Luhanskteplovoz Privatization Becomes Increasingly Politically Charged

At a press conference last week, Prime Minister Viktor Yanukovich spoke out in favor of the privatization of Luhanskteplovoz (LTPL: BUY), saying that reversal of the tender would discredit private property rights in the country. A day earlier, the Presidential Secretariat said it supported overturning the privatization results, which it claimed was evidence of a deep crisis in the government’s privatization efforts and was capable of damaging the country’s investment climate. The Yulia Tymoshenko Bloc also backed the Presidential Secretariat’s line. Inna Perepelytsya: As we expected, the issue of Luhanskteplovoz’s privatization is playing into pre-election platforms as each political party is weighing in with their two cents. Though the Prime Minister’s support gives more credence to our belief that the privatization will stand, recent statements by most major political parties reinforce the supposition that a definitive ruling from a high economic court will not be available until fall.