Russian President Dmitri Medvedev has proposed to remove federal ministers and senior Kremlin aides from the boards of directors of many of the country's state-run companies as part of an effort to minimize state control over the economy, www.diamondintelligence.com says. The change, to be completed by mid-year, is intended to improve the image of Russia's business environment with foreign investors, according to media reports.
While Medvedev's proposal would still allow the government to appoint low-ranking representatives to the boards, it is intended to put some distance between ministers and corporate decisions, the president said, according to the New York Times.
Russian diamond conglomerate Alrosa is among the state-run companies expected to replace government ministers from their boards. Deputy Prime Minister and Finance Minister Alexei Kudrin currently serves as Alrosa's Chairman of the board.
Describing the investment climate in Russia as "very bad," President Medvedev noted that there is a conflict of interest in that those government leaders who "answer the rules and regulations in a certain industry also sit on the board of directors of competitive companies," quotes the New York Times. The president said the government aims to initiate shareholder meetings and vote in replacements before mid-year.
As part of his modernizing plans, Medvedev also said he expects that Parliament would ease a rule barring foreign investors from large oil and other mineral deposits and suggests that state companies publish more detailed financial documents.
The practice of appointing ministers to the boards of state companies began during the previous presidency of Vladimir Putin, Medvedev's predecessor and Russia's current prime minister. Sources say Putin appointed those ministers loyal to him to the boards of state companies dealing particularly in energy, minerals, transportation, military industry and aviation.
Prior to President Medvedev's election in 2008, he served as both Chairman of Gazprom, the country's natural gas company, and as deputy prime minister, notes the New York Times.
