“Two state banks received funds from the EBRD for business lending, another attempt to sell the Belgorod-Dniester port failed: the main events in the life of state companies on September 8-14.”, — write: www.epravda.com.ua
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The former chairman of the board of “Ukrenergo” Kudrytskyi gave an interview. On September 2, 2024, Volodymyr Kudrytskyi, who was dismissed from the position of chairman of the board of Ukrenergo, gave an interview to “Economic Pravda” (“EP”). We have selected the key points.
About dismissal:
- “This story began far from last Monday, it is already three years old. Attempts to change the company’s management by the Ministry of Energy began as early as the end of 2021. When the powers of the previous supervisory board ended, there was such a “window” when the new supervisory board had not yet been created And then the Ministry of Energy issued an order to expand the board of “Ukrenergo”, to include five representatives nominated by the ministry, then it was canceled literally a day later, the situation ended with the appointment of a supervisory board with a majority of independent members. ” Then, in April 2022, there was an attempt to appoint several people nominated by the ministry to the company’s board through a letter from the deputy minister to the supervisory board, noted Kudrytskyi. [[In April 2022, the Deputy Minister of Energy addressed a letter to the supervisory board with a request to appoint two people from the ministry to the board, but it also did not work out.]
[Likeus[Якмиwrote almost three years ago, an attempt to change the government “Ukrenergo“ was even before the appointment of the supervisory board in December 2021 – that is, during the period when the Ministry of Energy exercised the powers of the company’s supervisory board. Then the ministry managed to terminate the powers of two members of the board “Ukrenergo“ – Andrii Nemyrovskyi and Maksym Yurkov.
“Ukrenergo“ reported that the Prosecutor General’s Office is conducting searches at the company’s head office based on the decision of the Pechersk District Court dated August 30, 2023. IN “Ukrenergo” then stated that they would willingly provide the investigators with all the necessary documents without a search, but the law enforcement officers did not request a voluntary handover.
Among the documents of interest to the investigation were some contracts that the State Audit Service of Ukraine (SASU) checked until March 2023. According to liga.net, the search was conducted as part of a criminal case opened by the Ministry of Internal Affairs on September 16, 2023, September 2023, based on the results of this audit. According to the publication, the mentioned contracts concern several companies that supplied goods and services “Ukrenergo“ in 2019-2023. IN “Ukrenergo” then stated that they are contesting the results of the inspection in court because they consider them “biased and unprofessional“a “some of them directly contradict the law“. – SOE Weekly.]
About the reasons for dismissal:
- “Since Ukrenergo has a turnover of UAH 100 billion and has attracted more than 1.5 billion euros of Western support, such a company is, of course, always in the focus of attention. Given that the Ministry of Energy has gained great influence over the regulator – NKRECP – through the appointment of people as members of the commission , who were recently employees of the Ministry of Energy, it turns out that there was only one “naughty” company in the sector.”
- “I think this change is related to the desire to gain more control over everything that happens in Ukrenergo. Perhaps the goal is to bring under manual control all these future investments in energy reconstruction and the development of new generation. In addition, of course , “Ukrenergo” has always been disturbed by the levels of purchase prices for equipment and materials that we have always published and which often turned out to be lower than those of other companies in the energy sector.”
- “It can be stated that now there is only one center of responsibility in the energy sector. It is the Ministry of Energy. It is responsible for everything that will happen in the state-owned companies of the industry or in the energy system.”
[Aswereported[Якмиповідомлялиearlieron September 2, 2024, the supervisory board of Ukrenergo dismissed Kudrytskyi by a majority vote. On the same day, Daniel Dobbeni (independent member and chairman of the supervisory board) and Peder Andreasen (independent member) announced that they had submitted applications for early termination of their powers. – SOE Weekly.]
