OREANDA-NEWS. January 21, 2011. The Prosecutor-General's Office (PGO) questions the privatization of Luhanskteplovoz by Transmashholding (Russia), according to the news broken by the Interfax-Ukraine news agency on Dec 19.

Millennium Capital considers the news as marginally NEGATIVE for LTPL, as it delays the signing of the amicable agreement between the State Property Found (SPF) of Ukraine and Transmasholding on privatization of Luhanskteplovoz. The news adversely affects the company, offsetting the recent positive news about the plant’s increased output (diesel locomotive output up by 2.1x in 2010). Nevertheless, we expect the situation to be resolved in the short term, taking into account that the Government of Ukraine has settled recently the issues with Transmashholding, as well as the firm intention of the Russian investor to further advocate its interests in the court.