Government drops idea of privatizing regional power suppliers.

With regards to the issue of energy, the Cabinet of Ministers, together with the State Property Fund of Ukraine (SPF), will remove state-owned stakes of shares in operators of electricity distribution systems (regional power supply companies) from the list of large privatization objects and the list of small privatization objects and instead transfer them to the management of the Ministry of Energy. This follows the decision of the NSDC made on July 30 which was put into effect by presidential

With six major state companies scheduled for privatization auctions during the second half of this year,

75% of revenue is to come from “the sale of ‘blue chips,’ the worn-out but potentially competitive industrial giants inherited from Soviet Ukraine,” Dmytro Sennychenko, head of the State Property Fund, writes in an Atlantic Council blog. Noting that 16 companies have registered interest in the Aug. 31 auction of United Mining and Chemical Company, a major titanium miner, Sennychenko writes: “We can confirm that international investor interest in Ukraine’s privatization program is back.”

Clearing the way for the biggest privatization of this year,

Ukraine’s Supreme Court refused to recognize a decision by Stockholm’s Arbitration Institute to award Dmytro Firtash’s Ostchem over $300 million from state-owned Odesa Port Plant. “This is a final decision that is not subject to appeal,” Dmytro Sennychenko, head of the State Property Fund, told Interfax-Ukraine yesterday. Looking ahead to a sale of the chemical producer through auction, he said: “This will help expand the pool of potential buyers and dramatically increase the value of the asset.”