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. Last Updated: 07/27/2016

Agency to Start Oil Privatization

KIEV -- Ukraine's state privatization agency, the State Property Fund, will start privatizing all six Ukrainian oil refineries by the end of 1998, deputy fund head Alexander Bondar said Tuesday.

Last week the fund announced sales in March of a 40 percent stake in the Lisichansky Naftopererobny Zavod and stakes of 30 percent and 31 percent in the Kherson oil refinery, to the buyer offering the best investment.

"I can say the rest of the refineries will go to tender this year, depending on when they are readied for privatization," Bondar said at a news conference.

He said the fund was required to raise about 1 billion hryvnas (approximately $515.5 million) in budget revenues this year.

Ukraine's refineries -- Kremenchuk, Lisichansk, Nadvirnyansky, Drohobych, Odessa and Kherson -- are capable of refining 60 million tons of crude oil per year.

Annual production in 1997 was 12.84 million tons against 13.47 million tons in 1996, reflecting sharp drops in Russian crude oil supplies.