During Putin’s presidency the Russian government took over a number of oil companies. In what appears to be a reversal of earlier actions b the Russian government, Vladimir Putin has indicated that the government should step back from its involvement in the economy and allow private enterprise to help Russia out of the global recession.
In a speech at a banking forum Putin reinforced assurances by his ministers and economic advisors that Russia would be open to foreign investors. In addition he praised private enterprise and indicated at the economy stabilizes further that the Russian government would continue to cede ground to private enterprises. This could lead to new privatizations of businesses in Russia.
Most noteworthy is that Putin recognized that complete governmental intervention in economies “cannot fix everything and put everything in its place.” As a result Russia has extended an olive branch to the oil companies which it had taken over earlier in the decade. Additionally Russian may liberalize the natural gas trade. This reversal comes on the heels of the economic slowdown. Previously during the oil boom Russia was awash in money, now that the tide has turned it finds itself needing foreign investment like many emerging economies.
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