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| Caucasus/Russia/Central Asia |
| Putin defends decision to renationalise Yukos |
| 2004-12-25 |
| Russian President Vladimir Putin on Thursday defended the effective renationalisation of the core assets of Yukos oil group, arguing that the state had every right to make amends for the flawed privatisations of the early 1990s. Speaking at a three-hour press conference in the Kremlin, Mr Putin said: "You all know very well how privatisation took place here in the early 1990s and how, using various tricks, and sometimes violating the laws, many market participants got hold of state property worth many billions [of dollars]. "Today the state, using absolutely legal market mechanism, is securing its interest. I consider this to be quite normal." Mr Putin has previously insisted that Yukos was pursued because of its failure to pay its taxes. But Thurday's statement provided a new justification for the Yukos saga one that could equally apply to other companies created by the privatisations of the 1990s. Late on Wednesday night Rosneft, the state oil company chaired by the deputy chief of Mr Putin's administration, took control of Yuganskneftegas, Yukos's main production asset accounting for 11 per cent of all Russian oil production. Yuganskneftegas had earlier been bought at auction by Baikal Finance Group, a mysterious bidder. Rosneft, which paid $9.35bn for the oil producer, far less than its market value, is merging with Gazprom to create a giant national company. Mr Putin insisted the auction was in keeping with a Russian law, but many observers said the deal was as murky as the privatisation of the early 1990s... Whatever spin he likes, it doesn't matter. If the state won't guarantee private property, then it won't get private investment like it would have. This will then be called "unfair". |
| Posted by:Anonymoose |
| #1 How about the real reason: It will make him and his chosen oligarchs filthy rich. |
| Posted by: ed 2004-12-25 11:37:51 PM |