Daily monitor

The Ministry of Economy of Ukraine announced that quotas for Ukrainian exports of some steel products to the European Union have been abolished. Bohdan Danylyshyn, the Ukrainian economy minister, who is visiting Belgium, announced the abolition in a parenthetic statement, cited on the Ministry’s web site, following meetings with the European Commission officials.

Electricity distribution company Sevastopoloblenergo [SMEN] announced a dividend payout of USD 3.2mln during its AGM May 27. The company will direct 100% of its net income for FY 2007 to dividend payout, implying USD 0.12 per share.

Interpipe Nyzhnodniprovsky Pipe Rolling Works [NITR UZ, SELL] is increasing its non-destructive testing facilities, which will enable the company to hold full, non-destructive testing of its steel pipe products to improve them for consumers.

Electricity distribution company Zhytomiroblenergo [ZHEN] decided not to pay dividends for FY2007 during its AGM May 20.

Kernel Group [KER PW, N/R], one of the top Ukrainian sunflower oil producers, has signed a preliminary agreement with a Ukrainian company in order to acquire a 2.5 thsd ha agriculture farm under lease in central Ukraine.

Azovstal [AZST UZ, BUY] announced an updated majority shareholder composition. According to a May 26 official filing, Metinvest B.V. of the Netherlands owns 2.959 bln shares (70.55%), and Metinvest International S.A. of Switzerland controls 0.904 bln shares (21.56%).

Electricity distribution company Odesaoblenergo [ODEN] approved a bond issue of USD 100mln during its AGM May 22, 2008. The money will go towards construction of the Combined Cycle Power Plants (CCPP) near the city of Odesa.

Poltavaoblenergo [POON] CEO Vladimir Cherniavskiy believes that privatization of the remaining 25% stake in the electricity distributor will solve a long-standing corporate conflict within the company. This will positively influence POON and open new perspectives for the company’s development, he told the Interfax news agency. During his interview, he also mentioned that successful privatization will allow the company to attract international funding for further business development.

On May 23, shareholders of Dniprospetsstal [DNSS UZ, U/R] re-elected the Board of Directors in full at an EGM. The meeting also decided to employ Energy Registrar Company LLC as the registrar.

On May 23, Moody’s, the rating agency, upgraded its outlook on the B3 rating of Concern Stirol [STIR UZ, U/R] from “negative” to “stable”.