Government approves compulsory sale of Odesa refinery
10 June 2024 11:22
The Cabinet of Ministers of Ukraine has accepted the proposal of the Asset Management Agency (ARMA) to compulsorily seize the Odesa Oil Refinery in the interests of the state. The decision was made on 7 June, reports [Kommersant] reports citing the ARMA press service.
According to Pavlo Velykorechanin, Deputy Head of the ARMA, this decision allows for the forcible seizure of the property of the Russian Federation and its residents. This refers to corporate rights in the amount of 99.5766% of the shares of this plant and its debt obligations to residents of the Russian Federation, as well as 100% of the authorised capital of Energy and Gas Ukraine LLC.
The agency did not specify the amount of the plant’s debt to residents of the Russian Federation. However, as reported by the media in 2016, it could be as high as UAH 14-19 billion.
Odesa Oil Refinery
The Odesa Oil Refinery started operations in 1937 and quickly became a key player in supplying the southern regions of the country with a variety of petroleum products.
Its product range includes petrol, diesel and jet fuel, fuel oil, bitumen and sulphur.
The refinery’s ownership history has been turbulent. Since 1991 it has been state-owned, and since 1997 Odesa Refinery has been on two lists simultaneously: one for privatisation and one for strategic enterprises. In 1999, 51.9% of the plant’s shares were sold to the Russian company Lukoil and its affiliates. In 2013, Lukoil sold the plant to a young Ukrainian oligarch, Serhiy Kurchenko. In 2017, the state confiscated the refinery.
