Ukrainian space equipment producers looks for government to relinquish holding to bring investors in

Published: 10/11/1999

Khartron, the Ukrainian producer of automatic control systems for spacecraft based in Kharkov, has said that it will seek Russian investors to invest in the plant, on the basis that the state abandons plans to retain 50% of the company's shares for three years. In June, Kharton had virtually closed a deal to sell 24.78% stakes to the Russian space agency and Russia's Khrunichev state space centre respectively, but the buyers backed off when, on June 7th, the Ukrainian Government issued a resolution securing state ownership of 50% plus one share in the plant for the next three years. Each of the Russian investors had promised to invest Hr 3.5m ($790,000) in the company. When in July, the Ukrainian State Property Fund announced a tender to sell 24.56% of Khartron. Management refused to actively search for buyers, considering the stake too small to interest its preferred Russian partners. The President of Khartron, Yakov Eisenberg now reports however, that Deputy Prime Minister, Anatoly Kinakh, has ordered the drafting a resolution lowering the state's stake in the company from 50% to 25%. Khartron is one of the CIS's largest manufacturers of control systems for space equipment and is the only maker of automatic spacecraft docking systems. In 1998, Khartron received 48% of its orders from Russia. Eisenberg claims that there is no domestic market for Khartron's products.

Article ID: 965