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Source: data base of the State Committee on Property of the Russian Federation, calculations by the authors.

Like federal state enterprises, the share of other branches grew in the branch structure of krai and oblast state enterprises: from 20.6 percent at the beginning of 1993 do 52.7 percent at the beginning of 1998. The proportions of the majority of the remaining branches decreased. An exception were retail trade (growth from 4.4 percent to 6.2 percent), the motor vehicle business (growth from 4.9 percent do 6.0 percent), and incomplete construction sites (their share fluctated at about 2.0 percent). As at the beginning of 1993, aside from the block of other branches, only agricultural (12.4 percent) and construction (11.5 percent) enterprises had proportions exceeding ten percent. The majority of krai and oblast state enterprises of all branches decreased, with the exception of the block of other branches, where an increase of almost forty percent was observed.

Far more curious were shifts in the branch structure of enterprises of municipal property ownership (Table 8).

Table 8

Structure of state enterprises in Russia in 1993-1998 on independent balance sheets of municipal property ownership by branches of industry

Branches

As of 1 Feb

1993

As of

1 Jan 1994

As of

1 Jan 1995

As of

1 Jan1998

units

%

units

%

units

%

units

%

Light industry

164

0.2

187

0.3

249

0.4

144

0.3

Food industry

478

0.7

540

0.8

522

0.9

392

0.9

Construction enterprises

907

1.4

921

1.4

961

1.6

674

1.6

Construction materials industry

212

0.3

159

0.2

135

0.2

122

0.3

Agricultural enterprises and equipment maintenance servicing for agriculture

1408

2.1

1505

2.2

1253

2.1

767

1.8

Motor vehicle transport and motor vehicle repair enterprises

319

0.5

2653

4.0

2750

4.7

2725

6.3

Retail trade

27042

40.7

22067

33.0

16574

28.2

6993

16.1

Wholesale trade

264

0.4

909

1.4

971

1.7

1066

2.5

Public eating facilities

8585

12.9

7878

11.8

6539

11.1

4054

9.4

Consumer services

15371

23.1

14194

21.2

9418

16.0

4180

9.6

Incomplete construction sites

672

1.0

777

1.2

661

1.1

326

0.8

Others

11005

16.6

15163

21.6

18672

31.8

21890

50.5

Total

66427

100.0

66953

100.0

58705

100.0

43333

100.0

Source: data base of the State Committee on Property of the Russian Federation, calculations by the authors.

As in the instance of federal, krai, and oblast state enterprises, the basic shift in the branch structure of municipal enterprises was the sharp growth in the share of enterprises of other branches from 16.6 percent at the beginning of 1993 to 50.5 percent at the beginning of 1998. At the same time the shares of the motor vehicle business (from 0.5 percent to 6.3 percent) and retail trade (from 0.5 percent to 6.3 percent) grew to an even greater degree. Along with that, like republican state enterprises, the proportions of the branches of three branches (light, good, and constructions materials) of industry (from 1.2 percent to 1.5 percent in the aggregate), and of construction (from 1.4 percent to 1.6 percent) increased somewhat. The shares of the remaining branches in the overall structure decreased.

In summary, by the beginning of 1998, aside from the block of other branches, only retail trade had a proportion exceeding one tenth (slightly more than sixteen percent), while at the beginning of 1993 this was characteristic, along with retail trade, of consumer services (slightly more than twenty-three percent) and public eating facilities (about thirteen percent). It should especially be emphasized that over the period being analyzed as to municipal property ownership there was observed an explosive increase in the absolute number of motor vehicle transport (together with motor vehicle repair) enterprises (by about 8.5 times), of wholesale trade enterprises (by more than four times), and of enterprises of other branches (double).

It is necessary to understand that all the changes in the number of state enterprises on an independent balance sheet in the 1990s were a consequence not only of their privatization and liquidation, but also of the differentiation of property ownership among diverse levels of [governmental] authority and between creations of new enterprises.

      1. Dynamics and structure of unitary state enterprises after adoption of the Concept of managing state property and of privatization of 1999.

The beginning of a new stage in the reformation of property ownership relations in Russian was laid by the approval of the Concept of managing state property and of privatization in the Russian Federation (hereafter in the text: the Concept) by Decree of the Government of the Russian Federation №1024 dated 9 September 1999. By Decree of the Government of the Russian Federation №1024 dated 9 September 1999. It was namely in this document that for the first time unitary enterprises along with blocks of stock (units, shares) of the state in the capital of companies [khoziaistvennye obshchestva] (AO stock companies first of all) and real estate were singled out in the capacity of an object of state policy in the area of managing its property. Correspondingly, for the first time the number of unitary state enterprises of federal property ownership (FSUE) – 13,786 units – was named (however, without clarification of the concrete date as of when this figure was established). This figure is about half the number mentioned above of the number of federal state enterprises on independent balance sheets as of 1 January 1998 (29,666 units). The impossibility of privatization and liquidation of almost sixteen thousand unitary state enterprises over half a year's time in the context of the tortuous reversals of fortune in the economic and political development of the country in 1998-1999 is obvious enough.

In all likelihood, what we are talking about is that the database of the Ministry of State Property of the Russian Federation initially included aggregate data (how complete is a question) on the number of enterprises and institutions of this or that level of property ownership, improperly calling them state enterprises on an independent balance sheet. It is entirely possible that there was also proceeding a process of transformation of unitary enterprises into institutions during the course or reorganizations. In the Concept the number of federal institutions is given at 23,099 units.4

At the very same time it is impossible not to direct one's attention to the fact that the overall number of regional and municipal unitary enterprises as of 1 January 2000 according to data from Goskomstat of the Russian Federation (65,000 units) was about eleven percent more than the aggregate number of state enterprises on independent balance sheets of republican, krai, oblast, and municipal property ownership (about 58,600 units) as of 1 January 1998 according to the data base of the Ministry of State Property of the Russian Federation.

The following dynamics of the absolute number of federal state unitary enterprises can also be traced by information from the Ministry of State Property of the Russian Federation. By the summer of the year 2000 after conducting energetic work in the Registry of property ownership of the Russian Federation there had been taken into account 11,200 unitary enterprises, as of 1 September 2001 – 9,855 units, and as of 1 January 2002 – 9,394 units (or about thirty-two percent fewer than was indicated in the Concept). Such a decrease in the absolute number of federal state unitary enterprises is explained by the implementation of the set of measures envisaged by the Concept directed at curtailment of their numbers (reorganization, privatization, liquidation). At the same time it cannot be asserted unambiguously that in the future the vector of the quantitative dynamics of federal state unitary enterprises will point undeviatingly toward their decrease.

Table 9

Cross-Industry Structure of Federal, Regional, and Municipal Unitary Enterprises in 2000-2002

Branches

Federal state unitary enterprises as of 1 January 2002

Regional and municipal unitary enterprises as of 1 January 2002

number

share

number

share

Industry, including

1844

19.6

6044

16.4

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