EAVEX Weekly

December 17, 2018

The Ukrainian stock market ended lower last week amid the unsurprising news that the long-prepared privatization of electricity generation company CentrEnergo failed to take place as scheduled on Dec 13. This marks the 7th consecutive year that the government has failed to sell the giant state enterprise. This would have been the biggest privatization auction of the year, with the government offering a 78% stake in the company with a starting price of UAH 5.98bn (USD 215mn). The auction became controversial after it emerged that the most likely winner was going to be Kyiv-based UkrDonInvest, which is controlled by Vitaliy Kropachev, a businessman connected to President Poroshenko’s entourage. The State Property Fund cancelled the auction after throwing out two bids, including UkrDonInvest’s bid, because of insider ties. It was reported earlier that 5 bidders had expressed interest in the auction but none of them were qualified.