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European Bank mobilises advisors for Russian mass privatisations
The Russian Government will be assisted in its privatisation programme by a consortium of advisors organised jointly by the European Bank and the World Bank, both in charge of advising Russia on privatisation since November 1991.
The European Bank decided to sign contracts this week with the management consulting firm Bain & Co., which will make recommendations to strengthen the capacity of Russia's State Committee for the Management of State Property to implement the privatisation programme; and with an international consortium of six companies which will design the programme's strategy and implementation. The six companies of the consortium are: Braxton Associates, Credit Commercial de France, DRT-Inaudit, Touche Ross, White & Case, and BBDO/Countrywide Communications.
The European Bank has arranged for the financing of these contracts from funds made available to it under cooperation arrangements with the Commission of the European Communities.
"The diversity of experience and practical knowledge these companies bring to the task will make a substantial contribution to Russia's ambitious privatisation programme," said Charles Vuylsteke, the European Bank's Head of Privatisation.
The consortium will continue the work under the lead of the European Bank and the World Bank in designing a mass privatisation programme, on the basis of a decentralised approach. It will further develop a voucher scheme, design the role of investment funds, and ensure that the role of privatisation is clearly understood by the Russian population. Seven thousand or more larger enterprises are expected to prepare privatisation plans and to be transformed into joint stock companies by 1 November 1992 under Russia's privatisation programme for 1992, and its Corporatisation Edict of 1 July 1992.
As a part of its advisory assistance to Russia, the European Bank has already developed a database on enterprises and conducted model privatisations for the City of Moscow, to allow the City to prepare a privatisation strategy on the basis of practical experience. The Bank is currently conducting a similar exercise in the City of St. Petersburg. These advisors will foster the speed of assistance to Russia within the framework designed by the European Bank and the World Bank.
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