Privatization Of Ukrtelecom: To Be Or Not?

President Yushchenko said yesterday that Ukraine must privatize Ukrtelecom (UTEL: HOLD) as soon as possible. In July, 2005, the Ukrainian government adopted a program for UTEL’s privatization, but the Rada has not yet adopted a law which will allow the process to start. Prime Minister Yuriy Yekhanurov has said he doubts the current Parliament will be able to adopt the needed resolution. Concorde Capital: According to Yekhanurov, UTEL’s privatization will only be possible after the March parliamentary elections. His reasoning makes sense, as the current Parliament may fail to adopt the law on UTEL’s privatization. But, on the other hand, the decision whether or not to privatize UTEL is crucial for filling the 2006 budget. This gives the UTEL privatization a bit better chance of happening than Yekhanurov claims. Although official plans are unclear, we expect the privatization to take place in the summer of 2006.