Privat Group
The Privat Group, or PrivatBank Group (
The business group was grouped around PrivatBank. On 18 December 2016 this bank was nationalized by the government of Ukraine, taking 100% ownership.[1]
The group is controlled by the
As a
Key businesses of the group (including the PrivatBank itself) are based in Dnipropetrovsk Oblast. The group's founding owners, natives of Dnipro, made their entire careers there.
History
In 1990, the graduates of the Dnipropetrovsk universities,
In 1992,
Having accumulated 1.2 million certificates (2.3% of their total number), the bank began to purchase the shares of the metallurgical enterprises. The first company whose shares Privat received in exchange for certificates was the Dnipropetrovsk hardware plant. With the help of vouchers, Privat entered the capital and established operational control over the Nikopol Ferroalloy Plant, Pokrovsky (Ordzhonikidze) and Marganets GOKs.[3]
Gennady Bogolyubov later admitted that Privat had to negotiate with the governor of the Dnipropetrovsk region Pavlo Lazarenko. So, in 1996, to the Lazarenko’s driver, Leonid Gadyatsky, were rewritten 16.7% of the Privat key company - Sentosa Ltd, 14% of the Solm company, which owned the third part of the Privatbank, and at minimum 1% of the Privat intertrading".[3]
In 1997, Lazarenko, who had already become the prime minister, was dismissed, and Miloslavsky died of a heart attack while on holiday in Austria. The share of Miloslavsky was inherited by his daughter Marianna, who was just finishing the school.[3]
In 1999–2003, Privat's structure bought about 40% of Ukrnafta shares on the open market, the controlling stake remained with the government. Thanks to Kolomoisky’s acquaintance with the brothers Hryhoriy and Ihor Surkis and Viktor Medvedchuk, the company’s chairman was dismissed and replaced by Kolomoisky’s appointee.[3]
In 2000, with the help of
In the late 1990s,
At the end of 2007, Kolomoisky sold to Evraz the controlling stakes of the six metallurgical enterprises. Privat received $1 billion and 9.72% of Evraz shares. However, two years later, Bogolyubov was removed from the board of directors of Evraz.[3]
Assets
Metallurgy
Privat-Intertreyding is controlling the Pokrovsky, Marganetsky, Yuzhny (together with the Russian Smart Group) mining and processing plants. In metallurgy, is controlling the Dnipropetrovsk Metallurgical Plant of Comintern, Dnipropetrovsk Metallurgical Plant of Petrovsky, Nikopol Ferroalloy Plant, Stakhanov Ferroalloy Plant, Zaporizhzhia Ferroalloy Plant and Russian Alapaevsk Metallurgical Plant.[4]
At the end of 2007, Privat completed the sale of its metallurgical assets to the Russian Evraz group: the Sukhaya Balka mining and processing plant, the Dnipropetrovsk Metallurgical Plant of Petrovsky and three coke chemicals (Dneprodzerzhinsky Coke and Chemical Plant, Baglecox, Dneprokoks).[4]
Fuel industry
Kolomoisky is a major shareholder of Ukrnafta (42% of shares in 2008).[5][6] At the end of December 2007, Privat acquired 12.62% of the shares of the British oil and gas company JKX Oil & Gas, about 80% of oil and gas assets are located in Ukraine.[4]
Structure
This section's factual accuracy may be compromised due to out-of-date information. (January 2013) |
The businesses of Privat Group are not formally included in a corporation, and its top managers sometimes state that there is no such group at all.[7] However, either PrivatBank or "Privat-Intertrading" company indirectly own all companies regarded as parts of the group. Typically, industrial companies are controlled through a complicated chain of offshore companies. Despite this, the Ukrainian public has a clear understanding of what exactly belongs to the group. To describe such relations, the media use the wording “company X is controlled by the Privat Group" or "the business of the X company is being organized by the PrivatBank". The group never denies such statements.
Steel industry
Various steel companies form the core of the Privat Group, presenting a full manufacturing chain of metallurgy. This oldest and most important part of the group is mostly located in and around Dnipro (location specified in parenthesises below).
Ore mining and processing companies
- Marhanets Mining&Processing Kombinat and Ordzhonikidze Mining&Processing Kombinat extract and enrich ferroalloy ores, controlling the domestic market of this raw material (cities of Marhanets and Pokrov, respectively)
- “Suha Balka” JSC extracts iron ore (Kryvyi Rih)
Ferroalloy mills
Apart from its ferroalloy-ore assets, Privat Group has stakes in all three of Ukraine's ferroalloy mills and controls two of them.
