Business news from Ukraine

UKRAINE NEEDS TO IMPORT 3.5 MLN TONNES OF COAL

Ukraine needs to import approximately 3.5 million tonnes of thermal coal during the coming heating season, Energy Minister Herman Haluschenko has said.
“Additionally, it is needed to import about 3.5 million tonnes during the heating season in accordance with the coal accumulation schedule,” the minister said in an exclusive interview with Interfax-Ukraine.
At the same time, he noted that generating companies – both DTEK and Centrenergo – have begun to conclude contracts for coal imports.
According him, the price of electricity in the market already makes it possible “to calmly buy coal, produce [electricity], sell and earn money.”
“We expect that we will stabilize the situation with coal and will calmly pass the autumn-winter period,” the minister said.
At the same time, he noted that in the heating season of this year, the Ministry of Energy also expects “certain achievements” – the NPP operation with at least 14 units out of 15 operating, as well as, if necessary, especially in December-January, connection of the 15th atomic block to the system. According to his forecasts, gas reserves in underground storage facilities will reach 19.5 billion cubic meters at the beginning of the autumn-winter period.
According to presidential decree 452/2021, promulgated on Monday, which approved the decision of the National Security and Defense Council (NSDC) dated July 30, 2021 on measures to neutralize threats in the energy sector, the Cabinet of Ministers must ensure the accumulation of natural gas, reserve fuels and coal by October 31 of this year for the smooth operation of the fuel and energy complex during the heating period 2021/2022, as well as the priority of providing open wagons for shipment of coal products by rail in accordance with the requests of coal enterprises – mines and processing plants. Also, the government needs to ensure the completion of the implementation of measures regarding the readiness of the fuel and energy complex to work in a special period and make appropriate decisions.

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CENTRENERGO TO BE PRIVATIZED BY LATE 2021

The State Property Fund (SPF) has issued an order on the privatization of the power generating company PJSC Centrenergo.
“By order of the State Property Fund No. 1275 dated July 23, 2021, the decision was made on the privatization of a state-owned enterprise – a state-owned stake of shares in the amount of 78.289% of the charter capital of the public joint-stock company Centrenergo. These are 289,205,117 shares,” the SPF said in a statement on its website on Monday.
According to the order that approved the plan for the placement of shares, the stake of the power generating company is planned to be placed at an auction with conditions from August 2 to December 31, 2021.
The SPF’s large privatization department shall ensure the creation of an auction commission and a competitive selection of an advisor to prepare for privatization and the sale of the stake.

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UKRAINIAN CENTRENERGO AND ODESA PORT-SIDE PLANT READY FOR PRIVATIZATION

President of Ukraine Volodymyr Zelensky believes that the state stakes of PJSC Centrenergo and PJSC Odesa Port-Side Chemical Plant are ready for sale at privatization tenders.
“I believe that the privatization of Centrenergo is important. Today we have cleared the company of many influential groups and Centrenergo is open [for privatization] … So is Odesa Port-Side Plant. I believe that it is ready for today,” he said, when speaking with journalists at the all-Ukrainian forum Ukraine 30. Economy without Oligarchs.
Zelensky noted that when selling large enterprises, it is not so much a one-time receipt of the maximum possible funds that is important, but the obligation of potential investors to invest in the modernization of companies with the subsequent stable receipt of taxes from their economic activities.
“It is important not how much the state will receive at once, but how much later – from taxes every month, every year. Business is not about buy and sell, this is not about mediation, business is a constant investment of money in technologies, in ideas,” the head of state explained.
As reported, in early June, the Supreme Court satisfied the claim of Odesa Port-Side Plant and the State Property Fund of Ukraine (SPF) and denied Ostchem Holding Limited of Dmytro Firtash in the execution of the decision of the Stockholm Arbitration Court to recover over $ 300 million from Odesa Port-Side Plant for gas supplies.
According to Head of the SPF Dmytro Sennychenko, this is a very important decision for the transparent privatization of the plant, since now any potential buyer can be sure that creditors will not be able to challenge his ownership of the plant.

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UKRAINIAN CENTRENERGO PREPARING FOR PRIVATIZATION

The Deposit Guarantee Fund (SPF) of Ukraine is working on preparations for the privatization of PJSC Centrenergo, Ukrainian President Volodymyr Zelensky has said.
“A lot of things are being said about Centrenergo. The company will prepare for privatization. The State Property Fund is engaged in this. They have a clear plan,” the head of state said during a press conference on Wednesday. More…

KYIV’S BUSINESS COURT UNLOCKS PREPARATIONS FOR PRIVATIZATION OF CENTRENERGO

Kyiv’s business court has annulled a ban the State Property Fund of Ukraine (SPF) from preparing for the privatization of PJSC Centrenergo, passing a ruling under a petition of the SPF on February 6, 2020.
The fund said on its website that at the end of January, the fund started the procedure of selecting investment advisors for the privatization of Centrenergo and is attracting an audit company with an impeccable reputation to conduct audit of the enterprise for 2019.
“In February, procedures to prepare a number of other large facilities for the privatization will be launched,” the SPF said.
As reported, Vitaliy Kropachev’s Ukrdoninvest LLC (Kyiv) repeatedly secured a lawsuit against the State Property Fund in the case of the privatization of PJSC Centrenergo by banning the fund from taking any actions to implement it.
Prosecutor’s office in Kyiv opened criminal proceedings on making the deliberately illegal decision to ban the privatization of PJSC Centrenergo by a judge of the business court of Kyiv.

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UKRAINE LAUNCHES SELECTION OF ADVISORS FOR CENTRENERGO PRIVATIZATION

The State Property Fund of Ukraine (SPF) has issued an order to create a tender commission to select advisers for privatization of PJSC Centrenergo, the SPF press service has said.
“The State Property Fund of Ukraine has begun the process of selecting advisers for Centrenergo privatization. In February, preparations will be launched for the privatization of a number of large privatization objects. In order to analyze in detail the state of affairs in the company for 2019, the State Property Fund also attracts an audit company with an impeccable reputation,” the press service said citing head of the fund Dmytro Sennychenko.
He said he expects to hold a tender to select an adviser in the first half of this year. According to him, the tender for the sale of the state-owned stake in Centrenergo, in turn, could be held at the end of this year-the beginning of next year. At the same time, the expert said that the situation in the energy market could also influence the timing of its holding.
The head of the fund added that RAB regulation remains an important factor in the issue of terms of privatization of regional energy companies.
The agency noted that recently the members of the Centrenergo supervisory board had ben reshuffled, as well as an order had been issued to hold a tender for the post of head of the generation company.
These measures will ensure the most transparent and competitive privatization, the fund notes.