KYIV, July 17 – Ukrainian President Leonid Kuchma signed a decree allowing for privatization of state stakes in seven oblenergos with the aim of attracting foreign investors, a senior official said on Monday.
Pavlo Haidutsky, deputy head of the presidential administration, told a news briefing the state would privatize its 25 percent plus one share stakes in the following companies:
- Zhytomyroblenergo
- Kyivoblenergo
- Kyrovohradoblenergo
- Mykolayivoblenergo
- Rivneoblenergo
- Khersonoblenergo, and
- Sevastopolmiskenergo.
Investment bank Credit Suisse First Boston will advise the government on privatizing the seven companies.
State Property Fund officials had said previously the tenders to sell the oblenergos might take place at the end of this year or at the start of 2001.
Ukraine is under pressure from Western creditors to restructure its ailing energy sector.
Privatization of key state assets is also one of the key conditions under a stalled $2.6 billion International Monetary Fund loan program which the government is eager to get back on track.
