FS-Trading Recognized as Owner of 35% of Odesaoblenergo

According to Kommersant newspaper, Ukraine’s Supreme Court recognized as valid the sales purchase agreement between FS Trading (associated with the main owners of the AvtoKrAZ group) and the State Property Fund of Ukraine on the privatization of a 35% stake in Odesaoblenergo (ODEN: U/R) in 1999. This SPA was ruled invalid by a local court in September 2001, which allowed VS Energy to privatize 35% of Odesaoblenergo. VS Energy currently controls about 67% of the company. Alexander Paraschiy: The recent decision by the Supreme Court does not invalidate the SPA between VS Energy and the SPF, and thus the court’s ruling does not imply that VS Energy has to pass 35% of Odesaoblenergo to FS Trading. Therefore, we believe there will be no impact from the ruling on Odesaoblenergo’s current shareholder structure.