BYuT UKRAINE
GOVERNMENT PORTAL
INFORM NEWSLETTER
Odessa port plant privatisation postponed
19 May 2008
Published in
Inform
issue #71
See the full issue here.
Ukraine’s parliamentary government is at odds with the president’s office over the sale of the Odessa Port Plant, a major Black Sea fertiliser plant earmarked for privatisation. Yesterday the government postponed its plans for a transparent auction of the plant scheduled for today.
The decision came after a decree issued last Friday by President Viktor Yushchenko, which banned the sale along with several other companies slated for privatisation, on the grounds of their strategic importance to the country. The decision was adopted at a meeting of the National Security Defence Council.
Heightening the confrontation further, the prosecutor general’s office has launched criminal procedures against Andriy Portnov, the acting head of the State Property Fund. Mr Portnov was accused of attempting to conduct a privatisation illegally.
Speaking last week Mr Portnov, who was appointed by the Cabinet of Ministers, said that three companies had registered for the auction: Yevrokhim from Russia, Nortima from Ukraine and Nitrofert from Estonia. The starting price for the plant is UAH 3 billion (about $600 million).
See the full issue here.
Ukraine’s parliamentary government is at odds with the president’s office over the sale of the Odessa Port Plant, a major Black Sea fertiliser plant earmarked for privatisation. Yesterday the government postponed its plans for a transparent auction of the plant scheduled for today.
The decision came after a decree issued last Friday by President Viktor Yushchenko, which banned the sale along with several other companies slated for privatisation, on the grounds of their strategic importance to the country. The decision was adopted at a meeting of the National Security Defence Council.
Heightening the confrontation further, the prosecutor general’s office has launched criminal procedures against Andriy Portnov, the acting head of the State Property Fund. Mr Portnov was accused of attempting to conduct a privatisation illegally.
Speaking last week Mr Portnov, who was appointed by the Cabinet of Ministers, said that three companies had registered for the auction: Yevrokhim from Russia, Nortima from Ukraine and Nitrofert from Estonia. The starting price for the plant is UAH 3 billion (about $600 million).
Analysts have disputed President Yushchenko’s reason
for banning the privatisation, arguing that the
fertiliser plant is in no way a monopoly or of any
notable strategic value to the nation.
It is widely believed that the president wants to starve the government of much needed privatisation revenues, so that the Tymoshenko-government’s social reforms and, in particular, its bank savings repayment programme, will grind to a halt. This, it is hoped, would severely dent Ms Tymoshenko’s popularity ahead of the 2010 presidential election.
“It is disgraceful that initiatives designed to benefit millions of citizens should become a political football. This and other privatisations should go ahead in a fair and transparent fashion,” said Ms Tymoshenko.
It is widely believed that the president wants to starve the government of much needed privatisation revenues, so that the Tymoshenko-government’s social reforms and, in particular, its bank savings repayment programme, will grind to a halt. This, it is hoped, would severely dent Ms Tymoshenko’s popularity ahead of the 2010 presidential election.
“It is disgraceful that initiatives designed to benefit millions of citizens should become a political football. This and other privatisations should go ahead in a fair and transparent fashion,” said Ms Tymoshenko.