KIEV -- Legislators in Ukraine's parliament lifted a four-month-old ban on privatization Wednesday, but derailed government plans to speed reform by approving a list of several thousand enterprises to remain in state hands.


The vote, passing 207 to 90 in favor with 19 abstentions, was welcomed by its supporters in the former Soviet republic's reform-shy parliament as a victory for President Leonid Kuchma, who unveiled a radical program of economic reforms last month.


"It's not perfect but it finally opens the door to real privatization," reformist legislator Sergei Sobolev said.


Privatization has proceeded at a sluggish pace in Ukraine since the state gained independence three years ago. The slow pace of progress was brought to a virtual standstill last July when parliament imposed a moratorium on privatization.


As little as 5 percent of Ukraine's economy is in private hands but Wednesday's vote allows for the privatization of up to 77,000 medium and large-sized enterprises.