Daily monitor

The National Bank of Ukraine (NBU) has increased the reserve requirements for foreign currency deposits as of January,5, with this change being outlined in resolution #442. The norm of the reserve has increased from 3% to 4% for deposits with a fixed period and from 4% to 7% for callable deposits. The norm of the reserve for UAH deposits was not changed.

The Bogdan Corporation has announced that it is, so far, not ruling out the possibility that the company may have to lay off 2,000 of the 10,000 personnel presently employed at its enterprises over the period of January-March 2009.

The Zaporizhya-based Motor Sich [MSICH UZ, BUY] company – the largest producer of aviation jets and gas-turbine units in the CIS – has announced its intention to deliver helicopter engines worth USD 12-13 mln to Canada. This announcement was made by Vyacheslav Bohuslaev, the Chairman of MSICH’s Board of Directors in an interview with the “Delo” newspaper.

The Ukrainian Parliament has endorsed legislation on increasing the excise tax on beer by a total of 58.1% in 2009. The increase will be implemented in two steps. Beginning January 1, 2009, the excise tax will be increased to USD 0.05 (UAH 0.39) and then subsequently, in July 2009, will finally be raised to USD 0.065 (UAH 0.49).

The Ukrainian Parliament has passed a bill that temporarily imposes an additional 13% tariff on all imports except critical imports (to be defined by the government). The bill was supported by 269 MPs from the governing coalition and Communist Party.

On December 23, 197.4 thsd mt of crude oil were sold at Resources Auction 124, which took place on the floor of the Ukrainian Interbank Currency Exchange. According to our source at the UICE, the average price of oil was UAH 1,450 per mt, or USD 20.8 per bbl (excluding VAT, at USD/UAH 7.94).

The Kyiv Cardboard Paper Mill [KIKP UZ, N/R] in Obukhiv (Kyiv Region) – a leading Ukrainian pulp and paper producer – has released results for the first eleven months of 2008. From January to November 2008, the company increased production by 36.7% YoY (to UAH 1.029 bln), according to Interfax-Ukraine.

The Luhansk-based Rubizhnoye Cardboard and Packaging Mill one of Ukraine's largest cardboard packaging producers – cut corrugated cardboard production in January-November 2008 cut production by 20.2% compared to the same period in 2007 (to 167.135 mln sq.m.).

The Zhydachiv Pulp and Paper Plant [ZCPK UZ, N/R] – the monopoly producer of newsprint in Ukraine, and located in the Lviv Region – recorded a 16.7% increase in production (to UAH 420.294 mln) YoY for the period January-November 2008. These figures were released by the plant’s owner Osnova-Papir.

The National Electricity Regulatory Commission of Ukraine has set key parameters for electricity distribution companies in 2009.