Daily monitor

The Ukrainian Parliament has prolonged the restriction on the sale of agricultural until January 1, 2010. The necessary amendments were made to the anti-crisis law that was adopted by the Parliament on December 23, 2008.

Shostka [SHMK UZ, N/R], a Ukrainian dairy producer, is going to consider a private additional share issue of 0.4 mln ordinary shares at a par value of USD 2.4 (UAH 19.21) and the injection of a USD 0.9 mln (UAH 7.4 mln) into its Statutory Fund, according to the Ukrainian News agency. The final decision is to be taken by Shostka’s shareholders at their AGM on February 3, 2009.

At a December 17 EGM, shareholders of Zaporizhstal [ZPST UZ, U/R] voted to recall their July 30 dividends decision for 2007. The 100%, UAH 0.21 (USD 0.025 at USD/UAH 8.2) per share dividends will not be paid. Instead, most of the 2007 profits (UAH 487.1 mln, USD 59.4 mln) will be directed towards modernization. A small portion (UAH 40.6 mln, USD 5.0 mln) will be directed towards equity investments.

The NBU is restricting currency loans for borrowers who don’t have an income set in foreign currency, which mainly applies to consumer and mortgage loans, according to the National Bank order No. 406 issued on December 1 and registered by the Justice Ministry on December 17, which comes into effect on December 28.

The European Bank for Reconstruction and Development (EBRD) has granted USD 75 mln to Raiffeisen Bank Aval [BAVL UZ, U/R] on the conditions of subordinated debt. A fund provision contract was signed on December 22. No information about the interest rate was disclosed.

A local court in the Donetsk Region has declared the Doncement company to be bankrupt. The court has initiated the process for the company’s liquidation.

Ukrainian President Viktor Yuschenko issued a decree, which bans the privatization of four electricity generation companies – Centrenergo [CEEN UZ, BUY], Dniproenergo [DNEN UZ, BUY], Donbasenergo [DOEN UZ, BUY] and Zakhidenergo [ZAEN UZ, BUY] – as well as turbine manufacturer Turboatom [TATM UZ, HOLD] and the Kryvyy Rih Mining and Dressing Plant of Oxidized Ores.

The Ukrproduct group [UKR LN, N/R], an independent Ukrainian dairy producer, has decreased its CapEx by 22% YoY to USD 1.3 mln.

The Ivano-Frankivskcement company [IVFC UZ, N/R] has signed an agreement for the sale of its greenhouse gases quotas to the European Bank for Reconstruction and Development and the European Investment Bank.

Sumy Frunze Machine Building [SMASH UZ, N/R], one of largest European producers of equipment for the oil, gas, and chemical industries, has announced that it expects to increase its production by 40% YoY in 2008, which would put the total at roughly UAH 1.92 bln in value terms. For the same period, the company anticipates that its sales will grow by 51% YoY, from USD 281.4 mln in 2007 to reach USD 425.4 mln in 2008.