Daily monitor

According to the World Steel Association, in 2009, global steel production experienced a contraction of 8% or by 1.22 bln tonnes. Steel production in the CIS declined by 14.7%, while for the EU, the decline stood at 29.7%. China enjoyed a growth in steel output by 13.5%. For India, output increased by 2.8%.

Ukrainian Railways (Ukrzaliznitsya) intends to purchase 63 passenger railcars in 2010, said the first deputy of the head of the Main Passenger department, Igor Breus.

In 2009, sunflower oil output increased by 49.4% YoY or 898.6 thsd tonnes to reach 2.71 mln tonnes. In 2008, sunflower oil output stood at 1.82 mln tonnes.

Turboatom [TATM UZ, U/R], a large Ukrainian turbine-producer, has reported on its production results for the first half of January. The Company reported a marketable output of UAH 84 mln and UAH 78 mln in factory shipments.

The Secretariat of the President of Ukraine announced that, in 2009, the amount of funds in the State Treasury account have declined from UAH 7.7 bln. to UAH 1.1 bln. This essentially means that the State Treasury’s account balance continued to decline throughout 2009. At the moment, the publication of data on the status of the State Treasury’s account is suspended by a decree issued by Prime Minister of Ukraine Yulia Tymoshenko.

On January 18, 2010, Kernel Holding S.A. [KER PW, BUY] provided minority shareholders a binding offer to acquire a 37.6% minority shareholder stake in Allseeds. Kernel is offering a sum of USD 28 mln for the stake, which is subject to adjustment depending on Allseeds’ financial results for 1Q2010. The offer is valid until January 31, 2010.

According to Andre Kuusvek, Director of the Ukraine division of the EBRD, the Industrial Union of Donbass (IUD) has commenced negotiations with 40 separate banks with respect to the restructuring of its debt. He also added that the EBRD holds a neutral view on the purchase of the 50%+2 stake in IUD by a group of Russians investors. However, at the same time, he confirmed that IUD will have the possibility to gain access to cheap Russian raw materials.

The Ministry of Fuel and Energy has released statistics on electricity consumption and production in Ukraine for December and 2009 as a whole. Electricity production in Ukraine grew by 6% YoY in December 2009 and by 11% MoM. For the whole of 2009, Ukraine produced 10% less electricity than it did in 2008.

DTEK Vostokenergo and Ukrinterenergo have acquired the right to export electricity in February 2010 from Ukrenergo. Zakhidenergo [ZAEN UZ, HOLD] didn’t participate in this auction, although the Company had earlier intended to do so.

According to the State Statistics Committee, 12.6 thsd railcars were produced in Ukraine in 2009, implying a 58% drop YoY. At the same time, freight railcar output in Ukraine showed a 206.7% growth YoY in December 2009.