26-07-04 Ukrainian President Leonid Kuchma has reversed a decision to cut the stake a state-owned oil and gas company has in Ukrneft, the country's largest oil producer, a government source told.
Kuchma signed a ruling stipulating a transfer of Neftegaz Ukrayiny’s 49 % stake in Ukrneft to the state property fund, with Neftegaz retaining a mere 1 %-plus-one-share stake. However, that didn't come to pass, said the source said.

Mikhail Chechetov, chairman of the state property fund, said Ukraine plans in September to decide on how to organize a new state oil and gas company.
The new company would be based around Ukrneft and is expected to include government stakes in the Ukrtatnafta oil refinery, Galichina oil refinery and Neftekhimik Prikarpatya, he said. After the stakes have been appraised, the new company will invite an outside investor to take a stake following a share issue, Chechetov said. However, the government is expected to retain control over the new company following the additional issue.

The company's creation is expected to increase the government's influence on the domestic oil product market, which is currently controlled by Russian oil companies.
Earlier, Kuchma ordered the government to transfer its 43 % stake in Ukrtatnafta and 25 % stake in the Galichina refinery to Ukrneft.