Daily monitor

Ukrainian pharmaceutical producers Galychpharm [GFARM UZ, N/R] and Kyiv Medpreparat [KMED UZ, N/R] are planning to implement GMP standards at their manufacturing facilities. Galychpharm is going to implement the GMP standard with its ampule injector unit in June-July this year. The equipment will come in the form of a second unit installed at Galychpharm. The company is planning to move all ampule products to the new units and reject its old way of vacuum sealing. The total output capacity of the 2 units is 20 mln packs annually.

The privatization of oblenergos Poltavaoblenergo [POON], Lvivoblenergo [LVON], Prykarpattyaoblenergo [PREN], Chernigivoblenergo [CHEON], Sumyoblenergo [SOEN] and Odesaoblenergo [ODEN] has officially been halted by State Property Fund (SPF) head Andriy Portnov. The decision to stop proceedings was supported by the cabinet and Prime Minister Yulia Tymoshenko.

FitchRatings changed its credit rating outlook on Ukraine from positive to stable and kept the country’s sovereign rating at BB-. The agency noted the threats of inflation and the widening current account deficit on the country’s macroeconomic performance as reasons for the downgrade. Fitch considers the measures adopted by the Ukrainian government in order to slowdown the price growth insufficient and named inflation as the key factor for the volatility in the Ukrainian economy in the future.

The INNEX stock exchange, which is to hold a second auction on the privatization of the oblenergos by organizing the sale of a 26.98% stake in Lvivoblenergo [LVON], removed an announcement from its website on the cancellation of the auction in question. The 25% stake in LVON will be sold as one lot, with a starting price of USD 110mln or USD 2.09 per share, the average price for the stock during the last six months.

The privatization of a 25% stake in electricity distribution company Poltavaoblenergo [POON] was prohibited by a Ukrainian regional court May 7. The Ukrainian Interbank Currency Exchange (UICE), which was to hold the auction of 25% of POON May 14, had already registered three potential buyers that applied to participate in the auction.

VS Energy, the main shareholder in electricity distribution company Odesaoblenergo [ODEN], has announced its plans to buy four gas turbines worth USD 225 mln from Siemens, to be installed on the newly built power station in the portside city of Ismail in the Odessa oblast.

Kovelmoloko [KMOL UZ, U/R] has attracted a one-year, USD 5.5 mln loan with an interest rate of 20% from UkrExim Bank, according to a contract signed May 7. KMOL is one of the top dairy producers in Ukraine and is a main production asset of the Western Milk group. The loan will be used to fulfill working capital.

On May 01, Donetsk Metal Rolling Plant [DMPZ UZ, HOLD] has launched its main Mill 300 after 35 days repairs. According to Metal Courier, in April the company halted production completely (as we reported was expected earlier). In May, 12 thsd metric tons is to be produced.

Donetsk Metal Rolling Plant [DMPZ UZ, HOLD] released the 2007 financials.

Starting July 1, the gas price for industrial enterprises in Ukraine will be raised to USD 292 per thsd cbm from the current USD 283. This is the third month in a row the government has increased the gas price for the industrials. Since Jan. 1, 2008, the price of gas will have appreciated USD 39 per thsd cbm for the enterprises.