Daily monitor

According to data from Lutskiy automobile plant [LUAZ UZ, U/R], which belongs to “Bohdan” corporation, the company decreased production output by 13.7%MoM to 1257 passenger cars in September 2009. LUAZ output for the first 3 quarters decreased by 82.6%YoY to 12251 cars.

The first month of the new marketing year on the oilseeds market reaffirmed Ukraine`s status as the world`s largest supplier of oil. The September exports totaled 180 thousand tons it`s 2.2 times more than 82 thousand tons of September 2008. Sunflower crop is above average, according to the forecast of the Ministry of Agrarian, gross yield of this crop in the current year will amount to 5.5 million tons, while in record 2008 – 6.8 million tons. Ukraine exported 2.1 million tons of sunflower oil in 2008/2009 marketing year.

The Cabinet of Ministers allocated UAH 219.111 mln from the stabilization fund of the state budget 2009 on a non-returnable basis for partial compensation for the cost of planting sugar beet and flax by agricultural producers, in particular planting sugar beets (UAH 750 per ha) and flax-fibre (UAH 640 per ha).

In the Verkhovna Rada, a bill will be considered to provide state support for the insurance of agricultural production and of farmers' incomes. This is a subsidy in form of a 50% reduction in insurance premiums assessed on an insurance contract covering agricultural production risks. The Ministry of Agriculture proposes to allocate UAH 100 m from the budget to support this project in 2010.

During a meeting of the management of Ukrzaliznytsia and EBRD new plans of UZ to purchase 400 freight railcars with the help of an EBRD loan were announced. It is expected that the bank will provide UZ with an USD 62.5 mln in 2010 within the terms of current loan agreement to to update its rolling stock. Currently the loan agreement entitled“The project for renewing of rolling stock” is being executed, and under its terms another 1000 cars are planned to be bought in 2009.

According to press service Sumy Frunze Machine Building [SMASH UZ, N/R], company is going to supply gas pumping apperatus to Gaprom Transgaz Ukhta till 2010. The value of the deal is estimated to be at level of USD 7 mln. Specifically, SMASH will supply gas pumping equipment to the Sindor and Mikun compressor stations.

According to an official of the holding company AutoKrAZ [KRAZ UZ, N/R]– the largest producer of heavy trucks in Ukraine, the company will decrease production output by 81% to 690 vehicles in 2009. About 500 trucks will be produced in the 4Q09 based on special orders from state agencies.

The Government has increased the minimum price for sugar in the 2009/2010 marketing year (September-August) by 20% to 4,5 UAH thsd/t (including VAT)(542 $/t), up from the previously approved 3,75 UAH thsd/t. At the moment this document is not yet signed by the Prime Minister. The Cabinet also raised the minimum price for sugar beets from 220 UAH /t to 258 UAH /t (including VAT).

According to a note from the National Bank of Ukraine (NBU), foreign reserves have dipped 2.6% MoM (USD 0.74 bln) to USD 28.13 bln in SeptemberThe NBU reported negative balance of the interbank currency market interventions of USD 1.23 bln in September. Therefore, foreign reserves have contracted 10.8% YtD (USD 3.42 bln). According to the earlier reports the reserves had shrunk 2.6% MoM in August 2009 and 2,8% YoY in 2008.

NAC Energy Company of Ukraine (NAK EKU), which owns majority stakes in four fossil fuelled power generating companies, in September 2009 reduced the production of electricity by 17% compared with September 2008, to 5 bln kWh. In 9 months 2009 decline in the production of electricity by the companies of NAK EKU totalled 21% (to 45.7 bln kWh), compared with 9 months 2008. In August, power companies of NAK EKU produced 24% less power than in August 2008.