BUSINESS NEW EUROPE,bne, WEEKLYDIGEST FOR UKRAINE
Monday, March 30 to Friday, April 3, 2009
Executive Summary:
FRIDAY, APRIL 3
1. Ukraine's Top 150 oligarchs worth $33.3bn
2. NBU says banks flouting prudential rules in desperate effort to make some money
3. Ukraine to be winner from G20 talks
4. Rada deadlocked in yet another dispute
THURSDAY, APRIL 2
5. Political calm in Ukraine: Near or far?
6. Rada vote on presidential election date faces court challenge
7. Recapitalization of two Ukrainian banks to begin soon
8. Rada vote on presidential poll seen bringing forward early parliamentary election
WEDNESDAY, APRIL 1
9. Moscow threatens to withhold $5bn loan if Russia not included in pipeline modernisation
10. Ukraine Anti-crisis packaged
11. Ukraine to injected $6bn into 10-15 largest banks
12. Ukraine may not get second tranche of IMF loan
TUESDAY, MARCH 31
13. Alchevsk Steel [Buy; FV $0.018] continues to increase output
14. EU's grain harvest to shrink 8.4% YoY in 2009/10
15. Ukrnafta's gas price kept at $25/mcm
16. Time Warner will run CME in four years
MONDAY, MARCH 30
17. Motor Sich cancels 2008 dividends as profits sink
18. PAKKO to sell stake within 3 months
19. Ukraine's gas price to hike 16% to US$ 148/tcm
20. Retail Group targets US$ 50-100mn from equity sale
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1. Ukraine's Top 150 oligarchs worth $33.3bn
bne, April 3, 2009
The combined wealth of the top 150 Ukrainian businessmen is $33.3bn, the Ukrainian weekly Fokus reports this week.
Tycoon Rinat Akhmetov is still at the top of the list with a personal wealth of $3.7 billion. however the owner of System Capital Management (SCM) has seen his packet much reduced from the $31.1bn he was worth in July 2008. Last summer he was easily the richest man on the territory of the former Soviet Union and outpaced IKEA's founder Ingvar Kamprad by $100m to become the richest man in all of Europe. Ease come, ease go.
But all of Ukraine's rich have been badly hurt by the crisis. Nadiya Shalomova who organised the survey for Fokus, said at an Interfax press conference the total wealth of the top businessmen has dropped by about 70% from about $100bn last year. At the same time the number of billionaires Ukraine sports has fallen from 21 to only 4 in the last year, she said. (//IMG:0409_Ukraine_top_ten_richest_men.gif:IMG// -1-030409)
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2. NBU says banks flouting prudential rules in desperate effort to make some money
bne, April 3, 2009
Ukraine's National Bank of Ukraine (NBU) says it is "alarmed" by the actions of some banks, which are flouting obligatory reserve rules and making heavy financial bets in a desperate effort to improve their health.
"In February 2009, 28 banks (15% of total number of banks) did not adhere to the procedure for the formation of obligatory reserves over the reservation report period, while 97 banks (52.7% of their total number) committed 948 cases of violations of daily reservation of funds for obligatory reserves at their correspondent accounts at the NBU as of the early operating day," the NBU said in a statement reports Interfax.
The statement comes a week after the NBU punished 16 banks for breaking the rules, after making surprise inspections in February. The offending banks received written warnings and personal fines were imposed on the heads of some of the banks. NBU curators were sent to other banks.
In four cases the NBU actually imposed temporary administration, "to send a clear message" to banks that they will not be allowed to gamble with the money they have left. (-2-030409)
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3. Ukraine to be winner from G20 talks
Ukrsibbank, April 3, 2009
Emerging markets credit&FX recorded broad gains yesterday coupled with a rally in US equities ahead of today's G20 meeting.
