By Jupiter Kalambakal

Moscow, Russian Federation

The Russian government will embark on an ambitious privatization plan in 2012 by selling its stakes in state companies such as OAO Rosneft, the country's biggest oil producer, and VTB Group, its second-biggest lender.

From the sell-off, Russia hopes to generate $40.4 billion (1.2 trillion rubles) over the next three years.

Specifically, the government seeks to raise $10. billion (300 billion rubles) in privatization proceeds in 2012, $12.7 billion (380 billion rubles) in 2013 and $15.9 billion (475 billion rubles) in 2014.

The government will sell its 10 to 15 percent share in state-run oil major Rosneft, 10 percent in number-two lender VTB and 25 percent in shipping giant Sovcomflot.

It also plans to put on the market 4.11 percent in Federal Grid Co. of Unified Energy System (FGC UES) and a stake in top hydro power generator RusHydro.

Twenty-five percent minus one share in Sovcomflot will be sold in December and another 25 percent in 2012, government officials said.

Proceeds of the sale will go into the federal budget to finance the government's major capital expenditures and projects.


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World - Russia Eyes Privatization Bid to Raise $40.4 Billion By 2014 | Global Viewpoint