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production drop by 36% due to the cut off anthracite coal from the Russia-controlled section of the Donbas. With alternative coal sources in place, the company is seeing electricity production bounce back this year.
DTEK won’t participate in the privatization of attractive utility of Centrenergo electricity generating company , DTEK CEO Maksym Tymchenko said reports Interfax. "No, we have said this several times," he told reporters on Thursday. He evaded the question about the fairness of the starting price of 78.289% stake in Centrenergo of UAH5.985bn ($213mn) recently approved by the Cabinet of Ministers. "It is hard to comment on the appraisal that Ernst & Young made. Perhaps they are right in their assessment, but for each investor there are assumptions to say this a lot or a little. Everyone builds his own business model for managing privatization assets," he said. According to Tymchenko, DTEK is interested in the effectiveness of the tender and the entry of large foreign companies into the Ukrainian thermal generation market in order to jointly promote reforms in the country's electricity sector. "I really wish that investors from other countries appear here. We will applaud if we are able to hold a tender and bring here large companies that will be with us on one side of the table in advancing reforms," he said. The sale of the stake in Centrenergo is the biggest and most attractive asset on the docket this year, however, fears have appeared that the sale will be an inside deal . Businessmen close to President Petro Poroshenko have massively increased their share of coal supplies to the utility making it hostage to its suppliers. DTEK used to be a major supplier of coal to the company but has been shut out of the supply chain this year. Nevertheless, a privatization process has restarted in Ukraine and DTEK bought up government stakes in several utility companies where it already a stake holder or majority shareholder earlier this year.
The State Property Fund of Ukraine (SPF) has sold 84 units of the so-called small-sized privatisation via auctions for UAH84mn ($3mn) in the first month and a half months since the start of the procedure, SPF head Vitaliy Trubarov said in a statement published on the Fund's official page on October 10. In March, a news law on privatisation of state and municipal property in Ukraine come into force. The law introduces two methods of sale - an auction and acquisition of privatization facilities if the property was already leased at the time of the adoption of the law. The document set 11 months of preparation for privatisation of large facilities and five months for small-sized ones. One of the key points of the bill is privatisation under English law. By January 1, 2021, buyers of privatisation facilities have the right to demand that all legal agreements be concluded under the law of England and Wales, according to the Ukrinform news agency.
43 UKRAINE Country Report November 2018 www.intellinews.com