Four Potential Vertical Integration Plans For Ukrnafta

Fuel and Energy Minister Ivan Plachkov has described three of four possible means to create a vertically integrated oil company (VIC). The first would involve using Ukrnafta, the second would be based on state-owned Naftogaz Ukrainy, while the third would involve creating a new company. Concorde Capital: While it has not been mentioned, we assume that Ukrtatnafta, Ukraine?s largest refinery, is the fourth candidate for creating the VIC.  If Ukrnafta is used to create the company, Plachkov said it would take no less than one year to complete the task. Earlier, we noted that the President?s plan to create a VIC on the basis of Ukrnafta by June 10 was unrealistic. However, in the medium term we believe the chances of Ukrnafta becoming Ukraine?s largest vertically integrated oil company are high.