In order for a gratuitous alienation of property owned by the Russian Federation to become the ownership of physical and (or) legal entities is understood as being the privatization of Federal property.

The legal basis of Federal property privatization is the Civil Code of the Russian Federation, Federal Law of December 21, 2001, No 178-FZ “On privatization of state and municipal property," and “Design guidelines for the forecast plan (program) of the privatization of Federal property”, as approved by the Government of the Russian Federation, on December 26, 2005, No 806.

The main aims and objectives of government policy on privatization of Federal property are:

• reduction of excess volume of state property;
• attracting investment and modern technology with the help of new owners who are interested in long-term development of the privatized enterprises;
• Improving governance through greater accountability of owners;
• optimization of the structure of state property, including by its concentration and the conversion of a Federal State Unitary Enterprise into OAO;
• creating an enabling economic environment for business development, especially for small and medium businesses.

Privatization is also a source of budget revenues.

Forecast plan (program) of the privatization of Federal property in 2009 and the main trends of privatization of Federal property in 2010 and 2011 was approved by the Federal Government on September 1, 2008, № 1272-r.

Forecast plan (program) of the privatization of Federal property in 2010 and the main trends of privatization of Federal property in 2011 and 2012 was approved by the Resolution of the Federal Government on November 30, 2009 № 1805-r.