Ukraine is one of the biggest gainers together with Turkey, Argentina, Mexico and several other names shaken by financial meltdown. The key reason for the rally is G20 leaders' intention to conduct a major expansion in resources available through the IMF, possibly including a tripling of its war chest to USD750 bn. China seems to be seeking to increase its power by negotiating an enhancement of its 3.66% voting right in return for funds.
Mexico applies for $47 bn loan from the IMF; request was welcomed by Dominique Strauss-Kahn. The loan should be stabilizing one, immediate use of money is not implied.
There have also been overnight talks that the IMF would be allowed to issue SDR denominated bonds which China and other currency reserve rich countries might allocate to official portfolios. SDR 250 bn can be distributed to countries according to their quotas. For Ukraine this would imply approximately $2 bn inflow on top of the IMF loan. (-4-030409)
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4. Rada deadlocked in yet another dispute
bne, April 3, 2009
Fresh infighting has broken out on the floor of the Rada and caused Ukraine's parliament to shut down for at least two days.
The opposition Party of Regions said it would post sentinels in the building around the clock to ensure nothing is done until Monday morning. Regions started the action on Thursday, as part of a demand that the government immediately consider its anti-crisis plan and another bill amending the 2009 state budget.
Regions deputies swarmed the podium during Thursday session and even swapped blows with some coalition deputies - punch ups in the Rada has become a hallmark of Ukraine's style of democracy.
Political tensions are now running very high after the Rada forced through a bill setting the date for earlier than expected presidential elections on October 25. The rushed elections was partly a move to head off Ukrainian president Viktor Yushchenko, who was threatening to call for a constitutional referendum. Ukraine election rules ban referenda six months prior to an election.
Ukrainian Prime Minister Yulia Tymoshenko laid into Regions' deputies, likening them to "Somalia pirates," and said they were they were attempting to sabotage the work of government. She also claimed that Regions is hoping to force early parliamentary elections (fourth in four years if it happens) that would be held concurrent with the presidential elections.
"Cooperation between [Regions leader] Viktor Yanukovych and the president is involved here. They want early parliamentary elections to be held," Tymoshenko said at a news conference in Kyiv ion Thursday. "Our political team will not allow this to happen. There are no grounds to hold early parliamentary elections."
Yet another political fireworks display is all Ukraine needs. Negations with the IMF over the stalled second tranche of aid, worth $1.9bn, is badly needed. The IMF is due to respond to Kyiv suggestions in a letter early next week, but some analysts say that chances of securing the second tranche now look more distant than ever. (-3-030409)
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5. Political calm in Ukraine: Near or far?
Rencap, Russia
Wednesday, April 1, 2009
Yesterday (31 Mar), Ukraine's President Victor Yushchenko made a speech to the country's parliament for the first time since Feb 2006. The speech focused largely on long-term strategic issues, such as constitutional reform, including the creation of a second chamber of parliament. Among a number of important comments on the current economic situation, Yuschenko cited a real GDP drop of 25-30% YoY in Jan-Feb 2009 (the cabinet has previously refused to release data on GDP dynamics starting from this year), and urged support for banks and state-owned Naftogas, which, he added, required changes to the 2009 budget. At the same time, the president proposed cutting budget expenditure, by reducing the number of budgetary programmes and reining-in excessive social spending.
__ The Rada yesterday voted only for two of the five draft laws from the anticrisis package prepared by the cabinet to meet the IMF's recent requirements (see Ukraine:
Expected changes to 2009 budget could increase revenue by UAH7.5bn, bring back IMF, dated 26 Mar). Parliament supported an increase in excise tax on alcohol, diesel and tobacco products, which, according to cabinet estimates, should result in UAH5.5bn of additional budget revenue. At the same time, the Rada yesterday declined to place a number of the cabinet's suggestions on the agenda, as the pro-presidential element of Ukraine's majority coalition was not prepared to support them, specifically: 1) an increase in the single tax (a type of flat tax) on private entrepreneurs; 2) a reduction in pensions to deputies and some other governors; and 3) UAH6.1bn of additional subsidies for Naftogas, to cover the difference between the import price of gas and gas tariffs for households and utilities.
