SPF – No Oblenergo privatizations in 2009

State Property Fund representative Yuriy Yakovlev said that the SPF will not privatize controlling stakes in any Oblenergos in 2009, according to Interfax. Yakovlev blamed a lack of supporting directives from the Cabinet of Ministers for derailing the sales. The Cabinet of Ministers approved decrees on August 19 that ordered the SPF to sell stakes in 14 Oblenergos at open tenders by December 1; the Cabinet initially asked the SPF to prepare the stakes for sale at the end of July. Yegor Samusenko: The inability of Cabinet of Ministers to move ahead with privatization plans shifts the auctions back until at least after the next president is inaugurated – implying that the earliest a new tender could be announced is March – or even June if pre-term parliamentary elections are called next year. We still believe the state will be interested in selling the controlling stakes in Oblenergos in 2010 to help cover the budget deficit, which we estimate at 4.5% of GDP.