Privatisation of Russian industry

Privatisation is the final, and perhaps structurally most demanding, leg of the shock therapy sequence introduced to Russia at the beginning of 1992. It has been pursued with dogged determination, although the general approach and specific procedures have changed considerably over time. This article surveys the relevant decrees and legislation and summarises the approach eventually adopted: a mixture of workforce ownership, citizens' 'vouchers' and 'sell to the highest bidder'. Taking workforce ownership and management control as currently the most common outcome of privatisation, the implications for Russian industrial performance are examined, using the Western corporate governance literature as a guide.