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Six Oblenergos Will be Privatized Soon?

Six Oblenergos Will be Privatized Soon?

20 February 2008

According to the Minister of Fuel and Energy Yuriy Boyko, the Ministry and the State Property Fund agreed on the privatization of 10%-15% stakes in six Oblenergos. No list of companies was announced. Alexander Paraschiy: According to a preliminary list, there are eight Oblenergos that the state might privatize 10%-15% stakes in this year: DNON, VIEN, VOEN, ZOEN (15%) and CHEN, HMON, KREN, MYON (10%). We believe that out of these companies the least likely to be on the list are CHEN and MYON. The companies are small so that return from privatization will be low, and the state is not willing to allow VS Energy (which is most interested in these companies and is in conflict with state now) to increase its stake in the companies to more than 30%.

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