KIEV, July 23 – The State Property Fund has proposed to cancel an agreement on the purchase of an 86.98% stake in Luhansk Airlines by East-Ukrainian Metallurgical Company Ltd.

The fund said that the company does not provide timely payments to the local budget. As of May 30, the company's debt on individuals' income tax was UAH54,060.

The fund also said that the investor did not pay the bills payable of the airline, but paid UAH95,100 from September 2007 to April 2008 using the funds of the carrier, which is not in line with the conditions of the agreement.