Kyiv Court Rules Luhanskteplovoz Sale Contract Invalid

The Kyiv Economic Court ruled yesterday that the Sale Purchase Agreement (SPA) for a 76% stake in Luhanskteplovoz (LTPL: BUY) is invalid. Inna Perepelytsya: The State Property Fund has already announced that it will appeal the decision. Today the Kyiv Economic Court will hear a second case brought by the Prosecutor General’s office that seeks to take away control of Luhanskteplovoz from Bryansk Heavy Machinery (BRMU RU), part of Russia’s Transmashholding and winner of the March 23 privatization tender. As we said following LTPL’s privatization, we expect the court battles and appeals to play out until after parliamentary elections in September, after which we look for a definitive policy ruling to be handed down by the High Economic Court. Until the higher court weighs in, lower court decisions should be treated with a grain of salt.