AvtoKrAZ’ custodian goes AWOL

Ukrainian truck producer AvtoKrAZ’ (UX: KRAZ UK, N/R) official custodian bank TK Brok has “disappeared”, daily Kommersant reported today, citing the Ukrainian Securities & Exchange Commission. As a result of the disappearance, AvtoKrAZ cannot complete converting its shares into non-documentary form (so-called dematerialization), which it started February 21, 2011. Trading in AvtoKrAZ shares have been suspended. According to Kommersant, TK Brok recently changed owners and was not responding to attempts to contact them. Vitaly Gorovoy: This situation is atypical for Ukraine and the local SEC. We link AvtoKrAZ’ problems with its custodian to an attempt by majority shareholder, Konstantin Zhevago, a supporter of the opposition whose other assets in Ukraine have come under pressure, to protect his interests in the company.