Court allows Oblenergo stakes to be transferred for privatization

The Kyiv Appellate Administrative Court renewed the Cabinet of Ministers decree that authorized the transfer of 15 stakes in electricity distribution companies to the State Property Fund for privatization. The decree dated July 29, 2009 declared the following stakes be given to the State Property Fund: 60%+1 stakes in Vinnytsyaoblenergo (UX: VIEN UK), Volynoblenergo (UX: VOEN UK), Dniprooblenergo (UX: DNON UK), Zakarpatoblenergo (UX: ZOEN UK), Khmelnitskoblenergo (UX: HMON UK), Krymenergo (UX: KREN UK), Mykolaivoblenergo (UX: MOEN UK), Chernivtsioblenergo (UX: CHEN UK), Donetskoblenergo (UX: DOON UK), and Kharkivoblenergo (UX: HAON UK); a 60.25% stake in Zaporizhyaoblenergo (UZ: ZAON UK), a 60.06% stake in Luhanskoblenergo, a 51% stake in Ternopiloblenergo (UX: TOEN UK), a 50%+1 stake in Kyivenergo (UX: KIEN UK) and a 46% stake in Cherkasyoblenergo (UX: CHON UK). Yegor Samusenko: After this transfer actually takes place, the State Property Fund will have no other technical obstacles for the privatization of Oblenergos. We expect the first privatization auction to be announced in late 2010 – early 2011, with the actual auction taking place 75 days after the announcement.