Daily monitor

Sumy Frunze Machine Building [SMASH UZ, N/R] – one of largest European producers of equipment for the oil, gas, and chemical industries – has secured a deal with the Russian gas monopoly ‘Gazprom’, whereby it will supply six turbo freezer aggregates.

According to Yaroslav Kolesnik, the Chairman of the Board for Forum Bank [FORM UZ, U/R], the bank intends to increase its statutory capital by UAH 0.5-1.1 bln in the current year, as well as attracting a subordinated loan from EBRD for up to USD 100 mln.

According to Acting Finance Minister Ihor Umanskiy, the seven banks to be recapitalized by the Ukrainian Government are: Ukrprombank, Nadra Bank, Imex Bank, Ukrgazbank, Finance and Credit Bank, Rodovid Bank, and Kyiv Bank.

The Enakievo ISW group, which includes OJSC Enakievo Iron & Steel Works [ENMZ UZ, U/R], is making progress with the construction of Blast Furnace No. 3, according to a Metinvest Holding press release.

According to Metal-Courier, on April 14, Zaporozhkoks [ZACO UZ, N/R] shut down coke battery No. 1. The design capacity of CB No. 1 was 910 thsd tpa, actual productive capacity was 545 thsd tpa. Zaporozhkoks plans to eventually erect a brand new CB No. 1-bis with 860 thsd tpa capacity.

The Svarog Asset Management company, which owns 14.94% of shares in the Kharkiv-based OJSC Turboatom [TATM UZ, HOLD] – the largest turbine manufacturer in Ukraine – is challenging the legitimacy of decisions adopted at the recent shareholders meeting on April 13, including the decision to pay out UAH 50.884 mln in dividends on the company’s 2008 profits.

Ukraine’s National Energy Regulatory Commission (NERC) has introduced a 3.1X increase in power tariffs for residential users that consume over 0.6 MWh power per month, from the current UAH 244 per MWh to UAH 755 per MWh.

Ukraine’s Cabinet of Ministers has established a cap on trade markups, setting the maximum that may be charged on wholesale prices at 12% and 25% of retail prices for both medicine and other medical goods.

Raiffeisen Bank Aval [BAVL UZ, U/R] announced that it has repaid the final USD 100 mln tranche of an overall USD 500 mln syndicated loan, which was attracted in April 2007 for a period of two years at LIBOR +1.2%.

In Ukraine, official statistics reported a YoY decrease in consumer spending and industrial production volumes in January-March 2009. Retail trade lost 11.5% YoY in 3M09 and totalled UAH 96 bln.