Luhansk court rules against Luhanskteplovoz privatization

The Economic Court of Luhansk region ruled that the privatization of a 76% stake in Luhanskteplovoz (LTPL) in March 2007 to Bryansk Heavy Machinery, part of Transmashholding, was illegal, according to local news reports. The court decision was dated September 29. The SPF brought the case forward because previous judicial decisions regarding the ownership of Luhanskteplovoz had not been fulfilled. Yegor Samusenko: The court cases to return the 76% stake in Luhanskteplovoz to state ownership began shortly after Transmashholding privatized it in 2007. Two other bidders for Luhanskteplovoz, which were not allowed to participate in privatization tender, sued to have the auction overturned and Ukraine’s High Economic Court did rule the privatization illegal. However, the Luhanskteplovoz shares were never returned to state ownership. This court decision will definitely be appealed by Transmashholding lawyers. As in 2007, we still do not see the state as having significant chances of winning this judicial battle and believe Transmashholding will retain its ownership of Luhanskteplovoz.