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Privatization is a key to Russia’s economic success - PwC

As economic turmoil spreads across the globe, boosting the private sector would be key for Russia to support the country’s economy, David Gray, managing partner at PwC Russia told RT at the St. Petersburg Economic Forum

“I think Russia needs to move forward in terms of its reform agenda around innovation and modernization and around the role of the state,” David Gray said. “We need to support the private sector to support growth, to support investment and so the polices are likely to be tailored in that direction.”

Meanwhile the uncertain global economic situation is likely to hamper the implementation of reforms, Gray warned. “That will be constrained by the wider economic environment. What happens to the oil price will influence the government’s ability to finance reform but I don’t think we should deviate from the long term direction,” he said.

However, the Russian Government has already sent a positive signal to the markets as it pointed out its commitment to speedup and broaden privatization, he added.

Earlier the Russian Government announced plans to complete the privatization of VTB Bank, Rosselkhozbank, Rosagrolizing, Sovkomflot, Sheremetyevo International Airport, Aeroflot, United Grain Company, Alrosa, Rushydro, and Rosneft, by 2016. Selling state assets is expected to bring $9.4bln in 2012.