Daily monitor

Ukraine faces the possibility of being left with17 mln mt of grain in July 2009.

As of November 19, Kryukiv Railcar [KVBZ UZ, BUY] will cease the supply of passenger train coaches to "Ukrzaliznytsya”, Ukraine’s State Administration for Railway Transportation, due to its outstanding debt of UAH 200 mln. Vladimir Prikhodko, the Chairman of the Supervisory Board of Kryukiv Railcar made this announcement was made at the end of last week.

The Zhydachiv Pulp and Paper Plant [ZCPK UZ, N/R] – the monopoly producer of newsprint in Ukraine, and located in the Lviv Region – recorded a 19.8% increase in production (to UAH 387.561 mln) YoY for the period January-October 2008. These figures were released by the plant’s owner Osnova-Papir.

The Kyiv Cardboard Paper Mill [KIKP UZ, N/R] in Obukhiv (Kyiv Region) – Ukraine`s leading pulp and paper producer – has released results for the first ten months of 2008. From January to October 2008, the company increased production by 38% YoY (to UAH 930.08 mln), according to Interfax-Ukraine.

Starting November 27, 2008, the National Bank of Ukraine (NBU) will establish the official USD/UAH exchange rate based on the previous day’s Interbank market rates. Prior to this decision, the NBU has been establishing the official USD/UAH exchange rate based on the Interbank foreign exchange market outcomes, NBU interventions and exchange rate changes on international markets.

A corporate relations officer of the Interpipe Group, Oleg Kuzmin, spoke to the Delo newspaper on the prospects of the tubes and pipes markets. Kuzmin expected the markets to stabilize only in one and a half – two years. The Group will continue to push with its mini-mill project that will secure the supply of billets for pipes. Because of the current crisis, the Group plans to cut production 57% QoQ in 4Q08. However, because of the accumulated inventories, sales will drop only 22% QoQ in 4Q08.

Shareholders of Poltava GOK [PGOK UZ, U/R] will convene at an EGM on December 30, 2008, and discuss two unexpected questions. The first question of the agenda is changing the structure of the managing bodies of the company. The second question is changing the registrar.

Ukraine will start negotiations with the Euro Commission on the development of a common energy union, Ukrainian VP Grigoriy Nemyrya informed yesterday. The negotiations will begin on November 25 and during the first stage of the process, Ukrainian authorities plan to harmonize Ukrainian legislation in the energy sector to accord to European energy rules.

The Cabinet of Ministers of Ukraine overturned the ruling, according to which the stakes in four thermal power generating companies (GenCos) and stakes in six distribution companies (DisCos) were to be withdrawn from the control of the National Energy Company of Ukraine (NECU) and handed over to the State Property Fund (SPF).

According to Nadra Bank’s press service, Group DF became the major investor in Nadra Bank on November 19, 2008. "Nadra Bank has attracted a large investor, Group DF, a private international group of companies. Today, the bank possesses a stronger position than earlier, due to the synergy of a successful banking brand and a strong industrial group," states the press release.