Kyiv could strip plants from Kyivenergo if it stops hot water supplies

The Kyiv City Administration said yesterday that it could terminate Kyivenergo’s (KIEN) lease of the city’s boiler units if the company turns off hot water and heating to the city. In August, Kyivenergo shut off hot water supplies to a large swath of the city over debts – according to local media reports, 2,700 residential buildings, 69 hospitals, 205 kindergartens and 158 schools were turned off. Yegor Samusenko: Kyivenergo currently has an agreement to lease the city of Kyiv’s electricity and heat generating assets until 2016. We believe the city’s threat is a purely political reaction to Kyivenergo toughening its stance toward debtors. We do not see this statement as having an effect on either the business of the company or its stock price.