The Government Scolds SPF For Failing To Meet Privatization Goals.

The government has ordered the State Property Fund (SPF) to drastically increase the amount of revenues to the 2006 budget with privatizations before the end of the year. As of October 1, the budget has only received $64m from privatizations or 15% of the planned revenues for 2006.  Head of the SPF, Valentina Semenyuk, said she hoped to increase privatization revenues with the sale of Luhanskteplovoz (LTPL: HOLD) and Kryvy Rig Oxidized Iron Ore (KGOKOR). Alexander Viktorov: Semenuyk and Co. have done a pitiful job at pushing through privatizations, don’t forget she did everything in her power to stop Kryvy Rig Steel’s (KSTL: BUY) reprivatization, and only recently have shown any interest in selling state assets.  The series of privatizations that were supposed to take place this fall stumbled out of the gate with the canceling of the LTPL tender and it is doubtful Semenyuk will be able to pull off the privatizations she mentioned, much less meet the government’s $420m privatization revenue plan before 2007.  It looks as if the Cabinet is questioning the reliability of privatization revenues and will likely fill the gap with increased borrowing.