Daily monitor

Sumy Frunze Machine Building [SMASH UZ, N/R], one of largest European producers of equipment for the oil, gas, and chemical industries, has reported on the successful delivery of gas transfer station equipment to Uzbekistan, which will be used for an underground Gazli gas storage facility. According to Interfax, this equipment is valued at approximately USD 75 mln.

On Tuesday, the press service of Rodovid Bank [RODB UZ, U/R] announced that the ISTIL Group is going to acquire a 39% stake in the bank in March.

The Cabinet of Ministers of Ukraine has established the procedure for VAT compensation for grain traders, in order to reimburse its debts on VAT.

According to data released by the State Statistics Committee of Ukraine, Ukraine’s industrial output fell 34.1% YoY in January 2009, following a drop of 19.8% in October 2008, 28.6% in November, and 26.6% in December. Industrial output, therefore, fell 16.1% MoM in January 2009, as compared to a 12.4% drop in January 2008.

The trade balance deficit grew to USD 13.5 bln in 2008, as stated in a note by the State Statistics Committee of Ukraine. The figure amounts to nearly -8.4% of the anticipated GDP and is 70.9% of the 2007 USD 7.9 bln (-5.6% of GDP) trade balance deficit figure.

As announced by EBRD President Tomas Mirow, the EBRD plans to provide EUR 500 mln towards the recapitalization of Ukrainian banks.

On February 16, Russian President Dmitry Medvedev and Bolivian President Evo Morales signed a new intergovernmental agreement on military cooperation.

The Unicredit Group intends to increase the statutory fund of Ukrsotsbank [USCB UZ, U/R] by UAH 0.5 bln to UAH 1.57 bln, according to USCB Chairman of the Board Borys Tymonkyn.

The UkrAVTO Corporation [AVTO UZ, N/R] – Ukraine's biggest car-maker and dealer, which is also known as the Ukrainian Automobile Association – finished 2008 with a net profit of UAH 521.265 mln.

Kernel [KER PW, BUY], a Ukrainian bulk oil and grain trader, released its financial results for 2Q08/09 last Friday. The company’s financial year ends in June.