Privatization commission spoils VIEN auction

The privatization auction for a 50% stake in electricity distribution company Vinnitsyaoblenergo (VIEN UK) did not take place as planned on Friday due to lack of quorum on the privatization commission, the State Property Fund said. The commission consists of seven members, with four needed for quorum. Ekonomichna Pravda, citing one of the auction participants, reported that two of the four commission members present left the room just before the start of the auction and came back only after the commission decided to postpone the tender.

Alexander Paraschiy: This was the second privatization auction for an electricity distribution company in which DTEK did not participate and the second one that has been postponed. Unlike DTEK (which has privatized Donetskoblenergo and electricity generators Dniproenergo, Zakhidenergo and Kyivenergo in the last two months), it looks like the other contenders for these stakes (VS Energy, Energy Standard and businessman Grigoriy Surkis) have not gotten an official ‘blessing’ from the government yet.