Ukraine’s president again scraps auction of Odessa Port Plant

17 September 2009 14:50  [Source: ICIS news]

MOSCOW (ICIS news)--Ukrainian president Viktor Yushchenko has again suspended the government's order allowing the privatisation of the Odessa Port Plant through the auction of a controlling stake, the presidential press service said in a statement released on Thursday.

The plant was of strategic importance to Ukraine and its privatisation would not be in the country's national interests, the statement said.

The state’s 99.567% stake in the plant was due to be auctioned on 29 September at an initial price of hryvnya (HRN) 4bn (€319m, $469m). On 16 September, Ukraine's State Property Fund announced it had received 13 bids.

The 1.5m tonne/year Odessa Port Plant is Ukraine's second-largest ammonia producer. Ukraine first announced plans to privatise the plant in 2004.

The stake was previously expected to be auctioned at an initial price of HRN3bn on 20 May 2008. Ukraine's Nortima, Russia's Eurochem and Estonia's Nitrofert were allowed to take part in the auction, but Yushchenko stopped proceedings in July.

(€1 = HRN12.54, $1 = HRN8.52)

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By: Sergei Blagov
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