High Economic Court rules Zaporizhya Aluminum does not need to be returned to state

Ukraine’s High Economic Court overturned previous decisions by the Kyiv Economic Court and Kyiv Economic Appellate Court (the most recent of which was in May 2011) to return a controlling stake in Zaporizhya Aluminum (UX: ZALK UK, N/R) to the state, Interfax reported yesterday. A lawsuit to return the 68.01% stake held by Russia’s Rusal and privatized in 2001 was filed by Ukraine’s General Prosecutor in 2008 due to a failure to meet investment obligations. In its ruling, the High Economic Court forwarded the case back to the Kyiv Economic Court for further investigation. Kommersant reported this morning that the Verkhovna Rada Special Commission on Privatization was working with the Cabinet of Ministers to develop a program to support Ukraine’s aluminum industry including preferential electricity tariffs, which Zaporizhya Aluminum management has long said is necessary for the viability of its business.