DFEC Starts Structuring Its Assets

TheDonbass Fuel and Energy Company (DFEC), which manages SCM’s energy assets, is now transforming into a holding company. After obtaining permission to concentrate more than 25% of Donetskoblenergo last week, the DFEC obtained permission from the Anti-Monopoly Committee to purchase more than 50% of the Mospyne Coal Refinery and allowed the Mospyne Coal Refinery to purchase assets of PES-Gorenergo. Alexander Paraschiy: Both Mospyne Coal and PES-Gorenergo were part of the DFEC before and now the DFEC can become the companies’ official owner. Donetskoblenergo (DOON) is not a part of the DFEC, as 55% of the company is controlled by the National Energy Company (the NC ECU). However, since the top manager of the NC ECU is an ex-DFEC employee and DFEC companies already have two representatives (out of seven positions) on Donetskoblenergo’s supervisory board, we believe Donetskoblenergo (or part of it) will become a member of the DFEC holding soon.