Was the “Zakarpattyaoblenergo” privatized illegally?

The Prosecutor General’s Office appealed to the court to recognize the privatization of the "Dniproenergo" JSC, the "Zakarpattyaoblenergo" JSC and the "Donbasenergo" JSC illegal.

This was said in the statement of the press service of the Prosecutor General’s Office.

"Implementing the constitutional function of representation of citizens and the state in court, the Prosecutor General’s Office as an independent plaintiff on April 3, 2015 appealed to the court for recognition of the disposition of state-owned shares of the "Dniproenergo" JSC and the "Zakarpattyaoblenergo" JSC, illegal" – the statement says.

In addition, the court is considering the claim of the Prosecutor’s Office for invalidation and cancellation of the deeds of the Cabinet of Ministers and the State Property Fund on the privatization of the state-owned shares of the "Donbasenergo" JSC.

As noted, due to lack of competition, state-owned shares of the "Dniproenergo" JSC were sold at the price only 0.48% above the starting price and the "Zakarpattyaoblenergo" JSC – 4.2% above the starting price.

In that way, corporate rights at more than UAH 2 billion were disposed of. For comparison, the recent privatization of 25% of state-owned shares of the same "Zakarpattyaoblenergo" JSC was done at the price that is 3.9 times higher than the starting price.

By proving in court the illegality of the disposition of the state-owned shares of these companies, it will be possible to re-sell them under fair conditions and receive significantly higher revenues, including through possible participation of foreign investors in the auction. 

Recall, according to media, the "Donbasenergo" JSC belongs to Oleksandr Yanukovych.

The main owner of the "DTEK Dniproenergo" is Rinat Akhmetov’s "DTEK Holdings Limited", who owns 68% of the energy company, 25% is owned by the state NAC "Energy Company of Ukraine".

It was reported that 50% of the shares of the "Zakarpattyaoblenergo" belong to the "Enerhetychna Ukraina TV" (Kyiv), another 22.5% are owned by other 46 legal entities and physical persons own 2.5%.

Ekonomichna Pravda