Unexpectedly, deputes associated with the president did not back planned changes aimed at balancing the country's pension fund (previously, the president's office supported this idea, despite having differing views on the potential scale of the associated increase in budget revenue). We think this likely reflects the personal views of some deputes, rather than the president's influence on his party, therefore it may be resolved after intra-coalition negotiations. Additional support for Naftogas is more contentious, we think, as the president supports an increase in gas tariffs for utilities, which should result in a lower compensation requirement for Naftogas from the budget, thereby avoiding an increase in expenditure. The cabinet is seeking to avoid such a move, in view of impending elections.
These, latest developments have spurred a new wave of political accusations between the president and Prime Minister Yulia Tymoshenko, following two weeks of visible warming in their relations.
However, we do not think the disagreements are crucial to negotiations with the IMF, as both the president and prime minister fundamentally agree on the need to cut Ukraine's budget deficit.
__ Economic outflows. The IMF today welcomed recent moves by the Ukrainian authorities, but is still not sufficiently satisfied to restart negotiations on the second tranche of its standby loan to the country. The fund states that further moves are needed to balance the country's pension fund.
__ Political outflows. Today, the Ukrainian parliament voted to schedule the next presidential election on 25 Oct 2009 (the president had suggested 17 Jan 2010). On one hand, we think the agreed date could favour Tymoshenko, as her popularity is declining as the financial crisis intensifies and disputes with the president continue, therefore the sooner the better for her. On the other hand, the proximity of regular elections has removed all questions about possible early presidential or parliamentary elections. At the same time, a new and important financial issue has appeared: Ukraine now requires additional budget expenditure to finance this year's elections. The president has already announced his intention to challenge the date of the election in court. -5-030409
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6. Rada vote on presidential election date faces court challenge
Troika, Russia, Thursday, April 2, 2009
Yesterday the Rada voted to hold the next presidential elections on October 25, 2009. A total of 401 votes were cast in favor of the resolution from members of the Party of Regions, the Yulia Tymoshenko Bloc, the Communists, the Lytvyn Bloc and even half of the pro presidential Our Ukraine People's Self Defense party. Although it is the Rada's responsibility to set the date for presidential elections, the decision is very likely to be challenged in Constitutional Court by President Viktor Yushchenko, as the approved date of the elections conflicts with the direct constitutional norm (from January 1, 2006) to hold elections on the last Sunday of the last month of the president's fifth year in office. The likely date that qualifies is January 17, 2010. The lawmakers' decision seems politically motivated and intended to mirror Yushchenko's currently extremely low public approval rating (2 3%).
Iryna Piontkivska -6-030409
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7. Recapitalization of two Ukrainian banks to begin soon
Galt &Taggart, Kyiv, April 2, 2009
Ukraine will begin recapitalizing two banks through the purchase of 50% + 1 share, Interfax reported yesterday citing the Ministry of Economy's website. The government plans to provide UAH 44 bn (US$ 5.7 bn) to recapitalize the Ukrainian banking sector. As it was reported earlier seven banks applied for the government help in capital increase: Bank Kyiv, Ukrprombank, Nadra, Rodovid Bank, Ukrgazbank, Finansy & Kredit and Imeksbank. G&T comment: Given the NBU's and the Cabinet's recent statements, the key task is to restore the confidence to banks within the population. Thus Ukrprombank and Nadra look the most likely candidates to be the first in the queue for the government bailout. Both banks have the largest market shares in terms of retail deposits and assets among the abovementioned banks. -8-030409
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8. Rada vote on presidential poll seen bringing forward early parliamentary election
Dragon Capital, Kyiv, April 2, 2009
In a move likely aimed at preventing dissolution of the Verkhovna Rada and early parliamentary elections, parliament voted yesterday to schedule next presidential elections almost three months earlier than originally expected, for October 25, 2009. (Interfax) The decision received overwhelming support from 401 deputies in the 450-seat Verkhovna Rada, with only part of the Our Ukraine faction loyal to President Viktor Yushchenko voting against. The legislature ignored the president's proposal that the election be held on January 17, 2010, in accordance with amendments to the Constitution that entered into effect in 2006, and instead based its decision on a provision in the old Constitution that had been in effect when Yushchenko was elected president in December 2004.