About the protection of substations “Ukrenergo”:
- “The first level of protection is from debris [і він побудований на 100%]. The second is engineering structures that protect equipment from shahedes [і він побудований лише на підстанціях “Укренерго”, він не побудований на жодних інших об’єктах – наприклад, на електростанціях]the third – from missiles.”
- Kudrytskyi confirmed that 22 substations are subject to third-level protection, and approximately UAH 100 billion is needed for this. “This project is suspended because it is necessary to find money for it. “Ukrenergo” was not responsible for this project… The customer is the State Agency for Reconstruction, which concluded contracts with contractors… Currently, there is no leadership of the Agency for Reconstruction. When it is appointed, … task [буде знайти гроші на цей проєкт.]
[Aswereported[Якмиповідомлялиearlierthe reason for Kudrytskyi’s dismissal was the insufficient security of Ukrenergo facilities and, as a result, problems with electricity that arose after Russian shelling on August 26, 2024. – SOE Weekly.]
Ten candidates are applying for the position of the new chairman of the board of “PrivatBank”, writes Forbes Ukraine. Among them are the current top managers of “PrivatBank” and foreign bankers, adds edition.
According to the data Forbes Ukraineseveral Ukrainians can apply for the position:
- Artem Shevalov (deputy chairman Supervisory Board of “PrivatBank” – state representative);
- Dmytro Musienko (board member “PrivatBank” on issues of retail business);
- Evgeny Zaigraev (board member “PrivatBank” on issues of corporate and small and medium business;
- Anton Tyutyun (deputy chairman of the board of “Oschadbank”responsible for retail business);
- Volodymyr the Wise (chairman of the board “OTP Bank Ukraine”).
All the aforementioned candidates either refused to comment on their possible participation in the competitive selection, neither denying nor confirming it, or did not respond to a request for comment, added edition.
[[Disclosing the names of potential candidates for the position of chairman of the board is a bad practice that harms competitive selection. First, the prospective employer must ensure candidates’ confidentiality, as candidates rarely want their current employer to know that they are applying for another job. Second, candidate information is generally market sensitive. – SOE Weekly.]
According to the data Forbes Ukrainethe list of candidates also includes the following foreign bankers:
- three current top managers working in European banks – Swedbank, Intesa S anpaolo and Raiffeisen Bank. Edition does not name their names, as they still have employers in other countries;
[ItissurprisingthatForbesUkrainedecidedtodistinguishbetween”Ukrainian”and”foreign”candidatesAllthe”Ukrainian”candidateslistedabovecurrentlyalsohaveotheremployersInadditiononeofthemShevalovservesasamemberoftheboardofdirectorsoftheEuropeanBankforReconstructionandDevelopment(EBRD)inLondonGreatBritain[ДивнощоForbesУкраїнавирішилорозрізняти”українських”та”іноземних”кандидатівВсі”українські”кандидатиперерахованівищенаразітежмаютьіншихроботодавцівКрімтогоодинізнихШевальовобіймаєпосадучленарадидиректорівЄвропейськогобанкуреконструкціїтарозвитку(ЄБРР)уЛондоніВеликаБританія– SOE Weekly.]
- Reinis Rubenis (Latvia, former chairman of the board of Swedbank Latvia);
- Edgar Salzmann (Germany, former top manager at Postbank Deutschland).
“This time there is a request for a Ukrainian CEO”, – assumed interlocutor Forbes Ukraine.
[Aswereported[Якмиповідомлялиearlierat the end of June 2024, Gerhard Bösch resigned from the position of chairman of the board of PrivatBank. Read more about it in one of ours previous ones digests
We are too wrotethat Bösch’s contract expires on November 1, 2024. Read more about it in our previous digests – SOE Weekly.]
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“PrivatBank” will receive portfolio guarantees for 400 million euros from the EBRD for business lending. September 11, 2024 “PrivatBank” reportedwhich signed a risk-sharing agreement with the European Bank for Reconstruction and Development (EBRD), which will provide an opportunity to issue new loans in the amount of 400 million euros.
