Kolomoysky Negotiating the Purchase of RosUkrEnergo

According to Interfax, co- owner of Privat Group, Igor Kolomoysky announced that he is negotiating the purchase of 50% stake in RosUkrEnergo, currently held by Dmitry Firtash. Igor Kolomoysky said that 50% stake is worth at least USD 2-3 bln. Vladimir Nesterenko: It looks like Privat is seeking (or is threatening to seek) more leverage over the government. The group has the following issues currently outstanding: high oil & gas royalties, gas prices capped below cost, and price regulations in oil product retail. We tend to believe that Privat’s backing by Tymoshenko (still a widespread view) came to an end some time ago, the news flow indicates the group is now relying more on economic power than political lobbying.