Daily monitor

According to Ukrainian Statistics agency, in April-June 2009, real GDP in Ukraine decreased by 17,8% compared to April-June 2008. The largest fall in gross value added saw the construction sector (-47%), processing industry (-33%), mining industry (-20%) and trade (-18%). The only sector of the real economy which showed a slight increase (+2%) was agriculture. Nominal GDP for April-June amounted UAH 207 096 mln. GDP deflator in the 2 quarter of 2009 was 7.8% YoY. In the 1 st quarter 2009 real GDP declined by 20% YoY.

The Ministry of Agrarian Policy of Ukraine has drafted a decree of the Cabinet of Ministers of Ukraine, under which sugar mills will be able to attract interest-free loans from the Ukrainian budget, secured by future production. The size of the loan cannot exceed 80% of the value of the collateral.

One of the largest Ukrainian dairy producers, Ukrproduct Group [UKR LN], reported unaudited 1H09 interim results. Net sales declined by 6.5% y-o-y to GBP 22.1 mln (+8.3% y-o-y in UAH terms), EBITDA decreased by 17,5% to GBP 1.7mln (+4.6% in hryvnia) and net income was down by 38,2% to GBP 0.6mln (-28.4% in hryvnia).

Moody's Investors Service downgraded the probability of default rating of the Naftogaz to “Ca” from “Caa2”. At the same time, Naftogaz Ukraine's foreign currency corporate rating remains unchanged at “Caa2”. The ratings remain on the Rating Watch List, with their outlook changed from “negative” to “undefined”.

On Friday, Minagropolitics announced that in the 2008/2009 marketing year (MY) export of sunflower oil from Ukraine grew by 58,5% compared to the previous MY, to 2,1 million tons, or $1,57 billion, which is the best figure in Ukrainian history. Export of sunflower seeds increased 10,1 times, to 769 thousand tons, or $191,8 millions.

Ukrainian producer of oilseed and grain company Landkom International has increased its gross harvest of oil crops in 2009 by 74,6%, or 16,845 tons to 39.437 tons in comparison with 2008. In the current year the land under the oil crops was 14.630 ha, and its average yield 2.7 tons per hectare. The entire harvest of oilseeds has been sold at an average price of 327 dollars / ton (including VAT).

On Friday, the Board of the Wholesale Electricity Market (WEM) has decided to increase the minimum reserve of anthracite coal at the fossil fuelled power plants from 140 thsd mt to 200 thsd mt before October 1, 2009.

Shareholders of the companies LandWest [4K1A GR] and Dakor [DAKOR UZ, WI81 GR] have finally announced completion of their merger into a new company, Dakor Agro Holding (Cyprus).

Trading company “Kernel-Trade” (Kyiv) has attracted a sindicated loan of USD 170 mln. The crediting rate is (Libor + 5,0%)/0,98, maturing August 31, 2010. The purpose of the loan is to finance raw materials purchase and to cover the expenses of storage, transportation and processing of sunflower seeds.

According to a Sumy Frunze Machine Building’s [SMASH UZ, N/R] press service, the companywill supply 54 pump complexes to Novoronezhskoy nuclear station (Russia) through April 2011. The contract was signed in the third quater of 2009 with a value of RUB 154 mln.(USD 5.1 mln.)