Yesterday's vote came on the heels of speculation that Yushchenko was about to disband parliament and schedule early elections in a bid to unseat his key rival, PM Tymoshenko, ahead of the presidential vote. The president, though, can still proceed with his rumored intentions to call early elections as he expects to overturn the Oct. 25 election date in the Constitutional Court. Moreover, the idea of early Rada elections seems to find increasing support in the opposition Party of Regions (PoR), which is hoping to take advantage of Yushchenko's and Tymoshenko's sagging approval ratings. A senior PoR official publicly urged the president yesterday to disband parliament. This morning, PoR blocked the parliamentary speaker's seat demanding that the president and the government resign.
We don't think it will be an outwardly negative development if early parliamentary elections are held almost in conjunction with the presidential poll as there is an almost consensus view in the local political establishment that the future president will seek to disband parliament anyway to try to put together a more loyal coalition.
A recent opinion poll by the Razumkov Center (Feb. 27-Mar. 5) suggests opposition leader Viktor Yanukovych and PM Tymoshenko will be frontrunners in the future presidential race, with 19.5% and 17.9% of voter support, respectively. But the two may be challenged by 34-year-old ex-parliament speaker Arseniy Yatsenyuk, with 13.4%. The incumbent president is far behind with a 4% rating. Viktor Luhovyk 7-030409
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9. Moscow threatens to withhold $5bn loan if Russia not included in pipeline modernisation
bne, April 1, 2009
Tempers are still running high over Ukraine's proposal to modernise its pipeline network that provides the key link between Russian gas production and its main European customers.
Russian president Dmitry Medvedev said that Moscow may withhold a loan of $5bn requested by Kyiv if Russia is not included in the work of modernising the pipeline network. Kyiv is struggling to cover a gapping hole in its budget. After the IMF refused to give Kyiv the second tranche of a $16.4bn bailout loan in February, Kyiv has been asking countries around the world for help. Russia's Finance Ministry is one of those approached and says it is considering the application.
However, the loan talks have become victim of politics. If Ukraine continues dialogue with the European Union on reconstructing its gas transportation system without Russia, this could prompt Moscow to deny financial aid to Kyiv, Russian President Dmitry Medvedev said at a press conference following talks with German Chancellor Angela Merkel in Berlin on Tuesday, reports Interfax.
"If our Ukrainian partners saw fit to continue this dialogue without Russia, we would definitely make certain conclusions, and some of them have already been made," Medvedev said.
"I am talking about the postponement of the intergovernmental consultations between Russia and Ukraine and other decisions of which our Ukrainian partners are asking us," Medvedev said.
"Our Ukrainian partners are asking us of a lot of things, for instance, money. But how can we lend money in such a situation if we cannot reach an agreement on one of the most significant issues?" he said. "We will take all this into account," he said.
However Medvedev offered an olive branch too, saying Russia was willing to seek a gas transit deal to which Russia would be a party.
"You cannot divide a product that does not belong to you," Medvedev told a news conference in Berlin, in comments on the EU-Ukraine agreement on the planned modernization of the Ukrainian gas transit system.
"It was with surprise and some disappointment that we received this information, but this does not man that we are offended and sulking. We are open to more consultations on this subject," he said.
"A proper legal basis needs to be laid in order to prevent problems of this kind from causing difficulties in the future. This can be done in the form of a separate agreement, or the Energy Charter can be amended. By now Russia has prepared its proposals and will put them before our European and Ukrainian partners shortly," Medvedev said.
