The immediate future of privatisation in the Polish vodka sector is in doubt, thanks to the Polish authorities' insistence to demand high prices for what are faltering businesses.

The polish press is laying blame at the door of Treasury Ministry, whose demanding conditions for privatisation have seen only five of the ten state-owned liquor producers sold off so far.

The ministry seems unwilling to negotiate with enough leeway to satisfy potential investors, who are bidding for businesses whose economic strengths are continuing to wane.

International investors face a double-edged sword if they buy into the Polish market. On one front growing black market imports from Poland's eastern neighbours are hitting volumes of the legitimate distillers. Meanwhile the Polish government exacerbates the problem of falling domestic sales by continuing to raise tax on liquor.

It will take a brave investor to cough up high asking prices when the economic situation is so unclear and the sector itself is undergoing "a crisis", as one Polish journal put it.

Unfortunately, in the short term, there appears to be no softening of approach, with regards to the market or the sale process, from the Treasury, so the whole future of Polish privatisation looks uncertain.