Battle for the State Property Fund Threatens Oblenergos Privatization

The privatization of stakes in six Ukrainian electricity distribution companies (Poltavaoblenergo (POON: U/R); Lvivoblenergo (LVON: U/R); Prykarpatoblenergo (PREN: U/R); Chernigivoblenergo (CHEON: U/R); Sumyoblenergo (SOEN: N/R); Odesaoblenergo (ODEN: SELL)) is under threat of being frustrated due to the conflict between Valentyna Semenyuk-Samsonenko and Andriy Portnov, struggling for the ruling over the State Property Fund. According to Interfax, Valentyna Semenyuk-Samsonenko, the president’s protege ordered to announce about cancellation of oblenergo privatization auctions in the last issues of “Vidomosti Pryvatyzaciyi”, the State Property Fund’s official newspaper. But Andriy Portnov, who belongs to the prime-minister’s teem said that the issues were eliminated as illegal. Two stock exchanges, which were scheduled to host privatization of POON on May 14 and LVON on May 15 already informed about cancellation of tenders. Alexander Paraschiy: Even the stock exchanges which are scheduled to host privatization tenders are not certain about tenders’ prospects. After Semeniuk-Samsonenko issued an order to cancel tenders two days ago, two stock exchanges announced about cancellation of tenders for POON (May 14) and LVON (May 15). Though, as of today’s morning, information about cancellation of Poltavaoblenergo tender was removed from the website of Ukrainian Inter-bank Currency Exchange. We expect some but not all of the tenders will occur this May.