MOSCOW: Russia’s improving economy has removed the main impetus for privatizations planned for this year, allowing policymakers who always doubted the wisdom of selling state assets to re-gain the upper hand, according to interviews with multiple officials.
Russia’s finance ministry initially planned to raise 138 billion roubles from privatization this year, mainly from selling a stake in the shipping company Sovcomflot and reducing its holdings further in VTB, the country’s No. 2 bank.
At the beginning of the year, the sell-offs were vital to fill state coffers, temporarily silencing those in the government and the Kremlin who do not believe the state should divest its assets.
But since then, the price of oil has risen and the finance ministry has raised around 1.4 trillion roubles ($24.2 billion) so far this year on the domestic rouble debt market via its treasury bonds.
As a result, the supporters of state ownership — who have been growing in influence during Vladimir Putin’s 17 years in charge — are back in control, according to people familiar with debates among policy-makers.
The privatization of VTB was postponed until after Western sanctions that apply to the bank are lifted, while the stake sale in Sovcomflot was postponed from the middle of the year to an unspecified time.
“The transfer of property should not be a goal in its own right. The goal should be a proper level of competition,” Russian Economy Minister Maxim Oreshkin told Reuters.
“There are almost no fiscal reasons left for privatization,” he said.
The price of Brent crude oil was over $59 per barrel on Friday, a 7 percent increase from the year-start. In March, prices were falling below $50 per barrel, hitting budget revenues.
Disposing of state assets has for years been a tough sell inside Russia’s elite.
Since Putin took power in 2001, the opposite trend has dominated, with state-owned national champions such as oil major Rosneft acquiring assets that had been privatized after the collapse of Communism.
The need to find cash for the budget, at a time when Western sanctions made it harder for Russia to raise debt on international capital markets, opened a brief window for the pro-market camp. That has now shut.
With the imperative of plugging holes in the budget gone, other arguments against privatizations have re-emerged.
They include the fact that sanctions drive down the price Russia can command for selling state assets, and a belief that state firms can be just as efficient as private companies.
A fresh package of sanctions signed into law by US President Donald Trump has added to investor uncertainty about buying Russian assets.
“We have companies which mainly are of systemic importance or have a significant influence on the markets... The state can lose the control as a result of the sale,” finance minister Anton Siluanov said in July.
“Should we do this now when the (new) sanctions have hung over Russia and the companies are clearly undervalued?”
The central bank had to bail out two of Russia’s biggest private banks, Otrkitie and B&N Bank, while state-owned banks such as Sberbank thrive, giving extra ammunition to the pro-state camp.
“The example of Sberbank compared to the private banks is clearly showing that in general, the owner is not as important as risk management,” Deputy Finance Minister Vladimir Kolychev said.
Russia’s improving economy leaves privatization out in the cold
Russia’s improving economy leaves privatization out in the cold
Cruise Saudi strengthens global ties as Celestyal makes maiden calls to Jeddah
JEDDAH: Saudi Arabia is accelerating its push to become a global cruise hub, with Cruise Saudi — a wholly owned Public Investment Fund subsidiary — expanding international partnerships to draw more travelers to the Kingdom’s Red Sea and Arabian Gulf ports.
The latest milestone came as award-winning Greek cruise line Celestyal completed its first-ever calls to Jeddah, signaling rising global interest in Saudi Arabia’s cultural and natural attractions.
The visits form part of Cruise Saudi’s strategy to build a year-round cruise ecosystem that supports tourism growth, boosts local supply chains, and contributes to the Kingdom’s broader economic diversification.
Three UNESCO World Heritage Sites — AlUla, Jeddah Historic District, and Al-Ahsa Oasis — are now accessible by sea, with curated shore excursions designed to deepen visitor engagement.
Cruise Saudi aims to welcome 1.3 million cruise passengers annually by 2035, creating 50,000 direct and indirect jobs and positioning the Kingdom as a premier international cruise destination.
The 1,360-passenger Celestyal Discovery arrived in Jeddah on Dec. 5, following the 1,260-passenger Celestyal Journey, which made its maiden call on Nov. 29. The Journey concluded a seven-night Athens–Jeddah itinerary with stops in Turkiye and Egypt, marked by a traditional plaque exchange ceremony attended by Cruise Saudi executives, port officials and Celestyal representatives.
Passengers were welcomed with traditional Saudi hospitality and toured Jeddah’s historic Al-Balad district, bustling souks, and cultural sites. Some Muslim travelers also visited Makkah to perform Umrah.
“We are honored to celebrate our maiden call in Jeddah alongside our partners at Cruise Saudi, marking the beginning of a long and effective relationship,” said Lee Haslett, chief commercial officer at Celestyal.
He added that Jeddah’s role as “the cultural heart of Saudi Arabia” presents strong potential for cruise tourism.
Barbara Buczek, chief destination experiences officer at Cruise Saudi, told Arab News: “This maiden Red Sea sailing highlights the strong appeal of the region and aligns with Cruise Saudi's commitment to developing seamless, high-quality cruise experiences in Saudi Arabia.”
She noted that Celestyal’s expanded itineraries reflect rising demand for distinctive Red Sea and Arabian Gulf voyages.
Since its launch in 2021, Cruise Saudi has activated five cruise ports, introduced Aroya Cruises, the Kingdom’s first homegrown cruise line, and established Aman at Sea, an ultra-luxury JV with Aman Group set to launch in 2027. The company manages the full value chain — from terminals and berths to curated excursions — and has already welcomed more than 600,000 passengers of over 120 nationalities.
Celestyal, which carries more than 140,000 passengers annually across two refurbished vessels, is aligning with the Kingdom’s Vision 2030 ambition to transform coastal tourism. After departing Jeddah, both Celestyal ships continued to Abu Dhabi to begin the company’s second Arabian Gulf season.
Aroya Cruises has also launched a new seasonal program featuring stops in Mykonos, Athens, Crete, and coastal cities in Turkiye, expanding on a successful inaugural season that attracted over 95,000 guests.
The growing activity underscores Saudi Arabia’s emergence as a world-class cruise destination, supported by modern infrastructure, expanding routes, and experiences that highlight the Kingdom’s culture, heritage and hospitality.
