Russian presidential deputy chief of staff suggests considering denying govt subsidies to non-public companies, Nabiullina supports option

MOSCOW. Dec 4 (Interfax) - Russian Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin at the VTB Russia Calling! forum has suggested considering denying government subsidies to non-public companies, and Central Bank of Russia Governor Elvira Nabiullina has agreed that the option could be considered.

"Going public is a strategic decision for a company after all, not a momentary one. A preparedness to be more transparent. Yes, the key rate affects the moment to go public. We currently see that investors are waiting [amid tight monetary policy], though there have been 19 share placements this year, and this is a record for the last 10 years. The volumes are small," Nabiullina said.

Nabiullina recalled that the figures for companies raising funds of 102 billion rubles from the capital market and 12.5 trillion rubles through loans are incomparable.

"The potential for placements is huge. Additional incentives are needed here. This will not happen on its own, and not only because of the key rate. We are currently discussing them [incentives] with the government, including the reorientation of government support measures so as not to discriminate against the capital market, when subsidies are issued only to attract resources through credit. This will not require an increase in funding [from the budget], and it needs to be reoriented," she said.

"For example, we could deny granting subsidies to non-public companies," Oreshkin suggested.

"This is a possible option. We once considered this, by the way, as part of the government commission on permits to acquire the shares of foreign investors in order to go public with them. [As a condition to approve transactions for foreign investors to exit Russian assets]. It seems to me that we should also return to this topic," Nabiullina said.