Daily monitor

AvtoKrAZ [KRAZ UZ, U/R], Ukrainian heavy truck producer, reported about 215 units being produced in 1Q10, showing more than eightfold growth YoY. In the sales structure , the far-abroad countries (70%) and CIS countries (except Ukraine, 18.6%) dominate, while domestic market respect for only 11.4% of sales.

UkrAvto’s [AVTO UZ, U/R] shareholders, decided no to pay dividends from net income in 2009. They decided to dedicate all income (UAH 5.3 mln) to the development of the Company. In addition, shareholders decided to liquidate 6 sectors of UkrAvto and actively develop agro production and oil-products trading, in order to diversify the business and to offset the negative influence of the economic crisis on the major Company’s business.

Ukraine’s electricity consumption grew 11.2% YoY in January-March 2010 to 40 TWh. Growth in electricity consumption was seen in most of the sectors of the economy, with metallurgy adding 27% YoY to electricity consumption, machinery +17% YoY, chemical and oil refining + 12%, heating +4%. Household electricity consumption grew by 10%. Households still hold the major share in aggregate electricity consumption with 28%, whereas share of metallurgy grew by 3 p.p. to 25%.

Ukreximbank, government-owned bank, the third largest Ukrainian bank by assets, is conducting meetings with investors to discuss the possibility of funds raising via issue of Eurobonds, Interfax reported. No official comments from bankers available.

Russia is ending the duty free import of Ukraine’s pipes, Ukrainian news reported. The rationale behind this decision is that there is no new agreed quota on the importation of Ukraine’s pipes by Russia. The quota determines quarterly amount of pipe, which Ukraine may export to Russia duty free. However the countries have not set the quota for 2Q10.