Photo from UNIAN
Ukrainian Ministry of Energy and Coal Industry is reluctant to transfer a 78% stake in Centrenergo, one of the country’s leading power generating companies, to the State Property Fund to carry out a privatization procedure.
"I am against this transfer, [of shares] but not against privatization," said Ukrainian Minister of Energy and Coal Industry Volodymyr Demchyshyn at a press conference in Kyiv, July 21.
According to Demchyshyn, control over Centrenergo allows the ministry to countervail the market and remain a competitor to the private energy holding DTEK.
In addition, the minister noted that the loss of control over Centrenergo could lead to a change in top management and disrupt preparations for the heating season.
"I am against such a transfer," Demchyshyn emphasized.
Earlier, the State Property Fund of Ukraine appealed to the Ministry of Energy and Coal Industry requesting to transfer the shares in Centrenergo by July 22.
Demchyshyn stated that the ministry would transfer the shares in Centrenergo to the State Property Fund promptly, should there be a real buyer.
As UNIAN reported earlier, in May, the Cabinet of Ministers ordered the State Property Fund to put up for sale 31 enterprises of energy and coal industry, including Centrenergo and Mykolayiv power plant. In turn, the Energy Ministry shall transfer state stakes of these companies to the State Property Fund.
At a government meeting in early July, Ukrainian Prime Minister Yatsenyuk once again insisted on immediate transfer of state stakes in Centrenergo company to the State Property Fund.
As UNIAN reported earlier, the head of government previously noted that international investors from the United States and the European Union are interested in acquisition of state power generating company Centrenergo, which is included in the list of objects for privatization in 2015. The prime minister emphasized that the attraction of transparent foreign investments will make it possible "to discipline" the energy industry and open access to Western capital markets.
UNIAN’s memo. State power generating company Centrenergo operates Vuglegirska, Zmiivska and Trypilska thermal power plants with a total installed capacity of 7550 MW. 78.29% of shares of Centrenergo is owned by the state, with a 21.71% stake remaining in private hands, including 2.33% owned by individuals, 19.38% - by legal entities, in particular, 10% held by Alfa-Bank.