Ukrtelecom owner disputes findings on ‘failed’ privatisation obligations

24 Feb 2017

Ukraine’s State Property Fund (SPF) has issued a report concluding that the obligations specified in the privatisation contract of incumbent national telco Ukrtelecom in 2011 were not fully met by its private sector ownership. As reported by BizLiga, the SPF carried out reviews between May 2016 and February 2017, checking ‘more than 50’ obligations. However, Ukrtelecom’s current parent, conglomerate SCM Group – itself wholly owned by Ukraine’s richest man Rinat Akhmetov – countered the SPF’s findings as being irrelevant as they relate to the acts or omissions of the telco’s previous owner, Austrian investment fund Epic, from which SCM acquired ownership of Ukrtelecom via holding company Epic Services Ukraine (ESU) in 2013. The group added that it is ready to defend its position if the SPF decides to launch court action based on the review, pointing out that Ukrtelecom displays stable financial results, is profitable, carries out widespread network modernisation nationwide and annually pays nearly UAH2 billion (USD73.3 million) into the state budget.

Ukraine, Ukrtelecom (incl. TriMob)