Ukraine reveals 2017 privatization list

Ukraine’s State Property Fund published on Jan. 25 a list of 107 companies that it plans to offer for privatization in 2017. The list traditionally includes the remaining controlling stakes in six power distribution companies, a 78.29% stake in power GenCo Centrenergo (CEEN UK), and the remaining 25% stakes in eight power generation and distribution companies (including stakes in six companies controlled by DTEK). It also plans to offer a 75.2% stake in turbine maker Turboatom (TATM UK), 68.0% in the Zaporizhia Aluminum Plant, 51.0% in the Zaporizhia Titanium Plant, 99.6% in Odesa Portside Plant and 100% in Sumy Khimporm.

This year, the Ukrainian state budget plans to receive over UAH 17 bln in privatization proceeds, almost the same amount that was planned in the previous three years. In 2014-2016, Ukraine got only UAH 0.95 bln from the privatization of state property.

Alexander Paraschiy: We have little grounds to expect that this year will differ from the previous three in terms of privatization success – we can only rely on blind faith that this pattern might change in 2017. What can be realistically sold this year is controlling stakes in six power distribution companies, and possibly Odesa Portside (if the ammonium nitrate market will allow for it).

Centrenergo’s sale does not likely this year since political will is lacking, nor does the sale of six minority stakes in DTEK-controlled utilities, simply because DTEK does not have the funds to buy them. Optimistically, we can expect Ukraine’s privatization proceeds will reach UAH 5 bln this year.