According to the bank, this agreement includes components that support lending:
- with the provision of grant support from international donors – for loans for investment purposes;
- projects to ensure energy independence for business clients;
- for condominiums and private individuals;
- for micro, small and medium customers;
- projects supporting women’s business, veteran business, relocated business and business affected by military actions.
The received financing will increase the possibilities of credit support for Ukrainian business and expand the financing of projects that contribute to the production of food products, energy efficiency and energy production, added in “PrivatBank”.
“Ukrgasbank” attracted EBRD guarantees for 150 million euros to finance investments in energy projects. September 12, 2024 “Ukrgasbank” reportedwhich joined the EBRD Energy Security Support Program (ESSF), which will provide better access to financing for energy security investments in Ukraine.
The EBRD provides Ukrgasbank with a portfolio risk-sharing credit line in the amount of EUR 150 million, which will support lending to small and medium-sized businesses (SMEs), private households, municipalities, and medium-sized corporate clients for the implementation of decentralized energy generation and energy efficiency improvement projects. reported in the bank
With the help of the ESSF, the EBRD will cover part of the risks of the relevant partner financial institutions regarding investments in decentralized energy, explained in “Ukrgasbank”.
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“Ukrnafta” received UAH 10.6 billion (EUR 256 million) in net profit for January-June 2024 (according to audit data). September 11, 2024 “Ukrnafta” statedthat the company Crowe Erfolg Ukraine, Crowe Audit & Accounting Ukraine completed an independent audit.
[Ukrnafta’sfinancialstatementswerenotavailableatthetimeofwritingthedigest[Фінансовазвітність”Укрнафти”небуладоступнанамоментнаписаннядайджесту
In addition, it follows from the above statement that “Ukrnafta” changed its auditor again. Before the company’s shares were seized by the state in November 2022, its financial statements were audited by the Big Four company – PwC. In April 2024, we wrotethat the company’s results for 2023 were checked by the Grant Thornton company, which seems to have checked Ukrnafta only for that year. – SOE Weekly.]
Ukrnafta also reported that for the first half of 2024, it paid UAH 20.2 billion (EUR 484 million) in taxes, duties, dividends and customs payments to the state budget.
“Since the beginning of state administration and the start of work of the new management at the end of 2022, the company has received almost UAH 40 billion (EUR 969 million) in profit,” – reported director of “Ukrnafta” Serhiy Koretskyi on his Facebook page.
[AsfarasweknowUkrnaftahasnotreleaseditsfinancialstatementswhetherauditedorunauditedorotherofficialstatementsfor2022or2023[Наскількинамвідомо”Укрнафта”неоприлюднюваласвоюфінансовузвітністьчитоаудійованучинеаудійовануабоіншуофіційнузвітністьза2022чи2023роки– SOE Weekly.]
As we reported earlier, “Ukrnafta” announced that it paid Naftogaz UAH 3.5 billion (EUR 81 million) in dividends, which fully covers its dividend obligations for the previous year.
[Inaccordancewith[Згіднозdecision According to the Cabinet of Ministers, Ukrnafta was to pay 30% of the net profit for 2023 in the form of dividends, and allocate another 50% of the profit to capital investments approved by the Cabinet of Ministers. – SOE Weekly.]
We are too wrotethat On March 1, 2024, “Ukrnafta” announced the approval of the company’s financial plan for 2024 by the Cabinet of Ministers.
Koretsky then reported that in 2023 Ukrnafta received UAH 24 billion in net profit (EUR 607 million at that time). Read more about it in one of ours previous ones digests
As we reported earlierin 2023 “Ukrnafta” paid over UAH 25 billion (632 million euros) taxes.
Before that we also wrote that the financial plan of “Ukrnafta” for 2023 approved by the Cabinet of Ministers provided for UAH 74 billion (EUR 1,871 million) net income from operating activities, UAH 12 billion (EUR 303 million) net profit and UAH 25 billion (EUR 632 million) tax payments.