- formerly Nikopol Ferroalloys Plant, the world's second ferroalloy manufacturer (co-owned and fiercely fought over with the Interpipe Group) (Nikopol), the privatisation was declared illegal in 2006.
- Stakhanov Ferroalloy Plant (Kadiivka, Luhansk Oblast of Ukraine)
- Zaporizhzhia Ferroalloy Plant (Zaporizhzhia)
- Alapayevsk Metallurgy Plant (Alapayevsk, Russia)
- Ferroalloys company in Romania (mentioned by the group co-owner but undisclosed as yet)
- Highlanders Alloys LLC (New Haven, United States)
Steel mills
- Dnipropetrovsk Metallurgy Kombinat named after Petrovskyi (Dnipro)
Oil industry
According to the media, Privat Group owns significant shares in
The group also recently acquired control over Chornomorsk Fuel Terminal Company, operating the oil & petrol terminal in the Black Sea port of Chornomorsk.
Chemical industry
The group owns Kamianske based chemical plant "DniproAzot" with 1000000 tons per year of ammonia capacity and 750000 tons per year of urea capacity.
Food industry
Privat Group owns the Dnipro-based “
The group may also control sugar beet processing plants throughout Ukraine.
Energy industry
In 2005, Privat Group bought controlling shares in five companies that fully control electricity distribution in Ivano-Frankivsk, Poltava, Sumy, Chernihiv and Lviv Oblasts. The names of these companies are the name of the respective oblast with the -oblenergo ending, e.g. “Poltavaoblenergo”.
Banking
Media
Privat Group officially controls the Privat-TV regional
Sports
Privat Group indirectly owns
Real estate
They own 2/3rd of Optima Ventures, a Miami-based real estate investment firm led by
Relations and controversies
This section needs to be updated.(January 2013) |
This section needs expansion. You can help by adding to it. (January 2013) |
Privat Group is involved in a permanent and fierce business conflict with Ukrainian oligarch
Before the Orange Revolution, Privat Group had been widely regarded as relatively uninvolved in politics, but loyal to the Leonid Kuchma regime. After the government change, the group's owners, according to media, became close allies of Yulia Tymoshenko (although she publicly denies this). Analysts agree that some of Tymoshenko's decisions as the Prime Minister of Ukraine supported Privat side in conflicts.
Some sources state that Privat Group provided significant financial support for
See also
References
- Inline
- ^ (19 December 2015)
- ^ a b c Colossi With Feet of Clay, The Ukrainian Week (22 February 2013)
- ^ a b c d e f g h i j Елена Шкарпова (2012-09-03). "Неизвестные факты из жизни Игоря Коломойского". Forbes. Retrieved 2013-01-04.
- ^ a b c d "Приват — финансово-промышленная группа компаний". UBR. Archived from the original on 2013-01-17. Retrieved 2013-01-04.
- ^ "Игорь Коломойский: "Если президентом станет Тимошенко, я себя вижу в эмиграции"..." Украинская правда. 2008-03-28. Retrieved 2013-01-04.
- ^ "Игорь Коломойский: Янукович мне лично предлагал войти в список Партии регионов". Украинская правда. 2008-03-31. Retrieved 2013-01-04.
- ^ "The Privat group considers itself non-existing at all. The ghost register for the semi-gost group is a normal situation."Спроба №7. Mirror Weekly (in Ukrainian). Retrieved 2023-07-08. "Попытка №7". Mirror Weekly (in Russian). Retrieved 2023-07-08.
- UNIAN(14 September 2017)
- ^ The Cleveland Plain Dealer.
- ^ a b Blumberg Capital Partners: "Optima International Purchases More Cleveland Property" 2008]
- ^ McFee, Michelle Jarboe (May 16, 2008). "One Cleveland Center sold for $86 million". The Plain Dealer. cleveland.com - Cleveland Live LLC. Retrieved 4 December 2012.
- ^ Crain's Cleveland Business: "Huntington Building in downtown Cleveland sold to Florida's Optima International" By STAN BULLARD June 23, 2010
- ^ "Инцидент со многими неизвестными. Иван КРАСИКОВ | Право | Власть". Archived from the original on 2010-10-12. Retrieved 2010-10-22.
- General
- "Privat Group's dossier entry" (in Russian). proUA.com. Archived from the original on May 15, 2006. Retrieved April 5, 2006.
- "Igor Kolomoisky: "I told Pinchuk, 'Life is a supermarket. You can take whatever you like, but the cash desk is at the end'"" (in Russian). Zerkalo Nedeli. August 20–26, 2005.
- (in Russian and Ukrainian)"PRIVATization of oil assets". Zerkalo Nedeli. July 24–30, 2004. in Ukrainian, in Russian