OREANDA-NEWS. June 07, 2010. On 2 June 2010, the District Administrative Court of Kyiv voided The Cabinet of Ministers implementing order to transfer the stocks of the 15 DisCos to the State Property Fund of Ukraine for a subsequent sale.  The Cabinet of Ministers implementing order #894-r of 29 July  2009 sought to sell off 60%+1 Government stakes in Vinnytsiaoblenergo  <VIEN UK N/R>,  Volynoblenergo <VOEN UK N/R>, Dniprooblenergo  <DNON UK N/R>, Zakarpattiaoblenergo  <ZOEN UK N/R>, Khmelnytskoblenergo <HMON UK N / R>, Krymenergo <KREN UK U/R>, Mykolayivoblenergo <MOEN UK N/R>,  Chernivtsioblenergo  <CHEN UK N/R>, Donetskoblenergo <DOON UK N/R>, and Kharkivoblenergo <HAON UK U/R>, as well as 60.25% in Zaporizhoblenergo <ZAON UK N/R>, 60.06% in Luganskoblenergo <LOEN UK N/R>, 51%  in Ternopiloblenergo <TOEN UK N / R>,  50% +1 in Kyivenergo <KIEN UK U/R>, and 46% in Cherkasyoblenergo <CHON UK N/R>.  Prosecutor’s General Office is looking for nearly UAH 1bn of the deposit that had been earlier accepted by the SPF from bidders to participate in the Odessa Portside Plant privatization tender.

Millennium Capital sees this news as positive for the aforementioned companies. Although privatization in general could be good for the Companies, Millennium Capital believes it is not the right time to sell them now. Millennium Capital believes it is unreasonable to sell power distribution companies before the power market reform has been fully implemented. Moreover, all DisCos, in contrast to GenCos, are profitable earning profits, first of all profits for their major shareholder, the Government of Ukraine.