RUSSIAN GOVERNMENT TO RETAIN OWNERSHIP OF STRATEGIC, RESEARCH, CULTURE AND EDUCATION FACILITIES

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MOSCOW, October 20 (RIA Novosti) - The Russian government will leave in federal property strategic enterprises, science, culture and education facilities, a source in the government has told RIA Novosti on Wednesday.

He said that at a sitting on Thursday the government will approve the list of state-run enterprises and institutions to remain in federal property, as well as a list of enterprises and institutions planned for reorganisation, liquidation or privatisation.

"All colleges and universities, hospitals, research institutions, as well as all the crucial strategic facilities will remain in federal ownership", the interviewee said. "We will not put kindergartens in private hands, either", he added.

He also said that the government has completed stock-taking of federally-owned enterprises and institutions.

Today 18,975 state institutions and 6,485 federal state unitary enterprises (FGUPs), not counting enterprises of the defence complex, are in federal ownership. 9,519 institutions and 1,019 FGUPs will be left as federal property. Another 202 FGUPs and 3,768 state institutions will be passed to the level of federation entities.

"The rest will have to be reorganised in this or that way, liquidated or alienated from federal ownership", the interviewee said.

It is above all enterprises actually lacking budget funding and since long ago engaged in commercial activities. The state has no levers to manage them, he explained.

To him, reorganisation or privatisation of such enterprises will take several years because quality work on them is not to involve more than 1,000 enterprises annually.

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