The regional operators of electricity distribution in Ukraine will be removed from the State Property Fund of Ukraine’s list of companies for privatization.
The Cabinet of Ministers and the State Property Fund of Ukraine will not be privatizing the regional energy distribution companies after all. This was decided by presidential decree on August 28, Interfax-Ukraine reported.
“To complete the implementation of measures to separate the activities of operators of electricity distribution systems, which shares are state-owned, and universal service providers, and to transfer state-owned universal service providers to the management of the state-owned enterprise National Nuclear Energy Generating Company Energoatom,” it is said in the document.
Many of the shares in several companies has been prepared for privatization, but that will not be happening after all. Quite similar companies, the regional gas distribution companies, have been privatized previously.
That was not without problems, as oligarch Firtash is controlling them now. The overlap between being privately owned and only serving the state as a costumer makes possibilities for corruption abundant.
Skimming and other sorts of graft are allegations frequently hurled at Firtash and his gas distribution network, and that might be what the government wants to avoid happening inside the sphere of energy distribution.
Though privatization of state-owned companies is believed to be an important tool for battling corruption in Ukraine, it is not necessarily always the solution – at least in this case, it seems the President believes so.