Later we wrotethat in his analysis for Forbes Ukraine, CASE Ukraine economist Vasyl Povoroznyk cast doubt on Koretskyi’s statements about the company’s quarterly earnings, cost reductions, increased production and transparency.
He came to the conclusion that the financial results of Ukrnafta were affected by two factors: the increase in market prices for gasoline and diesel fuel (45% and 54%, respectively) and the sale of gas by Ukrnafta, which the company received at the expense of paying its historic debt to Naftogaz.
Povoroznyk also stated that the financial statements published by Naftogaz – the majority shareholder of Ukrnafta, which includes its reporting in its consolidated reporting – does not agree with the numbers that Koretsky called.
Earlier we also reported that the shares of “Ukrnafta”, “Ukrtatnafta”, “Motor Sichi”, “AvtoKrAZ” and “Zaporizhtransformator” (ZTR) were withdrawn “for the needs of the state” and transferred to the Ministry of Defense on November 6, 2022.
After the forced withdrawal of corporate rights, the state changed the supervisory boards and executive management of most of these companies. Serhiy Koretskyi, the former general director of the WOG gas station chain, was appointed head of both Ukrnafta (November 8) and Ukrtatnafta (November 10).
[Regardingtheresultsofanothercompany”Ukrtatnafta”nopublicstatementsweremadebuthersauditedorunauditedfinancialstatementsorotherofficialstatementsfor20222023orthefirsthalfof2024havenotbeenmadepublic[Щодорезультатівдіяльностііншоїкомпанії”Укртатнафти”публічнихзаявнеробилосяаїїаудійованачинеаудійованафінансовазвітністьабожіншаофіційназвітністьза2022рік2023рікчипершуполовину2024рокунеоприлюднювалася. – SOE Weekly.]
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The ninth attempt to sell the Belgorod-Dniester port failed. According to the data Prozorro. Salesauction for the sale of the Belgorod-Dniester sea trade port, planned by the State Property Fund of Ukraine (FSMU) on September 6, 2024, did not happen due to lack of applicants. Starting price constituted UAH 178 million (EUR 4.3 million). It was the ninth attempt to sell the port.
According to the data CASE Ukrainedespite the attractiveness of the asset, there are no applicants, as the port has debts in the amount of UAH 151.3 million (EUR 3.6 million). The winner will also have to pay VAT at 20% of the purchase price. That is, in general, the new owner would have to pay at least UAH 365 million (EUR 8.8 million), added in CASE Ukraine.
FSMU appointed another auction for the privatization of Bilhorod-Dniester port on September 16, 2024. Starting price decreased double – up to UAH 89 million (EUR 2.1 million).
[BasedonCASEUkrainedatathismeansthatthewinneroftheauctionwillhavetopayatleast258millionUAH(62millioneuros)[ЯкщоспиратисянаданіCASEУкраїнацеозначаєщопереможецьаукціонуповиненбудезаплатитищонайменше258млнгрн(62млнєвро)
The first auction for the privatization of the Belgorod-Dniester port in March 2023 did not take place, as no one registered for it.
At the second auction, the port was sold for UAH 220 million (EUR 5.6 million at the time) to Ukrdoninvest LLC, owned by Ukrainian businessman Vitaly Kropachev. However, “Ukrdoninvest” did not pay the funds.
Like us wrotethe company announced that it refused the purchase at the stage of negotiating the terms of the sales contract with the regional branch of the Federal State University in Odesa and Mykolaiv regions.
Later, the FSMU announced that it would put the Bilhorod-Dniester port up for privatization for the third time, but this auction also did not take place (see one of our previous ones digests).
In August 2024, former Deputy Minister of Infrastructure Viktor Dovgan posted post on Facebook, from which it appeared that Polish investors are considering the possibility of participating in the privatization of the port.
Read more about previous attempts to sell the port read in ours of the past digests. – SOE Weekly.]