The government sent a bill to parliament enabling the sale of Ukrtelekom at an open auction similar to the recent privatisation auction of steel plant Kryvorizhstal. Ukrtelekom's privatization has been postponed numerous times.

A transparent tender is likely to draw significant foreign interest and a high price, but there is a risk that a foreign owner might raise tariffs, angering consumers. In October, the world's largest steel producer, Germany's Mittal Steel, purchased Kryvorizhstal for US$ 4.8 billion, more than double the starting price in the largest and most profitable privatisation auction Ukraine has held.

President Viktor Yushchenko has sought to undo some of the privatisation deals that saw many of Ukraine's industrial assets sold off for low prices during the decade-long rule of former president Kuchma.

Source: Associated Press - WDR/Intelecon Regulatory News