State Property Fund freezes Oblenergo privatizations

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.