Privatization Of Crimean Soda Plan Questioned.

The Crimean Prosecutor General’s Office has opened a criminal case into violations during the privatization of the Crimean Soda Plant. The basis for the criminal case is the fact that one of the plant’s main activities is salt production, and the current law stipulates that salt producing enterprises are of national importance and cannot be privatized. Under suspicion are executives of the plant, regional representatives of the SPF and officials from the Krasnoperekopsk District Council. The size of damage to the state is estimated at ~USD 9 mln. Concorde Capital: 89.48% of the shares in Crimean Soda Plant belong to Germany’s RSJ Erste Beteiligungs GmbH, which also owns 50%-1 share in Krymskyi Tytan. Numerous attempts by the new government to revise the privatization of companies during the time of Kuchma’s presidency hamper foreign investments into the country. The absence of a clear strategy and procedures along with uncertainties about future re-privatizations, increase current investors? anxiety and keep potential capital watching and waiting for better times.