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A Note on Enterprise Housing Divestiture in the Russian Federation*

Author

Listed:
  • Raymond Struyk

    (The Urban Institute)

  • Sheila O'Leary

    (The Urban Institute)

  • Ilona Dmitrieva

    (The Institute for Urban Economics-Moscow)

Abstract

To encourage enterprise privatization and improve enterprise efficiency, the Russian Federation government mandated that local governments assume financial and management responsibility for the housing stock of privatizing enterprises. Despite the mandate, the process of enterprise housing divestiture has proceeded relatively slowly. This paper overviews the legal basis for enterprise housing divestiture and discusses the fiscal impact of divestiture on enterprises and local government budgets. We collected data in three Russian cities: Petrozavodsk, Ryazan, and Vladimir, during the fall of 1995. We conclude that, although the financial benefits to enterprises may be quite significant, the cost of enterprise housing divestiture will impose a significant financial burden on local governments. This conclusion explains the hesitancy of many local governments, despite the federal government mandate, to accept the housing stock of privatizing enterprises.

Suggested Citation

  • Raymond Struyk & Sheila O'Leary & Ilona Dmitrieva, 1996. "A Note on Enterprise Housing Divestiture in the Russian Federation*," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 38(4), pages 53-67, December.
    • Handle: RePEc:pal:compes:v:38:y:1996:i:4:p:53-67
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    Cited by:

    1. Lindberg, Deborah L. & Lindberg, Walter F. & Razaki, Khalid A., 2000. "The "Anti-Stapler" and the Transfer of Social Sphere Functions From Federal Enterprises to Local Governments: Lack of Accounting Rules Contributes to Russia's Financial Woes," The International Journal of Accounting, Elsevier, vol. 35(1), pages 151-162, March.

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