Skip to main content

Federal Property Fund


The State Property Committee agency charged with receiving and overseeing privatization of state enterprises designated for privatization began operations in October 1992 (under Anatoly Chubais) in what became a largescale sale of state enterprises. The first stage was voucher privatization. Vouchers were sent to every man, woman, and child in Russia. These voucher checks could be used to purchase shares in what had previously been state enterprises. Or they could be invested in managed mutual funds or sold on the secondary market.

Enterprises slated for privatization were transferred to the Federal Property Fund. The initial stage of privatization excluded enterprises of national significance, such and oil and electric generation and those of military or strategic significance. Large scale, non-military enterprises were transferred subsequently in 19941995 and many were auctioned off under what was called the "loans for shares" program. When enterprises were transferred to the Federal Property Fund they were required to be converted into open joint stock companies before privatization. The Federal Property Fund was to oversee this transformation and supervise the privatization process.

In the end the Federal Property Fund participated in the largest privatization program in economic history, one that was replete with insider advantages, corruption, bribery, and scandalous underpayment by the ultimate owners. Privatization was also incomplete because the government maintained either a majority ownership or "golden shares" that allowed a veto over management decisions.

See also: privatization


Gregory, Paul R., and Stuart, Robert C. (2001). Russian and Soviet Economic Performance and Structure, 7th ed. New York: Addison Wesley.

Hedlund, Stefan. (1999). Russia's "Market" Economy: A Bad Case of Predatory Capitalism. London: UCL Press.

James R. Millar

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

"Federal Property Fund." Encyclopedia of Russian History. . 17 Jan. 2019 <>.

"Federal Property Fund." Encyclopedia of Russian History. . (January 17, 2019).

"Federal Property Fund." Encyclopedia of Russian History. . Retrieved January 17, 2019 from

Learn more about citation styles

Citation styles gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).

Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Then, copy and paste the text into your bibliography or works cited list.

Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, cannot guarantee each citation it generates. Therefore, it’s best to use citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites:

Modern Language Association

The Chicago Manual of Style

American Psychological Association

  • Most online reference entries and articles do not have page numbers. Therefore, that information is unavailable for most content. However, the date of retrieval is often important. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates.
  • In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list.