KIEV, Ukraine, March 22 (UPI) -- It might be necessary to sell part of Ukraine's national utility company Naftogaz on the foreign market, the Ukrainian president said.
Ukrainian President Viktor Yanukovych said Kiev might need to raise cash in foreign and domestic markets to ensure the stability of the national energy company.
"If it is necessary to sell a portion of the company and sell on international exchanges a certain portion of the shares, then this step should be taken, but we cannot just hold talks without any concrete steps for the recovery of the company," he was quoted by the National News Agency of Ukraine as saying. "It is necessary to attract an effective investor."
A financial meltdown in Ukraine at the onset of the worldwide recession in 2008 was compounded by payment issues between Naftogaz and Russian gas company Gazprom.
Gazprom has pressed for a merger with Naftogaz at least since 2009 when Kiev's reputation as a transit nation was tarnished by disagreements with Moscow over natural gas contracts and debt. Russia sends 80 percent of its gas to Europe through Soviet-era pipelines in Ukraine.
Ukrainian lawmakers last year rejected the merger with Gazprom, fearing it would put Kiev too close to its former patrons in the Kremlin.
Privatization of Naftogaz is illegal under Ukrainian law.
