Russia Adopts Law to Set Up Widespread Privatization
The Russian Parliament adopted privatization laws Wednesday that were more sweeping than similar legislation approved by the Soviet legislature two days before.
The information agency for the Russian Federation, the richest and most powerful of the 15 Soviet republics, described the laws as a step toward a market economy.
“Every Russian will become a proprietor,” it said. “State and municipal enterprises, individual workshops, industries will be privatized. Priority in acquiring shares will be given to those working in the enterprises.”
According to extracts of the law reported by the official Soviet news agency Tass, Russia will issue special bonds worth thousands of rubles starting next year. They will go to residents who could then use them to “buy” state-owned property or start their own business, Tass said.
The Soviet legislature Monday defeated a proposed amendment on issuing such bonds and took other steps to ensure that collective ownership and leasing arrangements had priority over private ownership and foreign investment.
Russian authorities estimate the value of the initial state property to be sold at 200-250 billion rubles ($330 billion to $420 billion at the inflated official exchange rate).
Russia, led by President Boris N. Yeltsin, approved a law legalizing private ownership of land late last year.
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