Centrenergo, Donbasenergo privatizations postponed until after elections

Ukraine’s State Property Fund rescheduled the announcement of privatization tenders for controlling stakes in two electricity generation companies, Centrenergo (CEEN UK) and Donbasenergo (DOEN UK), until December 2012. The two tenders were initially scheduled for June and later were postponed to August, subject to the approval of the Cabinet of Ministers.

Alexander Paraschiy: The postponement is in line with our base-case scenario (refer to our news of June 14). The fact that privatization will happen only after October’s parliamentary elections, without the inherent extra political risks, implies the Cabinet of Ministers might be willing to arrange a real tender to privatize the companies. Though, the postponement only slightly decreases the risk of selling the assets in a non-transparent tender.