The events that took place in Russia in the early 90s brought about changes that affected the change in property rights. The country began the privatization of state and municipal property.
Privatization means the transfer of state-owned property to private hands, for a fee or for free. Privatization in Russia was in full swing. Its main legislative framework was determined by the Law on Privatization. Special committees were organized to prepare the necessary documents and evaluate property, as well as organize auctions. Property funds carried out the sale of organizations and their shares.
Denationalization and privatization in Russia took place, based on the principles of equality of each buyer and the absolute transparency of this process. All this was a necessary measure in the transition to a market economy. At this time, joint-stock companies became widespread in the country. With this form of transformation of the enterprise, its employees received priority privileges for the privatization of property. Shares were distributed between them on a free basis.
In 1992, voucher privatization in Russia became widespread. Each citizen of the country was given a free coupon, which gave the right to acquire part of the property of any enterprise. This measure made it possible to maintain the principle of equal rights between different social strata of society. Each citizen was given the opportunity to buy part of the property on equal terms. The second advantage of the free distribution of vouchers was the acceleration of the privatization of state and municipal property. This privatization model was used not only in Russia, but also in Romania, Poland and Czechoslovakia.
Privileged privatization in Russia provided for discounts to certain categories of citizens. There was a return of property to owners and their heirs, who were illegally deprived of it in previous years. This process is called reprivatization.
Sometimes, formal privatization initially took place, which involved the transfer of property to private hands. At the same time, there were no significant changes in the structure of the enterprise, in its fixed assets. It was preparation for material privatization.
Real privatization in Russia took place through the sale of state property to private hands. This process was carried out through auctions and tenders. The tender was held in open form or with a limited number of investors. This method allowed to attract a large number of potential investors. Their selection was carried out not only by price indicators. Many other factors have been given priority. For example, a significant inflow of capital was a decisive factor.
When selling an object of state and municipal property through an auction, the main criterion was the proposed value. Other factors were not significant. The company was sold at its real market price, which at this stage was very important. In addition, this form of sale has reduced the incidence of corruption. At that time, other privatization methods would give rise to massive sales bribery.
Facts of direct selling directly to a particular investor have occurred. This was done taking into account the importance of this investor. With this method, it was necessary to correctly determine the real value of the property.
Privatization in Russia has gone rapidly. Her organization had its pros and cons. Only now can we really determine its scope and identify all inaccuracies.