14 April 2008
Viktor Yushchenko issued a decree on Friday suspending a Cabinet of Ministers order to add to the 2008 privatization list 60%+1 shares of Dniproenergo (DNEN: BUY), Centrenergo (CEEN: HOLD), Zakhidenergo (ZAEN: HOLD) and Donbasenergo (DOEN: BUY). The President also banned the transferring of the stakes from the National Energy Company to the State Property Fund. Yushchenko said that the reason for freezing privatization proceedings was to protect national energy security. Yushchenko also blocked the privatization of Kryviy Rih Oxidized Iron Ore (KGOKOR) and a 75% stake in Turboatom (TATM: BUY). Alexander Paraschiy: We have stated all along that the sale of stakes in generation companies looks difficult to realize in 2008, and the President’s decree makes privatization of these generation companies even more unlikely this year.