Russian control of Ukrainian assets has worried many

The State Property Fund has scheduled a tender for the firm on 8 June, and reckons the 92% stake should fetch at least 3.8bn hryvnia (�395m; $694m).

Russia's Severstal and Luxembourg-based Arcelor have joined forces for the bid.

They are reportedly willing to spend $1bn to buy and modernise Kryvorizhstal, which is profitable but indebted.

Name game

The sale is crucial for Ukraine's image in the international business community.

After some initial optimism in the wake of independence, Ukraine has earned a reputation for political instability, sluggish reform and corruption.

Ukraine is currently growing, but the outlook is uncertain

Privatisation, rapid in many other ex-communist states, has been slow, and many sell-offs have been criticised for murky governance.

Ukraine's economy is now growing rapidly - gross domestic product in the first quarter of this 2004 was up 10.8% year on year - and its credit-rating was upgraded late last year.

But troubled politics this year, centring around the apparent intransigence of long-time President Leonid Kuchma, have cast doubts on Ukraine's prospects.

Old habits die hard

The sale to the Severstal-Arcelor team will not be unopposed - not least because there are concerns over Russian dominance of Ukraine's economy.

Russian companies have been among Ukraine's few foreign investors in recent years, and have been particularly acquisitive in the energy sector.

Russia sees Ukraine as a crucial transit market for its oil exports, and a place for processing its raw materials.

This has aroused some concern in Ukraine, where many fear "strategic" industries falling into the wrong hands.