Daily monitor

After a successful harvest in 2009, it is expected that Ukraine will gather 15-20% less grain next year. The key factors leading to this include complications of the autumn field works due to unfavorable weather conditions and lack of funding for Ukrainian farmers for fertilizing. The ammonium nitrate price seasonally jumped in late summer to exceed 1900 UAH per metric ton. As a result, farmers underfertilized at least 250 thsd metric tons of ammonium nitrate during the autumn field campaign. Farmers have also manured less than half of what is actually required in terms of complex fertilizers. Traders note that they haven’t seen such a drop in demand since the early 2000s.

Azovmash has announced that it intends to deliver a lancing machine to the company Novolipetsk Steel. The date for the equipment’s delivery is slated for the first quarter of 2010. The value of this contract has not been publicly disclosed.

The National Bank of Ukraine (NBU) issued information that the currency inflow to Ukraine outperformed outflows in November 2009. This was stated in the NBU’s Ukrainian currency market overview. The Bank also noted that it has reduced the volume sold at FX auctions for individuals with FX-denominated borrowings by half to USD 72 mln. Since the beginning of the month, the NBU has had a minimal direct presence on the FX market. Nevertheless, the UAH exchange rate has been stable and has even seen a 0.1% appreciation.

Turboatom [TATM UZ, U/R] has successfully fulfilled the delivery of high pressure rotors to the Kola Atomic Power Station in Russia’s Arctic Murmansk Region. The equipment supplied is valued at a total of UAH 10 mln (USD 1.22 mln). This equipment for the APS was purchased in the context of the project for reconstructing the Kola Atomic Power Station, which is being carried out by the Concern Rosunergoatom.

Ukraine intends to propose that Russia an arrangement whereby they exchange minority shares in their aviation companies, according to a statement made by Ukrainian Prime Minister Yulia Tymoshenko. Among the possible joint projects for An-140, An-148 and An-70 were mentioned. Earlier, Russian Prime Minister Vladimir Putin noted the necessity of activizing inter-state cooperation in the field of aviation building.

Myronivsky Hliboproduct [MHPC LI], a major Ukrainian poultry meat producer, finished 3Q2009 with a net profit of USD 13 mln, which is 5.3 times lower than the USD 69 mln (UAH 103 mln) posted in 3Q2008. The Company’s revenues declined by 22% YoY in 3Q2009 in dollar terms, or by USD 56 mln, to USD 198 mln. Its EBITDA, in UAH, increased by 37% YoY to UAH 547 mln (vs. UAH 399 mln in 3Q2008). However, in USD, EBITDA decreased by 15% YoY to USD 70 mln (vs. USD 82 mln in 3Q2008).

The State Property Fund has announced its intentions to put a 76% stake in the holding company Luhanskteplovoz [LTPL UZ] up for sale in December 2009. The SPF made changes with respect to its plan for privatizations to be carried out in December. It also thereby excluded the sale of the 67.8% state-owned stake in Ukrtelecom [UTLM UZ]. Previously, the Fund announced that the76% stake in LTPL would be put up for auction on December 2, 2009.

KTZ, the Kazakhstan railway monopolist, and Uralvagonzavod, one of Russia’s largest railcar plants, have reached an agreement for the construction of a new railcar plant. According to the agreement, the new plant would be at capacity to produce an estimated 3 thsd railcars in the first stage and nearly 5 thsd cars in the second. The time frame for the realization of the project has not yet been disclosed.

The joint-stock company Sumy Frunze Machine Building [SMASH UZ] has successfully supplied 3 gas-turbine power-generating units to the Russian OJSC ‘Surgutneftegas’, one of SMASH’s long-lasting clients. The equipment is designed for use at the Rogozhnikovskaya gas-turbine electric power station.

As of November 18, importers’ claims for raw cane sugar imports to Ukraine reached the 100% mark of the quota set by the World Trade Organization. The quota level is currently 263.9 thsd metric tons. The largest share of the total amount of imports will come from Brazil (73.6%). The claims were filed by Ukraine’s major sugar producers; namely, by the Ukrros Sugar Union Ukrros, Ukrprominvest, Rise-Sugar, and the Dakor Agro Holding.