Management At Two Oblenergos Accused Of Illegal Exports

The Prosecutor’s Office in the Poltava region initiated legal proceedings against managers at Poltavaoblenergo (POON: HOLD). According to the prosecutor’s office, illegal exports of sorbent by the company resulted in state budget of USD 0.02 mn. Similar proceedings have been initiated against Chernihivoblenergo (CHEON: HOLD), which is accused of costing the state USD 0.16 mn. Concorde Capital: Block stakes in CHEON and POON are owned by two rival business groups: one controlled by Konstantin Grigorishyn and another by Grigory Surkis. In 2002-2003, control over the activities of these companies was transferred to Surkis. However, his position has weakened since the Orange Revolution and investigations into the management of Surkis-controlled companies have been initiated. Another Surkis-controlled company, Prykarpattiaonlenergo (PREN: HOLD), is also accused of illegally exporting materials.