Motor Sich(MSICH: BUY), a major aircraft engine manufacturer, announced that it expects in 2Q07 to hold an IPO for 3-5% of the company’s statutory fund. The company recently stopped negotiations with Russian Oboronprom, which wanted to acquire a stake in MSICH outright or to exchange shares with a new Russian aircraft engine holding, which is currently being created. Olha Pankiv: We expect negotiations to be revived after the IPO. This cooperation would be beneficial for both parties: MSICH depends on Russia as an export destination, and for Russia it would be too costly to begin its own serial production of engines for Mil and Kamov helicopters at its Klimov plant, which it threatened to do earlier.