Why Centrenergo Isn't Being Sold During Wartime
According to Dmytro Natalukha, head of Ukraine's State Property Fund, selling the energy company Centrenergo while the war continues is simply not feasible. In an interview with Glavkom, he explained that ongoing Russian strikes on the country's power grid make any such sale unrealistic. Offloading the firm now would mean offering it at a massive discount, effectively inviting investors into a high-risk scenario. Natalukha stressed that
“stepping into an asset that is a 100% target for attacks is, for any potential investor, a suicide mission.”
What the State Property Fund Plans Next
Instead, the Fund aims to put six to seven major assets up for privatization by the end of this year. These include:
- The Odesa Portside Plant
- The Demurynskyi Mining and Processing Plant
- Sumykhimprom
- Motordetal-Konotop
Centrenergo, however, is not on that list due to the extreme wartime risks. The company generates roughly 15% of all electricity in Ukraine and holds significant assets, including around 500,000 square meters of real estate and nearly 3,000 hectares of land. It also owns Remenergo, a subsidiary that repairs thermal power plant equipment.
Fund officials recently visited the Trypilska Thermal Power Plant, part of Centrenergo, which was heavily damaged by Russian strikes. The audit results were far worse than Natalukha had anticipated. He noted that after the fighting ends, the situation could change, adding that
“we will look at things from a completely different perspective.”
Potential post-war options for these energy assets include privatization, public-private partnerships, or keeping them under state control.
With the war still ongoing, the question of privatizing strategic energy assets like Centrenergo remains highly complex and requires careful risk assessment. The constant threat of Russian attacks not only jeopardizes any investment but also endangers Ukraine's critical energy infrastructure. As a result, the State Property Fund is focusing on other, less risky targets for privatization during this period.
As the situation with Centrenergo unfolds amidst ongoing conflict, it's important to consider the broader context of Ukraine's energy sector. Recent insights reveal that a significant portion of assets within the State Property Fund are classified as non-liquid, highlighting the challenges faced in asset management during wartime. This adds another layer of complexity to the potential future of energy privatization in Ukraine.