Ukrnafta (UNAF: BUY) To Obtain Control Of Ukraine?s Oil Companies

President Viktor Yuschenko has said the government must transfer all state-owned shares in oil companies into Ukrnafta?s statuary fund. According to the plan, UNAF will receive the state?s stakes in Ukrtatnafta (43%), Galichina Refinery (25%) and Naftohimik Prikarpatya (26%). Additionally, the government will be required to gain all other stakes in the aforementioned companies. Concorde Capital: This is good news for Ukrnafta, but suggests that we will see a new crisis between business groups and the government. It is unlikely that the current owners of Ukrtatnafta and Naftohimik Prikarpatya (controlled by Privat), will agree to sell their stakes. However, the government?s strong determination to complete the task, and other means of exerting pressure on the owners, will likely convince the groups to choose to negotiate, rather than resist. WATCH.