Ukraine’s Azmol Headed for Sale


The Ukrainian government said recently that it is preparing to sell a controlling share in Azmol, one of the largest lubricant suppliers in Eastern Europe.

Ownership of Azmol was transferred in March from national oil company Naftogaz Ukrainy to the State Property Fund, which is charged with privatizing certain government-owned enterprises. The agency told Lube Report that it is developing a process by which it will sell off at least part of the company. Press reports say the fund plans to sell at least a 70 percent stake in the company and that the bidding process could begin as early as this month.

Property Fund officials have been quoted as saying they expect strong interest in the offering, and several news organizations have reported that oil producer UkrNafta already has announced its plan to bid.

Russian oil company LukOil previously negotiated with Ukraine seeking to buy Azmol, but those talks broke off last year.

Based in Berdiansk, Ukraine, Azmol was formed in 1994 and is one of the two largest lubricant producers in Ukraine. Lube demand in Ukraine is 440,000 metric tons per year, according to Fuchs Petrolub AG, making it the second-largest lube market in Eastern Europe and the former Soviet Union, behind only Russia.

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