The Kremlin has not formally taken a position on the proposal by Andrey Kostin, the head of VTB, to initiate a fresh privatization cycle in Russia, a plan that aims to chart a new growth path amid continuing sanctions. Officials say the matter is currently in the hands of economists and policy analysts, with no official government stance announced to date. One of Kostin’s proposals stands out for its potential to reshape the role of the largest banks in the national economy and to influence financial strategy at a pivotal moment. Kostin argues that VTB, as the second largest bank in the country, has built substantial credibility in the banking sector and can contribute valuable economic insight while supporting the state’s broader fiscal goals. Peskov, the official spokesman for the President, noted that while Kostin’s ideas are receiving attention from policy circles, they are still under review and will be evaluated by experts before any formal decision is made. He emphasized that the Kremlin prioritizes a careful assessment process that weighs long term economic resilience against the immediate pressures created by sanctions. The spokesperson also observed that Kostin’s viewpoints deserve consideration and may offer constructive angles for stabilizing the financial system if implemented with prudence and transparency.
In a related development, Andrey Kostin himself has proposed launching a new stage of privatization to unlock additional funding streams and support growth in key sectors, especially in an environment where external restrictions complicate investment flows. Supporters believe that privatization could bring in capital, improve corporate governance, and attract foreign and domestic capital through calibrated exposure of state assets to private owners. Proponents argue that reshaping ownership stakes could modernize enterprises, accelerate efficiency improvements, and help diversify the economy beyond reliance on traditional energy sectors. [citation attribution]
Meanwhile, the Chief Economist at Expert RA, Anton Tabakh, has offered a complementary perspective on the potential outcomes of resuming privatization under Western sanctions. Tabakh suggests that a cautious re-entry into asset sales might lead to lower prices, potentially expanding the share of private ownership in a way that preserves public sector interests. He notes that selective privatizations could create space for strategic investors while ensuring strategic assets are safeguarded through robust regulatory oversight. The analysis points to a decreasing cost basis for selling assets as foreign participation remains limited, with possible concessions for institutions like VTB to acquire stakes under clear, state-guided terms. [citation attribution]
Experts emphasize that any move toward broader privatization would require a detailed framework, including market protections, transparent procedures, and clear expectations for social and regional development. Observers argue that the government would need to balance immediate budgetary needs with long term public policy goals, such as maintaining financial stability, guarding essential infrastructure, and ensuring employment levels across affected sectors. The discussion underscores the complexity of privatization in a sanctioned economy and the necessity of a phased approach that aligns with macroeconomic objectives and international commitments. [citation attribution]