MOSCOW - The process of privatization will be completed in 2008, Senior Deputy Property Minister Alexander Braverman said Thursday. He noted that the privatization of state-owned enterprises would be completed in 2006.

According to Mr. Braverman, the government is on the whole satisfied with the current pace of privatization. Revenues from privatization and the use of state assets are expected to top RUR 131bn (about $4.4bn) in 2003, 50 percent more than initially planned. In particular, budget revenues from privatization will total RUR 90bn (about $3.03bn), dividend revenues will amount to RUR 11.5bn ($386m), and revenues from the lease of state property are expected to be RUR 8.5bn ($285.8m).

The Property Ministry transferred RUR 128bn ($4.3bn) to the federal budget in January-October 2003, 46 percent above plan. Revenues from privatization amounted to RUR 88bn ($2.96bn) during this period. Dividend revenues exceeded RUR 11bn ($370m), and revenues from the lease of state property amounted to RUR 7.8bn ($262m).

The privatization program for 2004 could be expanded. The issue could be discussed in March 2004, after the 2003 privatization report has been approved. According to Mr. Braverman, 1,978 stakes have been transferred to the Federal Fund of State Property for sale. He also said 500 state-owned enterprises had been privatized, and another 300 were next on the list.

The Property Ministry suggests stepping up the process of privatization and simplifying the process of share management. In particular, the Property Ministry suggests that the government should decide on share management in 50 to 100 major companies, while the Property Ministry would decide on all other privatizations.

Analysts say the major part of state assets will be privatized by 2006, according to the State Ministry's new plans, and the government will receive RUR 35-40bn. The projected pace of privatization is assessed as quite realistic, although some reservations have been expressed.