The Russian government intends to hold auctions...

Arkady Dvorkovich said that initial public offerings (IPOs) could also be held to privatize state companies.

Dvorkovich did not specify, however, which share packages would be offered for sale or which companies could make initial public offerings. He earlier suggested transport, logistics and ship-building companies, as well as airports would be auctioned off.

"Practice shows that state companies are normally less efficient than companies in private ownership," Dvorkovich said, explaining the government"s decision to privatize state holdings.

Analysts say, however, the government"s plans to privatize state stakes are aimed at covering the state budget deficit in 2010, predicted at 6.8% of the country"s GDP. They also say that the move is a forced measure as companies have seen their market capitalization plummet amid the global financial and economic crisis and can only be sold at prices far below their pre-crisis value.

Government sources earlier said

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