Ukraine twice reduced the price of the first lot of “big privatization”

A new auction for the sale of the state-owned package of 99, 567% shares of Odessa portside plant (OPP) is scheduled for December 14, 2016, according to the state property Fund of Ukraine (SPF). In previous times the trades tried to hold on July 18, but they did not take place due to the complete lack of applications.

Ukrainian authorities expect that this time investors will draw sharp decline in the price of the first lot of “big privatization”, which is from Kiev required by lenders in the face of International monetary Fund (IMF). In summer, the starting price of state shares of IPF was $ 13,175 billion, or approximately $522 million At the December auction auction decided to start with a mark of 5.16 billion hryvnia, which is now approximately $202,5 million

In terms of competition, the new owner of a HMO should not change the main activities of the factory specializing in the manufacture of fertilizers and nitrogen compounds, and need to upgrade production capacity and to retain the workforce. In addition, he is obliged to ensure the unhindered reception, storage and shipment of liquid ammonia delivered to the port of Odessa through the pipeline and railway, as well as perform a number of other conditions, including to repay indebtedness of the company delivered to him by the company “Naftogaz of Ukraine” natural gas, to ensure the full and timely payment of taxes and other obligatory payments to the budget and increase the salaries of workers.

Recall that in early September of 2016, the Economic court of Odessa region under the claim of company “UkrGaz” was seized on account of the SCR. The gas companies need to recover the factory 100,635 million hryvnias on account of repayment of debts for the supplied gas, and pay more than 4 million hryvnias of a penalty and 1,695 million court fees for filing claim.

To tender still will not be allowed by the Russians, as well as the company among the shareholders of whom are residents of Russia and of the person in respect of whom the authorities of Ukraine introduced sanctions.

According to the approved in may 2016 the government of Ukraine conditions, the auction can take place only if the desire to compete for the HMO will Express at least two investors, including one foreign.

Earlier, Prime Minister of Ukraine Volodymyr Groysman stressed the necessity to know in advance who exactly applies for the purchase of AES, to clearly know not only the name of the applicant company, but who really owns it.

“This plant has always been a sinecure for anyone who tried to take possession of them in order to get the shadow income. Therefore, it is very important to management, public privatization has caused and trust companies and international partners ensured, including effective fight against corruption, which is a parasite on government assets, government finances,” — said Groisman.

The President of Ukraine Petro Poroshenko called the privatization of one of the main tasks of the government, Vladimir Groisman, who was replaced as Prime Minister Arseniy Yatsenyuk.