OREANDA-NEWS. March 31, 2011. Ihor Kolomoisky, owner of Pryvat Group and the largest private shareholder (45%) of Ukrnafta, has flagged his support for the integration of Ukrnafta and Ukrtatnafta, a major oil refinery, in his press commentary on Mar 30. Mr. Kolomoisky noted that he supports the construction of a vertically integrated oil and gas company (VIOC) with the assets of Ukrnafta and Ukrtatnafta bundled together into a new legal entity.

Millennium Capital considers the news as NEGATIVE for UNAF. The vision of Mr. Kolomoysky regarding VOIC build may contradict the position of the Ukrainian government who sees takeover of Ukrtatnafta by Ukrnafta as a preferred option with painful negotiations on the issue looming ahead. Hence, we reiterate that we do not see the IPO of UNAF in the near future until the government and Pryvat come to terms.