OREANDA-NEWS. August 04, 2015. DTEK intends to challenge the decision of the Kyiv Economic Court on the claim filed by the General Prosecutor's Office of Ukraine against the Cabinet of Ministers of Ukraine, the State Property Fund of Ukraine and DTEK Holdings Limited (Cyprus) on declaring the privatization of 25% shares in Dniproenergo illegal.

“We believe today's decision of the Kyiv Economic Court to be ungrounded and illegal,” said Serhiy V. Piontkovsky, partner of Baker & McKenzie, which represents DTEK's interests in court. “The General Prosecutor's Office is groundlessly trying to contest the actions and decisions made by the Government and the State Property Fund regarding the privatization of 25% shares in Dniproenergo, which were bought in full compliance with the legislation at a public tender at the price requested by the State Property Fund on the basis of an independent valuation. Furthermore, the General Prosecutor's Office failed to provide any proof of the damage to the state or violation of the state interests caused by the privatization of shares in Dniproenergo PJSC. Moreover, the private investor that in good faith paid almost UAH 1.18 bln for Dniproenergo shares is being held liable for everything. The decision of the Kyiv Economic Court makes us question the security of property rights and investments in Ukraine. We do not agree with the court decision and will file a statement of appeal and continue to assert the lawful rights of our client.”

‘Significant violations were committed during the court proceedings. The court chose to ignore and not to examine the evidence and motions provided and filed by the representatives of the CMU, SPFU and DTEK,” said Oleksiy Zakharchuk, DTEK Regulatory and Legal Issues Director. “Unfortunately, the court satisfied the claim that is blatantly far-fetched.”

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DTEK is a strategic holding company that manages three operational sub-holding companies with the assets in the conventional energy sector, alternative energy and hydrocarbons production. It is part of the financial and industrial group System Capital Management (SCM). The shareholder of the group is Rinat Akhmetov. Maxim Timchenko is the Chief Executive Officer of DTEK. Currently, DTEK employs 127 thousand people.

The assets portfolio is represented by 10 thermal power plants and 2 combined heat and power plants with 18.6 GW of total installed capacity; five electricity distribution and sales enterprises, which provide services to over 5.2 million customers – both individuals and legal entities; 31 mines and 13 coal-processing plants. The alternative energy sector is represented by one wind farm with the designed installed capacity of 200 MW. Hydrocarbons are produced at two fields with proven natural gas reserves of 20 bln cubic meters.

In 2014, DTEK’s enterprises generated 47.8 bln kWh, including 651 kWh generated by the wind farm; transmitted 53.8 bln kWh of electricity; coal output equalled 37.1 mln tonnes and natural gas - 752 mln cubic meters.

For more information, visit www.dtek.com.

To learn about the social partnership projects in progress in the towns and cities of DTEK's companies' operations and get a detailed status report on their implementation, visit www.spp-dtek.com.ua