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Key Facts

  • ✓ The Russian state returned to public privatization after a five-year pause.
  • ✓ Dom.RF raised 31.7 billion rubles through its IPO.
  • ✓ The President of the Russian Federation set a goal to double stock market capitalization by the end of the decade.

Quick Summary

The Russian state has resumed public privatization activities after a five-year hiatus. This strategic shift is evidenced by the recent initial public offering of Dom.RF, which successfully raised 31.7 billion rubles.

The renewed focus on state asset sales is driven by the national objective to double the capitalization of the stock market by the end of the decade. This goal was previously set by the President of the Russian Federation.

End of the Privatization Pause

After a five-year period without public offerings, the state has officially returned to privatization. This marks a significant shift in economic policy, moving away from previous restrictions on state asset sales.

The decision to resume these activities is not isolated. It is directly linked to the strategic goal of expanding the domestic stock market. The President of the Russian Federation has set a specific target to double the capitalization of the market by the conclusion of this decade.

The Dom.RF Deal

The catalyst for this return was the public offering of Dom.RF. The entity successfully completed an initial public offering, attracting significant investor interest.

According to the details of the transaction, the IPO raised a total of 31.7 billion rubles. This substantial capital injection serves as a benchmark for future state-led privatization efforts.

Strategic Economic Goals

The timing of the Dom.RF IPO aligns with broader economic directives. The government is actively seeking methods to boost market activity and valuation.

By returning to public privatization, the state aims to:

  • Increase liquidity in the domestic stock market
  • Attract foreign and domestic investment
  • Meet the President's target of doubling market capitalization by 2030

The 31.7 billion rubles raised represents a concrete step toward achieving these macroeconomic objectives.

Conclusion

The Dom.RF IPO signifies the end of a five-year freeze on state asset sales. It represents the beginning of a new phase in Russia's economic strategy.

As the state continues to pursue the goal of doubling stock market capitalization, further privatization deals are expected. The success of this initial offering provides a strong foundation for these upcoming initiatives.