Daily monitor

The Ukrainian Government has increased the minimum price for sugar in the 2010/2011 marketing year (September-August) by 63% to 5,100 UAH/tonne (including VAT), which is equivalent to 532 USD/tonne net VAT. This is up from the previously approved price of 3,125 UAH/tonne for the 2009/10 marketing year.

According to the Ukrnews agency, in January 2010, Interpipe Novomoskovsk boosted pipe output by 22% MoM, or by 2.3 thsd tonnes, to 12.8 thsd tonnes.

The Closed Joint Stock Company ‘Agricultural Enterprise Tsukrove’, which is affiliated with the Ukrros sugar union [36U1 GR, UROS UZ], intends to reorganize itself from a closed joint-stock company (CJSC) into a Limited Liability Company (LLC). This very question is included for consideraton on the agenda of the shareholders' meeting of the Agricultural Enterprise Tsukrove, which is scheduled for March 2, 2010.

According to the Ukrkoks association, Ukraine’s coke makers boosted coke output by 19% YoY to 1.52 mln tonnes in January 2010. In comparison to December 2009, however, the output level represented a 2.3% MoM decrease.

The Ministry of Economy intends to simplify the procedure for obtaining licenses for the import of raw cane sugar. In particular, the Ministry proposes cancelling the requirement to present both the original and copy of the certificate of origin issued by the relevant authorities in the country of origin. It also proposes establishing a 60-day period of validity for licenses issued, in place of the currently applicable rule, whereby issued licenses are valid until December 31. The authors of these proposals believe that such a strict term should encourage importers to proceed quickly in transacting raw sugar imports

In 2010, Kryukiv Railcar intends to boost its freight railcar output by 80.7% to 6 thsd cars. According to the Chairman of the Board of KVBZ, Evgeniy Hvorost, the main consumer for the Company’s production would be Russia, Kazakhstan, Belarus and the Baltic countries. According to Mr. Hvorost, Kryukiv Railcar also plans to produce 40 passenger railcars in 2010 vs. just 20 in the 2009.

The two major Ukrainian foreign-owned banks reported on their 4Q09 financial results. Ukrsotsbank [USCB UZ] reported a UAH 42 mln net income in 4Q09. In FY2009, the Bank posted a UAH 127 mln net income.

In January 2010, electricity generating companies owned by Energy Company of Ukraine (ECU) boosted their aggregate power output by 15% MoM to 7.1 TWh, or by 14.5% compared to January 2009. Notably, ECU’s fossil-fuelled power generating companies, including Centrenergo [CEEN UZ], Dniproenergo [DNEN UZ], Donbasenergo [DOEN UZ] and Zakhidenergo [ZAEN UZ], saw their electricity output increase by 17.4% YoY in January 2010, whereas the ECU’s non-public combined heating and power plants saw electricity output drop by 25%.

MHP S.A. [MHPC LI, HOLD], a leading Ukrainian poultry producer, provided its operational results update for 4Q2009 and the full year ended December 31, 2009

Azovmash, one of the largest Ukrainian machinery holdings, which controls both Mariupol Heavy Machinery [MZVM UZ, BUY] and Azovzagalmash [AZGM UZ, SELL], reported that it has concluded an agreement on the shipment of three ATZ-22 aerodrome fuelers to Vietnam in 2010. According to the Company, the base for the fueler building will be lorries made by AvtoKrAZ [KRAZ UZ, U/R]. The value of this contract has not yet been publicly disclosed.