Russia sell-off may not lure investors

The privatisation of state assets usually takes place because governments need to raise funds; or the enterprises need capital and new technical and management skills.

But, Russia's planned sell-off of some of its assets — $29 billion worth by some estimates — over the next three years is unlikely to attract investors as the government is determined to keep controlling stakes in those enterprises on the block.

If the Russian government maintains a majority stake in the companies, it will be hard for outside investors to effectively improve their management and or operations. By maintaining a controlling share in the enterprises, the government has made it clear that Russia's strategic interests will come first — minority shareholders will simply be there to provide the funds and expertise. The companies — which include financial and energy enterprises — also reportedly do not have a history of paying out strong dividends to shareholders. All in all, hardly a compelling case for a bruised and skittish international investor community.