Ministry of Agrarian Policy to transfer Bread of Ukraine into its submission

13.06.2006 10:39 "Agro Perspectiva" (Kyiv) — Ministry of Agrarian Policy proposes to bring State-owned Joint Stock Company Bread of Ukraine into Ministry subordination, reported Ukrainian News referring to Natalia Pavliuk, Deputy Minister of Agrarian Policy.

As to Pavliuk, earlier elaborated plane of Bread of Ukraine reorganization has been adjourned and now it goes about this Company being transferred into Ministry of Agrarian Policy submission.

«On Prime Minister May 13 meeting Ministry of Agrarian Policy was charged with protocol commission to prepare documents necessary for Bread of Ukraine transference into Ministry of Agrarian Policy submission,» said Pavliuk.

As earlier reported, Oleksandr Baranivskiy, Acting Minister of Agrarian Policy, had proposed to Cabinet to transfer part of Bread of Ukraine companies into subordination of State-owned Agrarian Fund (which is presently subordinated to Ministry of Agrarian Policy), with rest of Bread of Ukraine companies to be privatized.

End 2005 Baranivskiy strongly opposed to Bread of Ukraine urgent privatization.

Bread of Ukraine had proposed to Cabinet to permit selling 49% its shares.

Company Bread of Ukraine was founded in 1996; presently Company incorporates 81 grain acceptance/storage system companies.

Bread of Ukraine owns 2 port elevators (Odesskiy and Myckolayivskiy). Odesskiy port elevator grain storage capacity totals 100,000 MT (annual transshipment capacity — 1.5 mn MT); Myckolayivskiy port elevator grain storage capacity totals 69,000 MT (annual transshipment — 600,000 MT);

Since end 1998 Company suffered financial problems due to having had got in big debts with petrol/gas companies while acting as agrarians fuel/fertilizers shipments intermediary. As to various estimations, Bread of Ukraine debts are ranging within UAH200 mn-UAH1.4 milliard.

Company had ended 2004 at UAH66 mn loss.

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