Ukrainian president Viktor Yushchenko also said that something must be done to help Naftogaz.
"We need to reconsider the so-called 'balanced' plan of Naftogaz," Yushchenko said in his annual address to the parliament in Kyiv on Tuesday. "The company is now in a very difficult situation. If we do not urgently reconsider the financial plan, the consequences will be very dramatic for the company," he said. -9-030409
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10. Ukraine Anti-crisis packaged
Timothy Ash, RBS, April 1, 2009
The Verkovna Rada (parliament) approved only two of the five reform bills put before parliament yesterday which were seen as being key to getting the IMF programme back on track. The five bills included:
Provision for a hike in excise taxes on tobacco to UAH100 per 1,00 cigarettes, which would have generated around UAH3.7bn in revenues over the period April thru December;
A hike in excise tax on alcoholic drinks;
Provision of a UAH7.7bn subsidy to the state-owned gas utility, Naftogaz, to cover the difference between the import price of gas and the price of gas sold domestically;
Two bills aimed at reforming the pension system, in effect cutting entitlement/indexation with the aim of slashing the pension fund deficit.
Parliament only approved the first two bills, with a vote of 240 out of 450 deputies in parliament. On the latter three bills, elements of President Yushchenko's OU-PSD block failed to back the ruling coalition of which it is supposed to be part.
This failure does have political connotations as Yushchenko's head of administration, Viktor Baloha, argued that the failure of the vote on the anti-crisis programme just reflected PM Tymoshenko's inability to maintain a viable coalition. He went on to argue that she should resign and allow for early parliamentary elections.
Further context herein is that President Yushchenko chose the middle of a deep economic crisis, with the government battling to get the IMF programme back on track, to present in his annual address to parliament, yet more proposals for constitutional reform, including the creation of a second parliamentary chamber. Most people would accept that Ukraine desperately needs constitutional reform to clarify the respective powers of the presidency, the executive and the legislature, but Yushchenko's timing was poor.
Yushchenko had, meanwhile, been calling on politicians to back an anti-crisis programme to get the IMF programme on track, albeit the fact that his supporters in OU-PSD (the block is split between a majority that back Tymoshenko, and the rump which back Yushchenko) failed to back the government on the full five-bill package just affirms that there are bigger political issues at stake here. Cynics would argue that with Yushchenko's popularity near all time lows, and facing a near impossible task of securing re-election in January 2010, he is seeking an exit route, via parliament. He perhaps sees the current knife edge vote over the anti-crisis programme as a means to leverage a quid pro quo of backing for his constitutional reform efforts.
The IMF appeared in understanding mode, issuing a press release that welcomed the hikes in excises, but signalled that it looked forward to seeing progress to reign in the deficit on the pension fund. The message was clearly that the Fund would not be returning to Kiev, to sign off on the second credit tranche disbursement of US$1.84bn, until parliament enacted the key pension reform bills.
Parliament is due to reconvene today to reconsider the anti-crisis bills. It is unclear how Yushchenko's supporters in parliament will proceed second town around, although the president has called on all political parties to pull together to ensure the IMF programme is put back on track; action speaks louder than words though.
