Daily monitor

Zaporizhya Automobile Plant [ZAZA UZ], owned by UkrAVTO Corporation [AVTO UK] has announced plans to stop production of Slavuta and Tavria-Pickup models since January 2011 due to low profitability of production caused by falling demand.

Prominvest bank has opened a credit line with total volume of USD 35 mln for Gornie Mashini – a major owner of 5 mining equipment producing companies including Donetskgormash [DGRM UK] and Druzhkovka Machinery [DRMZ UK] for increasing circulating capital.

Net loss of Ukrainian banking system in 11M10 amounted to USD 1.2 bln, which is 66% lower than in 11M09.

MCB Agricole [4GW1 GR, BUY] has acquired farm Peremoga in Odessa region with 2.69 thsd ha of arable land and has increased its total land bank to 93 thsd ha.

According to Thursday press office of Kryukivka Carriage [KVBZ UK], the state has repaid USD 23.3 mln out of USD 40mln of debt on VAT compensation to the company. Kryukivka Carriage has earlier stated that lack of turnover capital caused by VAT compensation delays slows down company development.

On December 15 2010 Bogdan Corporation, owner of Bogdan Motors [LUAZ UK], has concluded a Memorandum of Cooperation with MAN (Germany) on SCD-assembling tourist trucks under MAN-Bogdan double brand since 2011. The memorandum assumes further localization enhancement and export opportunities for Bogdan Corporation.

The Cabinet of Ministers of Ukraine has allowed the State Property Fund of Ukraine to conclude amicable settlement agreement with Bryansk Machinery on purchasing a 76% share of Luganskteplovoz [LTPL UK].

Kryukivka carriage [KVBZ UK] has supplied 5 more passenger carriages to South-East Railways which finishes a contract between the companies with overall volume of USD 13.5 mln for 21 train cars.

Ukrnafta’s oil, gas condensate and natural gas production continued to decline in November. The output of oil and gas condensate was down 4.8% MoM, while the natural gas output posted a modest 0.6% decline over October figure.

A shareholder meeting of Azovzagalmash [AZGM UK] has taken a decision to lease asset complex of Mariupol Heavy Machinery [MZVM UK] for minimizing expenses. The decision was adopted due to recommendation of Azovmash creditor banks’ coordination committee as a part of debt restructuring program. The measure is expected to ease management, marketing and production planning, increase transparency.