The district administrative court of Kyiv issued a ruling to ban the State Property Fund of Ukraine (SPF) from carrying out the privatization of 100% of shares in private joint-stock company President Hotel (Kyiv), and the fund is drawing up a counterclaim against the ruling.

The fund said that it received the notification from the court on November 25 by phone.

"The situation with President Hotel is evidence that around each state-owned facility there is a conflict of interests and our courts play into the hands of the interested persons hindering the privatization," the fund said, citing its head Ihor Bilous.

According to the report, SPF representatives were urgently called to a court hearing by phone, which was scheduled for 16:45 on November 24. It was found out that the court is hearing the claim against PrJSC President Hotel and the SPF filed by Kvadr construction company LLC (Kyiv, a minority shareholders in the company is Vorys Kaufman) as the leaser of the President Hotel.

Bilous said that the availability of the leaser does not hinder the sale of shares in the state-owned company, which is clearly outlined in Ukrainian law.

"The leasing agreement does not lose its force, and nothing hinders the leader to take part in the open tender on the conditions of fair competition," he said.

Earlier on November 25, the SPF published an announcement that the auction to sell 100% of shares or 94.337 million of shares in PrJSC President Hotel will be held on December 29, 2015. The starting price is UAH 330.112 million. Persons affiliated with Russia cannot take part in the tender.

The fund in order No. 857 of June 15, 2015 included President Hotel in the list of 30 facilities of Group E, state-owned shares in which are to be privatized in 2015.