State Property Fund Loses Case

Earlier, the State Property Fund brought suit for restitution to the state of the Halychyna block of shares for "failure of the buyers' association to honor its pledge to invest $265.5 million in reconstruction of the enterprise," and demanded the association be fined Hr 48.5 million. In turn, the buyers' association announced the investment had been foiled due to lack of governmental guarantees over the Japanese export import bank's $236.3 million loan, at the expense of which it was planned to construct a high-octane gasoline production facility. As Infobank reports, the Halychyna Oil Refinery concluded a $285 million contract with Japanese companies Nissho Iwai and JGC back in 1997 to build a gasoline facility. As of today, the Halychyna buyers' association owns 30% of the oil refinery's authorized capital.