Parliament's failure to approve the financing programme for Naftogaz is though clearly a blow to the state-owned energy company, as is Russia's comments y/day that suggests it is blowing luke-warm now over providing credit to Ukraine to fund gas imports over the next year. Ukraine had requested US$5bn in Russian loans to fund gas imports, but the signing of the Ukraine-EU gas agreement last week appears to have annoyed Moscow, which feels that it should be central to any such agreements. -10-030409
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11. Ukraine to injected $6bn into 10-15 largest banks
Galt &Taggart, Kyiv, April 1, 2009
Ukraine will offer the largest 10-15 banks UAH 44bn (US$ 5.7bn) from the state budget in recapitalization funds, Interfax reported, citing Deputy NBU Head Alexander Savchenko. He did not identify individual banks, but said the group will include systemic lenders with a large deposit base that are important to Ukraine's economy. The proposed capital injection, which represents 2-3% of Ukraine's GDP, reportedly has IMF support. The timeframe is tentative, but Savchenko said banks could receive funding within the month if the plan is approved this week. Danylo Spolsky -12-030409
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12. Ukraine may not get second tranche of IMF loan
Alfa, Russia, Wednesday, April 1, 2009
Today the Ukrainian parliament once again failed to vote to reduce the budget deficit and pension spending, which was a major requirement set by the IMF if they were to resume operations in Ukraine. As we expected, the coming elections will tie up these decisions in Parliament, and it will be IMF that is expected to be more flexible on issues of government spending, especially now that a policy of quantitative easing has been approved to finance the budget deficit in the US.
The delay to the IMF mission's return to Ukraine does not seem to be having an overly negative effect, as January and February trading balance data show that Ukraine's balance of payments has found its equilibrium. Today representatives of the NBU confirmed that its experts expect Ukraine's balance of payments in 2009 to be close to zero, or even positive, depending on the political situation. therefore, the first tranche of the IMF loan has done its job, while the provision of the second tranche does not look too urgent at the moment. Denis Shauruk -11-030409
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13. Alchevsk Steel [Buy; FV $0.018] continues to increase output
Dragon Capital, Kyiv
March 31, 2009
Alchevsk Steel plans to resume imports of iron ore from Russia in April, purchasing some 70 kt of the commodity, and increase pig iron production next month by 25% y-o-y to 320 kt (almost unchanged mo- m and 12% above February output). (Metal Courier) We expect the company to produce 4.1 Mt of steel in 2009 (-6% y-o-y). We maintain our positive view on Alchevsk Steel and reiterate our recommendation on the stock. Sergiy Gayda -13-030409
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14. EU's grain harvest to shrink 8.4% YoY in 2009/10
Sokrat, Ukraine, March 30, 2009
According to COCERAL, the national grain trade organization involving most of the European Union's 27 member states, the estimated harvest for the EU-27 will total 286.4 mln mt of grain in the 2009/10 marketing year. That is 8.4% or 24.2 mln mt less YoY than in the 2008/09 marketing year. In particular, the EU's soft wheat harvest will shrink 9.9% YoY to 128.3 mln mt, its barley harvest will decrease 7.4% YoY to 61.3 mln mt, and its corn harvest will slip 7.9% YoY to 56.4 mln mt. EU farmers are suffering from limited liquidity and have been forced to reduce their cultivated land by 3% YoY in the 2009/10 marketing year. Moreover, the average grain yield is estimated to shrink 5.2% YoY.
Our view: The EU is one of the main grain exporters in the world and a major competitor for Ukrainian traders. Moreover, 50% of the grain consumed by the EU in the 2008/09 marketing year was exported by Ukraine. We believe that the current market situation favors Ukraine's grain traders. Ukraine will be able to gain a more stable position on the global market and to increase grain exports to the EU. Moreover, according to the Ministry of Agriculture of Ukraine, 94% of spring crops are in rather good or satisfactory condition, which predisposes a good spring grain harvest. Moreover, we estimate them to be in the range of 38 mln mt to 47 mln mt. Grain exports could potentially reach 18.5-19 mln mt of grain in the 2009/10 marketing year.
