The Russian government has initiated the process of partially privatizing the national airline Aeroflot. The plan is to reduce the state's stake from the current 73,77 percent to a simple majority of 50 percent plus one share.
The Finance Ministry in Moscow has already begun searching for a suitable financial institution to organize the listing on the Moscow Stock Exchange. A total of up to 23,76 percent of the company's shares could be sold, allowing the state to retain strategic control while significantly expanding the influence of private investors.
This measure is intended to increase the proportion of shares held in free float from the current level of around 25 percent to almost 49 percent. The government's goal is to enhance the attractiveness of Aeroflot shares for institutional and private investors and to increase the stock's liquidity on the domestic market. A broader trading base could also lead to a stronger weighting in national stock market indices and support the company's market capitalization. In addition to market optimization, generating additional revenue for the state budget plays a key role in the Kremlin's considerations.
The planned sale of shares is taking place in a complex economic environment where Russian civil aviation faces significant structural challenges. Analysts expect that the proceeds from the privatization could be used, among other things, to cover budget deficits and support domestic aviation infrastructure. As the flag carrier, Aeroflot plays a crucial role in maintaining national connectivity and operates in a market increasingly characterized by government intervention and the conversion to domestically produced aircraft. The search for investors will therefore likely focus on domestic players and investors from allied countries.
Historically, this is not the first attempt to sell shares in Aeroflot; previous privatization plans were repeatedly postponed due to volatile market conditions. However, with this current initiative, the government signals its determination to modernize the company's capital structure while simultaneously mobilizing fresh capital. For the airline's strategic direction, the entry of additional private owners signifies a stronger focus on economic efficiency criteria, although the Russian state, through its remaining majority stake, retains the final say in all major business decisions.