Centrenergo new top management cannot access office, media report

Ukraine’s Cabinet has appointed a new top manager for
power generation company Centrenergo (CEEN UK) and three state-controlled power
distribution companies, PM Oleksiy Honcharuk reported on Feb. 26. He added that
details on the new appointments would be available on the Cabinet’s website.

Meanwhile, on Feb. 27, strana.ua news site reported
that a new Centrenergo top manager was not able to get into the company’s
office. The entrance has been blocked, presumably, by people connected to Igor
Kolomoisky, who used to control the previous company management, strana.ua
reported citing a source in the State Property Fund.

Thus far, no official information was disclosed on the
name of the new Centrenergo top manager, nor about his/her unsuccessful attempt
to enter the company’s office.

Alexander Paraschiy: The fact
that the government decided to remove pro-Kolomoisky top management in
Centrenergo is encouraging, as it gives a chance that the company will become
profit-oriented and increases probability for its soon privatization (refer to
our September note on risks of Centrenergo which stem from Kolomoisky control).

News about the blocking of the new top management
confirms the suspicions that the previous one did a lot of wrong things in the
company. The silence from the government on this incident looks strange and it
might indicate that the government is afraid of a public confrontation with a
“powerful oligarch.” However, one of the possible explanations for the silence
is that the appointment of the new top manager of Centrenergo has not been
formalized yet. In any case, we expect that the situation will be clarified in
the very near future.