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Privatization Second-Hand

10 February, 00:00

During the World Economic Forum in Davis (Switzerland), Premier Valery Pustovoitenko launched a campaign to advertise and promote Ukrainian strategic enterprises, reports Yana Moyseenkova, Den. The Prime-Ministry called potential foreign investors to take part in privatization of two power generating companies, 122 power distribution complexes, 300 grain reception centers and elevators, 8 oil refineries and oil distribution facilities.

Let's see what part of the "strategic pie" the Premier actually offers to potential investors. One may recall that late November Volodymyr Lanovyi, Acting Head of the State Property Fund, stated that the main principles for privatization of power generating companies provided for 51% of shares (controlling block) to be hold by the state for a period of 5 years; energy supply companies — 26% of shares (forbidding block). Then it was conditioned that 25% of shares of these strategic enterprises be sold on preferential terms to employees and management and the rest would be offered on the stock market and commercial auctions. What sane foreign investor will venture to invest his money on such terms: assuming a heap of obligations (including debt redemption), without being an owner of a facility he paying for?

Besides, one can also recall the assumption of one competent person from the State Property Fund that someone of current state leaders wouldn't mind buying these strategic enterprises so extensively advertised by the Premier. At the same time Mr. Lanovy said that maybe in future the issue of holding large "energy" blocks of shares by the state would be revised... Will the investors live to see it?

Newspaper output №:

№1, (1998)

Section

Economy