An attempt by Ukraine's cash-strapped government to raise revenue by privatising a chemical plant flopped yesterday, damaging the country's prospects of pulling out of recession amid bitter political rivalries.

Kiev's privatisation agency cancelled the privatisation of Odessa Portside Plant, saying the offer of $600m (€412m, £377m) from a company representing Igor Kolomoisky, a billionaire, did not reflect fair value for the plant, strategically located on the Black Sea.