Russian-Owned Gas Distributors Change Hands

Russian businessmen Mikhail Abyzov and Viktor Vexelberg bought controlling stakes in four Ukrainian gas distribution companies: Dniprogaz, Donetskmiskgaz, Kryvorozhgaz and Kharkivgaz. The companies supply gas in industrial regions and account for almost 6% of total gas supply in Ukraine. The seller was a Russian business group headed by Duma member Alexander Babakov. Alexander Paraschiy: It looks like Babakov’s group could be selling all its Ukrainian assets. Besides the gas distribution companies, Babakov is negotiating to sell five electricity distribution companies (Oblenergos), with Czech energy holding CEZ the likely buyer. Last year Babakov’s group sold an insurance company to Poland’s PZU.