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Ukraine To Privatize UkrnaftoProdukt.

Ukraine To Privatize UkrnaftoProdukt.

1 December 2008

Yesterday the government started preparing for the sale of a 50% state stake in the company. Private companies own the remaining 50%. UkrnaftoProdukt has minority and majority stakes in a number of regional oil product distributors. However, a court is currently considering an ownership dispute between the state and private shareholders concerning the company’s assets. The state alleges that the private shareholders conducted a dilutive share issue and also used the assets as collateral, which effectively resulted in the company?s asset stripping. In 2004, UkrnaftoProdukt received USD 231 mln in sales and reported losses of USD 0.3 mln.

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