Rada sells Krivorozhstal, but not Ukrnafta

Yesterday the Rada made fundamental decisions regarding attractive state property. Deputies banned the sale to private hands of Ukrnafta, a monopoly oil and gas production company of Ukrainian origin. The list of objects not subject to privatization includes the Odessa Port Plant and the Turboatom enterprise. Both enterprises were involved in numerous scandals associated with both the previous and the new government.

At the same time, the Rada did not support the proposal to ban the sale of Krivorozhstal, which the government of Yulia Tymoshenko returned to state ownership, having taken it through the courts from Viktor Pinchuk, the son-in-law of former President Leonid Kuchma. Even during the 2004 election campaign, current President Viktor Yushchenko promised to return the “stolen” Krivorozhstal to state ownership. Yuri Yekhanurov, who replaced Tymoshenko as prime minister, promised upon taking office that the policy of reprivatization was over. Now Krivorozhstal will be sold at a new competition. At the same time, its former owner, Victor Pinchuk, will apparently have advantages over other participants if he pays extra for this property at market value.

Yesterday, the State Property Fund reported that 93.02% of Krivorozhstal shares are being claimed by nine buyers with whom the fund has entered into confidential agreements on participation in the competition. Ukrainian media report that five potential buyers are non-residents, four are residents of Ukraine. Among them there are Russian businessmen.

Svetlana STEPANENKO, Kyiv