| Ukraine’s President Viktor Yushchenko has signed a bill suspending the law on the privatisation of Ukrtelecom until a new privatisation program is adopted.
The law on the specifics of the Ukrtelecom privatisation, which took effect on July 13, 2000, bans the restructuring of the company for a different function. The law also stipulates that the integrity of Ukrtelecom's assets, including its communications equipment, must remain intact before and during privatisation.
In addition, the law states that no assets can be privatised for free, that any possible favorable conditions be created in order to attract investments, that the public be fully informed about the specific assets to be privatised and about the terms and conditions of the privatisation, and that the state regulate and control this process.
The state owns 92.86% of Ukrtelecom. Just over 7% of Urktelecom’s shares were sold to its personnel. Under the new law, the state would retain 50% plus one share after privatisation.
A tender for an Ukrtelecom stake was originally scheduled for August 2004. However, then president Leonid Kuchma instructed the government and the State Property Fund to suspend privatisation to prevent "pre-election gambling."
Source: Interfax - WDR/Intelecon Regulatory News
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