27.11.02

Ukraine to sell controlling shares in Ukrnafta

Ukraine is to sell controlling shares in the oil production company Ukrnafta, Naftohaz Ukrayiny CEO Yuri Boiko told journalists on Tuesday (Naftohaz Ukrayiny owns 50% plus one share in Ukrnafta).

He sad that Ukrainian President Leonid Kuchma initiated the sale and ordered that the corresponding draft resolution be prepared and initialed by Naftohaz Ukrayiny and the Ukrainian Property Fund.

This resolution is currently with the Property Fund.

Boiko noted that the decision to sell the share packet was reached due to the fact that company shareholders have for a long time been unable to reach agreement among themselves, which is affecting the company's performance.

Boiko did not name a date for the sale.

A group of companies represented by UkrSibBank and PrivatBank owns over 40% of the company's shares.

Ukrnafta net profit in January-September 2002 fell 58.7% year-on- year to amount to 309.5 million hryvna. In the reporting period the company increased oil production 0.2% year-on-year to amount to 2.106 million tonnes. However, gas production fell 2% to 2.424 billion cubic meters.

The official exchange rate on November 26 was 5.3304 hryvna to the dollar.