Russia Plans $1.22 Billion Asset Liquidation in 2025 to Address Budget Deficit

Russian Finance Minister Anton Siluanov announced on Tuesday that the government intends to liquidate assets that have been seized by the state to increase revenue.

“We aim to accelerate the privatization of properties entering the treasury,” Siluanov stated during a meeting of the board of Russia’s Federal Agency for State Property Management (Rosimushchestvo), as reported by the state news agency TASS.

Rosimushchestvo is responsible for the temporary management of these confiscated assets.

Siluanov indicated that the government anticipates generating at least 100 billion rubles (approximately $1.22 billion) from asset sales in 2025, including those taken through judicial processes.

While he did not clarify how the revenue will be utilized, Russia is forecasting a budget deficit of 1.17 trillion rubles (0.5% of GDP) for 2025, driven by an increase in defense expenditures.

“New growth strategies for state-owned enterprises will need to be approved to enhance their role in achieving national objectives,” Siluanov was quoted as saying by TASS.

In 2024, the Russian-language edition of The Moscow Times reported that the state had confiscated a record 544.7 billion rubles (around $6.71 billion) in assets from at least 67 companies in sectors such as food, real estate, and retail.

Since initiating a large-scale invasion of Ukraine in 2022, Russia has engaged in a significant redistribution of wealth, including the nationalization of strategic assets worth 1 trillion rubles ($10.8 billion).

Officials, including President Vladimir Putin, have refuted claims that Russia is experiencing a process of de-privatization or nationalization of its economy.