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State Property Fund freezes Oblenergo privatizations

State Property Fund freezes Oblenergo privatizations

15 May 2008

Yesterday Andriy Portnov, acting head of the State Property Fund, suspended the privatization of blocking stakes in six electricity distribution companies (Poltavaoblenergo (POON: U/R), Lvivoblenergo (LVON: U/R), Prykarpatoblenergo (PREN: U/R), Chernihivoblenergo (CHEON: U/R), Sumyoblenergo (SOEN: N/R), Odesaoblenergo (ODEN: SELL)). According to Portnov, sale of the Oblenergo stakes will take place only after Odesa Portside Plant’s privatization. Alexander Paraschiy: Until Portnov or standing SPF Chair Valentyna Semenyuk-Samsonenko is confirmed as the official head of the SPF, the government’s privatization plans look to be at a standstill. Only a Verkhovna Rada vote can resolve the issue; the Yulia Tymoshenko bloc has been blocking parliament’s work this week, unless several key Tymoshenko initiatives are adopted, including the removal of Yushchenko-supported Semenyuk-Samsonenko and the installation of Portnov as SPF head. If Tymoshenko succeeds and Portnov is approved, we can expect privatization of the Oblenergos in June or July.

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