The decision of the Constitutional Court on canceling the political reform of 2004 will not impact the activity of Ukrainian stock market players, as it brings little risk of political destabilization and the worsening of the investment climate, according to analysts polled by Interfax-Ukraine.
"On the one hand, the decision brings some risks for the stock market linked to attempts to challenge the lawfulness of decisions made earlier and the actions of the legislative and executive authorities. The decision took effect from September 30, 2010, and the Constitutional Court canceled the previous decision under an admission procedure, not per se, so the said risks of lawfulness are the smallest," said the head of the analytical department of TASK investment group, Andriy Shevchishin.
The head of the analytical department at UFC Capital, Volodymyr Landa, said that a key factor in the assessment of the influence of the news on the stock market would be the level of public perception of the court’s decision.
Landa said that it is likely that stock market players would have a largely positive reaction due to the strengthening of the power structure and the possible activation of some economic processes – privatization in particular.
Landa also said that opposition could try to spread doubt about the lawfulness of the court ruling, bringing forward mainly political, rather than legal arguments.
