SPF Sues For Return of Sverdlovsky Machine Building from Druzhkivsky.

The State Property Fund accuses Druzhkivsky Machine Building (DRMZ: BUY) of not fulfilling the $2.7m investment obligation in its privatization agreement. Earlier DRMZ said the fund was late transferring shares into its ownership, which prevented DRMZ from managing the company last year. Olha Pankiv: Since the SPF chairwoman is a Socialist and now part of the new coalition with the Regions party, we expect she will start negotiating a settlement with Druzhkivsky, which is owned by Rinat Akhmetov. We did not take Sverdlovsky into account in our valuation of Druzhkivsky.