Ukraine to sell at least 7 energy companies

April 12th, 2011 - 9:13 pm ICT by BNO News  

KIEV, UKRAINE (BNO NEWS) — The Ukrainian government said that at least seven energy companies would be auctioned off this year, in an effort to privatize and improve its energy operations.

Ukraine’s energy minister Yury Boiko said national authorities had decided to sell up to 25 percent of state-run oil and gas company Naftogaz for at least $5 to 6 billion, RIA Novosti reported, adding that five or six energy distribution companies and two energy generation companies would be privatized this year.

Previously, Ukrainian President Viktor Yanukovych late last month said that a partial privatization of Naftogaz was not ruled out, as it could optimize the company’s operations. In addition, Naftogaz CEO Yevhen Bakulin said earlier in March the company could hold an IPO in 2012-2013.

In 2010, Ukraine produced over 188 million kilowatt-hours of energy, an increase of 8.7 percent compared to the previous year, with most of its production coming from thermoelectric power stations, around 48 percent, and nuclear power plants, over 44 percent.

Furthermore, Ukraine’s energy exports surpassed 4.2 million kilowatt-hours in 2010, a 2.7 percent rise since 2009, as approximately 70 percent of the exported energy was supplied to Belarus, with Moldova, Romania, Hungary, Slovakia, and Russia.

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