Chairman of the board of Renova Viktor Vekselberg (left) and the president of Evrazholding company Alexander Abramov (right)
Photo: Dmitry Azarov
| Other Photos |
 |
|
 |
Renova’s Plans Renewed
The Kyiv Court of Appeal upheld yesterday a suit of the Ukrainian Prosecutor General’s and invalidated the privatization of a controlling stake in the Nikopolsky Ferroalloys Plant, which means Renova’s owner Viktor Vekselberg and Evrazholding’s president Alexander Abramov won't buy stocks of the plant from Viktor Pinchyuk, the former Ukrainian president’s son-in-law. The court ruled to return a controlling package of the plant's stocks owned by Interpipe to the Ukrainian State Property Fund. A repeat auction is most likely to be announced in the nearest future, where the Russian businessmen will have to contend with other bidder on a common basis.
Mr. Vekselberg and Mr. Abramov agreed with Viktor Pinchyuk on the sale of 73 percent controlling interest to their joint enterprise in June. Afterwards, Prime Minister Timoshenko warned Viktor Vekselberg against the purchase saying the stocks would be returned to the state property. The Ukrainian Prosecutor General’s Office filed the suit to the Kyiv Economic Court in May which was dismissed but the Kyiv Court of Appeal nevertheless seized the stake in question July 11. Alexander Abramov turned to President Yushchenko with a proposal to conclude an amicable agreement on the dispute of the legitimacy of the plant’s privatization, which the president turned down.
The Kyiv Court of Appeal invalidated yesterday the privatization of 50 percent plus one share of the plant and ruled it to be returned to the state. A repeat auction for the stake is likely to be held within the next six months as a repeat auction for another Ukrainian giant Krivorozhstal was scheduled for mid-October, five months after the similar court’s ruling. Lawyers of Pridnestrovye consortium [joint company of Vekselberg and Abramov] say the will appeal the decision atthe Ukrainian Supreme Economic Court. Privat Group, the main rival of Interpipe at the previous 2003 auction, which is generally believed to bankroll the Ukrainian “orange revolution” in exchange for a repeat privatization of the ferroalloys plant, is now preparing for a repeat auction, its representatives say off the record.
www.kommersant.com
All the Article in Russian as of July 26, 2005
|
|
|
