Ukraine postpones big privatization for 2018

Ukraine’s State Property Fund is postponing any privatization
of large state companies for 2018, fund head Vitaliy Trubarov said on Oct. 17.
An evaluation of fertilizer producer Odesa Portside Plant will be ready in
November, and in December the fund will start collecting bids for the asset to
complete its privatization for next spring. He also expects to sell a majority
stake in power GenCo Centrenergo (CEEN UK) next spring.

Regarding the sale of power engineering firm Turboatom
(TATM UK), Trubarov said consultations with the government are ongoing to
determine the stake to be offered. Besides these assets, the Fund is planning
to offer controlling stakes in six power distribution companies, three small
heat and power plants, and two state agricultural trading holdings.

Recall, the Ukrainian government committed to the IMF
to “initiate privatization” of Odesa Portside, Centrenergo, Turboatom and power
DisCos this year. The privatization of Odesa Portside Plant has been scheduled
for December, according to the Fund’s updated resolution published last week.

Alexander Paraschiy: Trubarov’s statement confirms what we stated last week, which is that there is little chance for any big
privatization this year. All the above-listed assets have been shifted from one
annual privatization plan to the next throughout the last four years, with
little tangible result. There was always a chance for a breakthrough in each
subsequent year, but our base-case scenario is that we won’t see any progress
in 2018 as well.