Ukraine publishes updated 2018 privatization schedule

Макроэкономика 19.12.2017 Ukraine’s State Property Fund (SPF) published on Dec. 18 its preliminary 2018 schedule of large asset privatization. The schedule includes the remaining controlling stakes in nitrogen fertilizer producer Odesa Portside Plant (February), power GenCo Centrenergo (CEEN UK, June) and five power distribution companies (September-October). It also includes a 68% stake in Zaporizhia Aluminum Plant (February) nationalized in 2015 and a 46% stake in power DisCo Cherkasyoblenergo (October, to be sold on the local stock exchange), as well as almost 100% stakes in four small heat and power plants and Sumykhimprom chemical plant. Most of the scheduled assets are subject to sale upon approval of privatization conditions by the Cabinet, the SPF noted. Alexander Paraschiy: This is part of the SPF's traditional annual scheduling that does not imply any commitment from the Fund. The list of companies is just migrating from one schedule to another. But at least it allows us to see what assets the Fund is not going to offer. This time, we found no controlling stake in the Turboatom (TATM UK) power turbine producer (its sale was mentioned by the IMF in its latest memorandum). Also, it is strange to see just a 46% stake in Cherkasyoblenergo, in which the state holds 71%. Also, the scheduling of Centrenergo’s stake contradicts to what the Fund’s acting head had said about the sale occuring next spring. We traditionally are skeptical about the fulfillment of the schedule in 2018. However, it’s very likely that the state will do its best to sell Odesa Portside (after two failed tenders in 2016) and Zaporizhia Aluminum (which it should have sold within 12 months after its nationalization in June 2015).