Supreme Court Refused to Hear Case of Luhanskteplovoz Privatization

The Supreme Court of Ukraine refused to hear the State Property Fund’s appeal of lower court rulings that the case concerning the privatization of Luhanskteplovoz (LPTL: U/R) to Bryansk Heavy Machinery, owned by Russia’s Transmashholding, was illegal. Inna Perepelytsya: In the short-term, uncertainty regarding reprivatisation and court battles might be reflected in stock volatility. We do not believe this is the final chapter in the story; there still remain plenty of legal ways to keep Transmashholding in control of Luhanskteplovoz in the mid-term. We continue to see Transmashholding as the most efficient owner among the candidates that have stated interest in Luhanskteplovoz. Under the privatization tender, Transmashholding is obliged to invest USD 60 mln in the company over 2007-2009, and has already purchased new equipment and developed new types of locomotives for the company to produce.