After long deliberation awaiting rich Western patrons ready to invest, the Cabinet approved the privatization terms for six regional (oblenerho) energy-supplying enterprises last week, namely the state joint stock compan Zhytomyroblenerho, Ternopiloblenerho, Sevastopolmiskenerho, Cherkasyoblenerho, Zakarpattiaoblenerho, and Kirovohradoblenerho, with the state retaining a blocking 25% + 1 share for the next three years.
However, Olena Zolotariova, chairperson of the board of the Ukrainian Independent Energy Suppliers Association, told The Day that this decision is no cause for celebration. The said oblenerho regional energy-supplying companies are all on the verge of bankruptcy. The little they earn is channeled back into the feverish national energy market, and there is little hope of finding a strategic partner with deep and open pockets. Here one can expect only "portfolio investors," betting on a rise for the oblenerho's stock, because nothing has changed in the energy industry. The structure is government-controlled and management centralized in the best Soviet tradition, meaning that there are two major steps still to be made: straightening out the energy market and handing the government-owned oblenerho blocks of shares over to private holders. In part, Ms. Zolotariova states, the Association is working on documents to unite such portfolio investors into consolidated ones with the right to choose the person to manage the government stocks, while having the management of a given enterprise lend a hand in raising these stocks’ market value.






