THE GOVERNMENT APPROVED THE STARTING PRICE AND CONDITIONS OF SALE OF ODESSA PORTSIDE PLANT

The Cabinet of Ministers of Ukraine at the meeting on 18 may,2016 agreed on terms of sale of the state stake in PJSC "Odessa PortsidePlant". After the processing and signing of the order of the Government,the State Property Fundof Ukraine willannounce a competition in their official publication "VedomostyPrivatization" and will place the full text of the terms and conditions on the official website.

"The tender Commission for privatization of "OPP" has determined the starting price in the amount of 13 billion 175 million UAHand the terms of the sale of the plant, which arenow approved by the CMU, the Chairman of the State Property Fund,Igor Bilous, announced. – In addition, on behalf of the Prime Minister and the results of the meeting of the Working Group, it was decided that the competition with openness of the offer of the price by the principle of auction on sale of state stakeof shares of PJSC "Odessa PortsidePlant" will be held only in case of presence of at least two participants, one of them must be a non-resident".

The conditions of competition were designed as a reslt ofthe discussion at the meeting of the tender Commission, consisting of representatives of PJSC, Ministry of Economic Development and Trade, Ministry of Finance, Odessa Regional State Administration,Special Control Commissionof VRUon Privatization, Security Service, National Police of Ukraine and Yuzhnensky city Council of Odessa region, as well as representatives of Labor-Union Committee of PJSC.

Under these conditions, persons whoare eligible to participateare that ones who canbuyobjects of privatization under article 8 of the law of Ukraine "On privatization of State Property". Potential buyers-legal entities are obliged to submit to SPFUa paper on the distribution of share capital among the participants, as well as information about financial and property status. Potential buyers– natural personsmust provide a certificate of authority of revenues and duties on filed tax returns.

Alongwith the application for the competition,potential participants must supplyinformation on potential buyers of privatization objects or persons in whose interests the state objects are acquired, their founders, participants, including natural persons – ultimate beneficial owners (controllers).
Not allowed to participate are legal entities which aremore thanon25% of shares owned bythe state of Ukraine, as well as state economic enterprises, state holding companies, state joint-stock companies, their subsidiaries and enterprises, state authorities, employees of state privatization bodies, persons, registered in offshore zones or in countries included in the FATF "black" list.

Also not allowedto participate arelegal and physical persons who are under sanctions or registered in the state, recognized by the Verkhovna Rada of Ukraine asthe aggressor state, and associated entities.

Investment conditions,that must be performed by the buyer of the shares, will be made public after the signing of the CMU Orderon approval of the terms of theOPPsale.