Daily monitor

During the 2009/2010 sugar campaign, Astarta [AST PW, BUY] produced more than 225 thsd tonnes of high quality sugar. Thus, the Company ranked as the number one sugar producer in Ukraine in the 2009/2010 season, increasing its share of national sugar production from 15% in 2008/2009 to 16.4% in 2009/2010. Among other positive trends was the fact that more than 90% of the sugar beet processed was grown in-house, securing the Company’s inputs.

The Cabinet of Ministers adopted “The government target program of railway transport reform for 2010-2015” and “The strategy of railway transport development until 2020”. The program and strategy were approved on December 16, 2009 in the form of resolutions, registered as 1390-00 and 1555-00 respectively

The Finance and Credit Bank (F&C) has reached an agreement with Eurobond holders concerning the restructuring of USD 100 mln worth of Eurobonds. Bondholders agreed to postpone the redemption of 95% of the original redeemable sum for the Eurobonds from January 2010 to January 2014, as well as an increase in the coupon rate from 10.375% to 10.5%. The remaining 5% of the Eurobonds nominal value would be paid in the near future.

Kredobank [ZUKB UZ] has announced the decision to increase its statutory capital by 36.8 billion ordinary shares with a par value of UAH 0.01 per share. The current number of shares for ZUKB is 155.1 billion shares.

According to an official press release by the Industrial Union of Donbass (IUD), a 50%+2 stake in the Company was sold to a group of Russian strategic investors, headed by Mr. Katunin (owner of the international steel trader Carbofer and former owner of the EVRAZ group). The total value of the deal has not been disclosed.

Ukraine’s steelmakers experienced a 20% decrease in total steel output in 2009 to the level of 29.8 mln tonnes.

Turboatom [TATM UZ, U/R], a large Ukrainian turbine-producer, reported a net income of UAH 127.2 mln (USD 15.0 mln) in 10M09, demonstrating a growth of 27.9%YoY. The Company also adopted its order book of UAH 2 bln (USD 250 mln).

The Cabinet of Ministers intends to initiate a specialized agricultural bank in the first quarter of 2010. According to Prime Minister Yulia Tymoshenko, the creation of this structure would help build a sound public policy with repect to lending within the agroindustrial complex, and also provide credit support according to the actual technological needs of Ukraine’s agricultural industry. The Prime Minister considers that loans should be offered for a period of 5-7 years at an annual interest rate of 4-5%.

Ukrainian avia companies are currently in the process of negotiating the delivery of nine Ukrainian aircrafts to Laos, Egypt and the United Arab Emirates, according to the Ministry of Economy.

In the 2010/2011 production season, the Ukrros Sugar Union [UROS UZ, 36U1 GR], one of the largest sugar producers in Ukraine, intends to increase its production of sugar beet by 25% YoY, or by 114 thsd tonnes, to 569 thsd tonnes. This autumn, the Company gathered 455 thsd tonnes which is 70 thsd tonnes less than achieved in 2008.