Ukrainian govt plans to merge VostGOK with Energoatom

MOSCOW. March 5 (Interfax) - The Ukrainian government has approved a bill on the state-owned company VostGOK's corporatization and submitted it to the parliament, Ukrainian media reported citing First Deputy Prime Minister and Energy Minister Denis Shmygal.

"In the process of its corporatization, VostGOK will be transformed into a joint-stock company, with 100% of its stock owned by the state. A moratorium shall also be imposed on its bankruptcy and the enforcement of decisions with respect to its assets," the media cited Shmygal's post on his social media account.

The next step will be VostGOK's merger with the national power plant operator Energoatom as part of a vertically integrated holding company controlling the entire cycle, from mining and producing uranium concentrate to generating electricity, Shmygal said.

VostGOK is "a strategic enterprise, whose functioning is essential for the future of our nuclear power industry. Its preservation, the drawing of investment, and its modernization will make the state energy-sustainable and strong," he said.

VostGOK is among the world's top ten uranium producers and the only enterprise in Ukraine producing uranium ore and uranium oxide concentrate. It also provides up to 40% of uranium needed to manufacture fuel assemblies for Ukrainian nuclear power plants.