The Cabinet of Ministers issued an order on July 29 that directed the transfer of government-held stakes in Ukraine’s power distribution companies (aka Oblenergos) to the State Property Fund for privatization, according to details of the order published yesterday. According to the Cabinet’s decree, the government-controlled National Energy Company of Ukraine (NC ECU) will retain control of 5-15% stakes in 10 of the companies.
NC ECU Passed NC ECU
before to SPF after
Chernivtsioblenergo CHEN 70% + 1 60% + 1 10.00%
Cherkasyoblenergo CHON 46.00% 46.00%
Dniprooblenergo DNON 75% + 1 60% + 1 15.00%
Donetskoblenergo DOON 65.06% 60% + 1 5.06%
Kharkivoblenergo HAON 65% + 1 60% + 1 5.00%
Khmelnitskoblenergo HMON 70% + 1 60% + 1 10.00%
Kyivenergo KIEN 50% + 1 50% + 1
Krymenergo KREN 70% + 1 60% + 1 10.00%
Mykolaivoblenergo MYON 70% + 1 60% + 1 10.00%
Ternopiloblenergo TOEN 51.00% 51.00%
Vinnitsaoblenergo VIEN 75% + 1 60% + 1 15.00%
Volynoblenergo VOEN 75% + 1 60% + 1 15.00%
Zaporizhiaoblenergo ZAON 60.25% 60.25%
Zakarpatoblenergo ZOEN 75% + 1 60% + 1 15.00%
Luhanskoblenergo 60.06% 60.06%
Yegor Samusenko: Though the transfer of the stakes to the SPF could happen soon, it doesn’t mean anything concrete about the timing of their privatization. The SPF, in practice, can hold these stakes as long as it is needed. In 2001, when six Oblenergos were privatized, it took six months between the relevant Cabinet decision and privatization auctions; political pressure was much higher then than now. This news is generally positive for the stocks transferred to the SPF, though it is still difficult to forecast what stakes will be sold and when.