We have written about how exporters across the globe are suffering due to reduced energy prices and China’s economic slowdown. As commodity exporters grapple with low prices and slowing demand, many major energy exporters are beginning to resort to privatizations in order to mitigate some of the exporting countries’ vast revenue losses. Nigeria, Saudi Arabia, Colombia, Russia, Kazakhstan, Azerbaijan and Turkmenistan are all commodity exporters now either implementing or embarking upon ambitious privatization plans. While each country is in a different stage of this process, for these exporters, privatizing assets in the current economic climate means both selling stakes in key companies at low prices and foregoing some control over assets that have long underpinned regime power. Loosening control of key state assets can, to varying degrees, destabilize regimes. Privatization plans will thus face resistance as concerns emerge over both pricing and loss of control over significant as
Exporters Pursue Privatization Plans
Jan. 19, 2016 As commodity prices and demand decline, some countries heavily dependent on exports are looking for new sources of revenue.