Ukrainian State Property Fund to auction LINOS oil refinery
On April 25, the Ukrainian State Property Fund announced an auction for a 67.41 % stake in Lysychansknaftoorgsintez
(LINOS) oil refinery. The starting price of the package is set at 48.5 mm hryvnyas. The outcome of the auction is due
to be released in late June 2000.
The terms of the auction require its winner to pay off the remaining debt on a credit from the German WestLB bank,
18.85 mm euros in debts to the Ukrainian finance ministry and a 10.7 mm hryvnyas debt to the state budget. The
potential winner is also required to replenish LINOS' working capital, to the tune of 13 mm hryvnyas.
In the next five years, it will have to be put 60 mm hryvnyas into LINOS to retool it and develop its production. The
auction winner must also ensure annual oil supplies to the refinery of at least 4 mm tpy. Oleksandr Bondar, chairman
of the Ukrainian state property fund, cited Russia's Tyumenneft (TNK) as the most likely buyer of the refinery.
In 1999, Lysychansknaftoorgsintez (LINOS) produced 155.6 mm hryvnyas worth of products. The value of its exports
amounted to 3.8 mm hryvnyas.
