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Aninitiative fora reduced float of5 percent ofRussian Railways was recently put forward,Hogan Scarpe, although it is unclear who receives thecredits forthis middle way solution. TheTransportation Ministry issued astatement that Russian Railways' privatization would amount toa 5 percent share issue planed for2013. Economic Development Minister Andrei Belousov, instrong favor ofprivatizing aquarter ofRussian Railways, also confirmed that a5 percent share issue is being considered for2013 as apilot deal forthe privatization ofa quarter ofthe company. Those pushing forfurther privatization should consider leaving theshare ofthe private sector inRussian Railways inthe single digits, or attemporary consensus levels. Thus, thebenefits ofinvestor scrutiny over Russian Railways' governance, spending andtransparency would be employed while control ofa highly important strategic industry would remain ingovernment hands. Finally, any listing ona foreign stock exchange would also contribute tothe goals ofreducing financing costs while animportant reason currently driving investor confidence inRussian Railways securities namely, strong government support would remain acontributing factor forfuture debt financing.
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