According to the government decree No 727-r, the Presidential Administration will soon receive 100% of stock belonging to the new President-Hotel Kyivsky joint stock company. The SPF is finishing reorganization of the Hotel Complex Kyivsky open stock company into President-Hotel Kyivsky.
This is the first time an organization with still undefined status (because its activity is governed by special legal acts), has become the owner of profitable property. Apparently, the point is that this organization is the President’s Administration. It turns out that our state officials openly run businesses using state capital, not their own. We know that they call such activity elsewhere.
The story with Kyivsky Hotel has many aspects, and The Day will cover them later. Now we will limit ourselves to the bare facts. It all started in early 1998 from the conflict on separating Kyivsky from the Kyivska Rus’ complex. The balance and stock division took place in late 1997. Attempts by Kyivska Rus’ managers to prevent the division were unsuccessful. What actually happened was simple nationalization (a piece was cut off from one open stock company and two stock companies have been formed, one of which will become state property) under conditions where there is no legal basis for doing so.
The Day’s source reports that the story is far from over. In the next series of this hotel soap opera we may see the Administration sell President-Hotel Kyivsky’s stock at a most attractive price. And the location of the hotel owners is unlikely to change (it will remain on Bankivska Street). The state will surely keep some shares, but whether it will be a controlling package is a big and naive question.







