Kolomoyskiy Considers Selling an Oil Refinery

According to RBC-Ukraine, which cited an undisclosed source, Ihor Kolomoyskiy (Privat Group) is seeking to sell his stake in one oil refinery in Western Ukraine. Vladimir Nesterenko: Privat owns a ~73% stake in Halychyna Refinery (HANZ: N/R) and ~63% in Naftokhimik Prykarpattya (NAFP: N/R), while the state holds blocking stakes (25%+) in both. Sellout is not unexpected, as Privat failed to secure sufficient oil supplies to both refineries. In our view, the most likely candidate is Halychyna, whose capacity is too high to accommodate oil produced by Privat-controlled Ukrnafta, and requires more modernization.