Daily monitor

A local court in the Donetsk Region has declared the Doncement company to be bankrupt. The court has initiated the process for the company’s liquidation.

Ukrainian President Viktor Yuschenko issued a decree, which bans the privatization of four electricity generation companies – Centrenergo [CEEN UZ, BUY], Dniproenergo [DNEN UZ, BUY], Donbasenergo [DOEN UZ, BUY] and Zakhidenergo [ZAEN UZ, BUY] – as well as turbine manufacturer Turboatom [TATM UZ, HOLD] and the Kryvyy Rih Mining and Dressing Plant of Oxidized Ores.

The Ukrproduct group [UKR LN, N/R], an independent Ukrainian dairy producer, has decreased its CapEx by 22% YoY to USD 1.3 mln.

The Ivano-Frankivskcement company [IVFC UZ, N/R] has signed an agreement for the sale of its greenhouse gases quotas to the European Bank for Reconstruction and Development and the European Investment Bank.

Sumy Frunze Machine Building [SMASH UZ, N/R], one of largest European producers of equipment for the oil, gas, and chemical industries, has announced that it expects to increase its production by 40% YoY in 2008, which would put the total at roughly UAH 1.92 bln in value terms. For the same period, the company anticipates that its sales will grow by 51% YoY, from USD 281.4 mln in 2007 to reach USD 425.4 mln in 2008.

Rodovid Bank [RODB, U/R] plans to increase its statutory capital by 57%, or UAH 250 mln, to UAH 685 mln through an additional issue of shares, according to a report issued by the bank. According to this report, the increase in the bank's statutory capital will be put on the agenda of a general meeting of its shareholders, which is scheduled for January 30, 2009.The bank plans to issue additional shares with a face value of UAH 1,000.

According to preliminary data, it appears that Zaporizhtransformator [ZATR UZ, N/R] – the world's largest manufacturer of transformer equipment – will achieve a 2008 sales level of about USD 700 mln, which is 70% higher than the 2007 level of USD 412 mln.

Commerzbank AG is planning to buy an additional 15% share in Forum Bank[FORM UZ, U/R] within the next three years, according to Wilhelm Nuese, the Deputy Chairman of the Supervisory Council of Forum Bank. “There is an option to buy an additional 15% in the Ukrainian bank within three years. This way we are planning to concentrate a 75% plus one share in the Ukrainian bank. We have many plans to develop our business here,” he stated.

Ukraine’s giant telecommunications company Ukrtelecom [UTEL UZ, U/R] – the country’s fixed-line incumbent – has affirmed its plans to implement a 53.8% increase in its subscriber base for 3G communication services in the UMTS standard, offered under the brand ‘Utel’, by the end of 2008. Such an boost would bring the number of clients for this service up to 200 thsd.

The Zaporizhya-based Motor Sich [MSICH UZ, BUY] company – the largest producer of aviation jets and gas-turbine units in the CIS – has publicly stated that its order portfolio for 2009 has grown considerably and that signed agreements will allow the company to retain a positive pace of sales growth in 2009.