock company covering Russian air transport. The company would initially be wholly owned by the state and include two sub holding companies, controlling airlines and airports respectively. The idea is still at an early stage, but it would seem from the FSVT's remarks that it will be undertaking a sectoral audit, in preparation for change.

Article ID: 1670