Moreover, Ukraine could gain leadership in terms of barley exports in the 2009/10 marketing year. However, Ukraine's farmers are also suffering similar problems as their EU counterparts. Nevertheless, the cultivated area increased 6.6%YoY in the 2009/10 marketing year. Our concerns are mainly attributed to the harvest quality, as we believe the proportion of mill-quality wheat remains at a low level in the current marketing year. -14-030409
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15. Ukrnafta's gas price kept at $25/mcm
Rencap, Russia, Tuesday, March 31, 2009
Event: Ukranews reported yesterday (30 Mar) that on 26 Mar, Ukraine's National Commission for Electricity Regulation (NERC) extended until YE09 its 1Q09 decision to set the regulated price for Ukrnafta's gas at the 2008 level of UAH199.2/mcm ($25/mcm).
Action: The announcement is disappointing, in our view.
Rationale: The approved price level seems incredibly low to us, compared with Ukraine's recently announced 2Q09 import gas price of $280/mcm. It is even below the associated operating costs, which were estimated by Ukrnafta at UAH769/mcm ($98/mcm) for 2009. Ukrnafta has been protesting against the unfavourable pricing policy since 2005, so the gas price issue is not new to the market. However, we had hoped that in anticipation of the company's EGM (scheduled for 15 Apr, after six unsuccessful attempts) with 2006-2008 dividends on the agenda, the government could make a first step towards resolving the longstanding gas price conflict between the company's key private shareholder, Privat Group, and the state-controlled Naftogas of Ukraine. Unfortunately, this has not happened. Irina Elinevskaya -16-030409
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16. Time Warner will run CME in four years
Prague monitor, March 30, 2009
E15 reports that Time Warner, which earlier this month acquired a 31% stake in Nova TV owner CME, will gain control of the European firm in 2013.
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17. Motor Sich cancels 2008 dividends as profits sink
Dragon Capital, Kyiv, March 30, 2009
Friday's AGM of Motor Sich, a leading producer of aircraft and helicopter engines in the CIS, voted to pay no dividends for 2008 as the company's net income plummeted by 98% y-o-y to $0.7m due to F/X losses stemming from sharp hryvnia depreciation in 4Q08. (Company) The AGM also approved Motor Sich's 2008 financial results released earlier (please see our Daily from March 20). For 2009, the company projected 15% y-o-y output growth in volume terms and a 59% y-o-y increase in sales (presumably in UAH terms, which implies a 9% y-o-y decline in dollar revenues, to $352m). Last December, however, Motor Sich projected its 2009 sales at $450m (+17% y-o-y). Our current forecast envisages 2009 sales growth of 10% y-o-y to $424m but we may revise it based on the company's recent performance. Meanwhile, we maintain our positive view on the company and confirm our recommendation on the stock. Taisiya Shepetko -17-030409
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18. PAKKO to sell stake within 3 months
Galt &Taggart, Kyiv, March 30, 2009
Frankfurt Open Market-listed retailer PAKKO-Holding (5CBA GR) is in talks with investors to sell a company stake of undisclosed size within the next three months to raise funds, Interfax reported. PAKKO intends to use the attracted capital to increase its Western Ukrainian market share and facilitate earlier announced plans to open between seven and 15 new "Vopak" and "PAKKO" brand stores this year. Danylo Spolsky -18-030409
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19. Ukraine's gas price to hike 16% to US$ 148/tcm
Galt &Taggart, Kyiv, March 30, 2009
Belarus will pay an average US$ 148/tcm for Gazprom-imported natural gas in 2009, a 16% increase from the US$ 127.9/tcm paid last year ex-1Q08, according to an economic advisor of the Russian embassy in Belarus, as reported by Prime-Tass. Belarus had expected to pay US$ 210/tcm in 1Q09, tailing off towards end-2009. Oleg Gud -20-030409
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20. Retail Group targets US$ 50-100mn from equity sale
Galt &Taggart, Kyiv, March 30, 2009
Retail Group (PFTS: RTGR) is looking to raise between US$ 50mn and 100mn by selling an equity stake in the next three months, Interfax reported. The capital will be directed to service debt, which stood at US$ 150mn as of December 2008, and development. Five undisclosed companies are reportedly conducting due diligence. Danylo Spolsky -19-030409
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