Daily monitor

Motor Sich [MSICH UZ, U/R] – one of the largest manufacturers of airplane and helicopter engines in the world – has recently seen some progress with two specific international projects. The first involves MSICH as the serial producer of AI-450 engines for a project being overseen by Russia’s Kamov Plant, involving the modification of the Kamov Ka-226 light multi-role helicopter to comply with the requirements of the Indian armed forces. According to Interfax-AVN, the aircraft is to be fitted with a new MSICH-produced engine, which will be the distinctive feature of the Indian modification.

The Ministry of Regional Development and Construction is planning to implement mandatory protection for cement producers from gas and electricity price increases. This mandatory protection is made in order to protect the real estate market from an increase in the prices of construction materials.

On November 25, 215.3 thsd mt of crude oil were sold at Resources Auction 123, 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 1,719 per mt, or USD 28.9 per bbl (excluding VAT, at USD/UAH 6.75).

Ukrnafta [UNAF UZ, BUY] plans to sell 422.4 thsd mt of oil and 19.5 thsd mt of gas condensate at the Ukrainian Energy resources Auction 123 on November 25.

Ukrainian power generating companies owe UAH 426 mln (USD 69 mln) for coal that has already been supplied to these companies, Deputy Coal Minister of Ukraine Yuriy Yaschenko said yesterday.

Ukraine faces the possibility of being left with17 mln mt of grain in July 2009.

As of November 19, Kryukiv Railcar [KVBZ UZ, BUY] will cease the supply of passenger train coaches to "Ukrzaliznytsya”, Ukraine’s State Administration for Railway Transportation, due to its outstanding debt of UAH 200 mln. Vladimir Prikhodko, the Chairman of the Supervisory Board of Kryukiv Railcar made this announcement was made at the end of last week.

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 19.8% increase in production (to UAH 387.561 mln) YoY for the period January-October 2008. These figures were released by the plant’s owner Osnova-Papir.

The Kyiv Cardboard Paper Mill [KIKP UZ, N/R] in Obukhiv (Kyiv Region) – Ukraine`s leading pulp and paper producer – has released results for the first ten months of 2008. From January to October 2008, the company increased production by 38% YoY (to UAH 930.08 mln), according to Interfax-Ukraine.

Starting November 27, 2008, the National Bank of Ukraine (NBU) will establish the official USD/UAH exchange rate based on the previous day’s Interbank market rates. Prior to this decision, the NBU has been establishing the official USD/UAH exchange rate based on the Interbank foreign exchange market outcomes, NBU interventions and exchange rate changes on international markets.