Privat?s Assets Affected By A Massive Crackdown On Tax Evasion

Concorde Capital: A wave of investigations swept across Ukrainian business groups last week. Specifically, local Prosecutor offices inquired into the activities of Kryvyi Rig Iron Ore (Privat), and Central GOK (System Capital Management). These groups are known for their extensive use of tax ?optimization? schemes and transfer pricing. However, we believe Privat will get off lightly, due to its alleged involvement in funding the Orange Revolution. The group possesses unparalleled expertise in court cases as well. Some executives of Ordzhonikidze GOK and Kryvyi Rig Iron Ore may be fired and taxes/fines due are likely to be paid to the budget within a one year time frame.