State Property Fund: Ukrtelecom returns to state ownership

The Kyiv’s Business Court satisfied the claim of the State Property Fund in a case concerning termination of the sale and purchase agreement of the block of shares of OJSC “Ukrtelecom” and turned the company into state ownership.

The Chief of the State Property Fund Vitalii Trubarov announced this.

According to Vitalii Trubarov, the Kyiv’s Business Court terminated the sale and purchase agreement with the company ESU LLC of the block of shares of OJSC "Ukrtelecom", has decided to return the block of shares in the amount of 92.791% of the authorized capital to the state property and to charge a fine of 81.9 million dollars for non-fulfillment of investment obligations.

"As a result of the inspection in February 2017, the failure of the company ESU to implement the investment plan, which provided for investment in the amount of at least 450 million dollars over a period of 5 years," said Vitalii Trubarov.

The Chief of the State Property Fund also emphasizes that Ukrtelecom did not fulfill the direct condition of the contract, which included the transfer of a special purpose telecommunication network to the state's property.

Vitalii Trubarov stresses that the privatization law does not provide for any compensation to the investor for the purchased share in case of returning the privatized object to the state property, since this norm was withdrawn in 2012.

As previously reported, the State Property Fund of Ukraine by the end of the year will inspect 32 enterprises for the purpose of executing their sale and purchase agreement, in particular, investment obligations.

The SPFU reported that the verification will be held in "Vinnytsyaoblenergo", "Volynoblenergo", "Volyngaz", "Zhytomyrgaz", "Zaporizzhyagaz", "Nizhyn Plant of Agricultural Machinery", Airline Company "Gorlitsa", IPC of the Kiev State Enterprise "Izumrud" and others.