Page 12 - UKRRptFeb21

According to a SPF press release put out on January 18 the actions of the law enforcement agencies are often illegal and can lead to the cancellation of the privatization process in 2021 that will cost the budget UAH12bn in lost income according to Sennychenko.
Last week law enforcement officers, allegedly under the orders of oligarchic groups raided UMCC as part of a criminal investigation that Sennychenko says broke normal protocols and so were illegal. Criminal proceedings were registered against the company in August 2020, which has lead to the current investigation.
According to Sennychenko, the investigation is part of a large campaign to put pressure on the UMCC and discredit the enterprise to make privatisation impossible, in the same way that the sale of OPP has been so effectively blocked.
For several months, the management of the UMCC has been accused of allegedly supplying products to the occupied territories in the Donbas, reports Interfax, and in the spring of 2020, the management were intimidated with the connected criminal charges. In addition, as with other​ ​attacks on the staff of the NBU​, the car of a senior member of the management board was torched amongst of incidents.
UMCC should be easy to sell. The company reported record profits in 2020 posting an income of UAH600mn ($21.3mn), which is six times more than in 2018 and 2019, reports Interfax.
The preparations for privatisation by the SPF are in their final stage and UMCC was due to go under gavel in the first quarter of this year.
The privatization of this asset is also provided for in the Memorandum of Ukraine with the International Monetary Fund (IMF) as part of negotiation for its SBA, so a failure to carry out the privatisation will be yet another obstacle to restarting the stalled SBA. Sixteen leading foreign companies have already expressed a preliminary interest in participating in the privatization auction, should it go ahead.
2.5​ ​Ukraine’s Cabinet caps gas prices
Ukraine’s cabinet decided at its weekly meeting on January 13 to introduce a regulated price for natural gas for households at the level of UAH6,990/tcm ($250/tcm), PM Denys Shmyhal reported the same day.
This is the lowest price on Ukraine’s recently launched energy exchange and about 30% below the price offered by private suppliers to households, Shmyhal said. The price will be introduced for the period of quarantine restrictions in Ukraine, or through the end of heating season, which is when natural gas consumption peaks. Meanwhile, he assured the public that the regulated price “does not mean the government is stepping out of the liberalized gas market.”
“This is a populist move in response to public protests in several key regions, including Kharkiv, related to recent gas price hikes for households. To score political points with them, the government is attributing its decision to concern
12​ UKRAINE Country Report​ February 2021 ​ ​www.intellinews.com