Ukraine’s forex reserves in May 2018 narrowed by 1.6%, reaching $18.12 million as of June 1, 2018, the National Bank of Ukraine (NBU) has published the preliminary data on its website. The central bank said that the reduction of the forex reserves is linked to payments on state debt. “Some $455.1 million was paid to the International Monetary Fund (IMF), $214.4 million to service and pay the government’s debt in foreign currency, including $126.2 million on government domestic loan bonds and $18.5 million on sovereign bonds,” the NBU said.
The main source of expanding the reserves in May was the purchase of foreign currency in the interbank market. According to the NBU, high prices for Ukrainian exports (metals, ore and grain) contributed to stable currency inflows, as well as an increase in the supply from banks, which the central bank expanded from the beginning of April to conduct its own operations with foreign currency on the interbank market.
In general, the National Bank in May bought out $181.2 million in the interbank market. All purchases were made in the form of interventions at the best rate.
In addition, last month, the reserves received $272.3 million and EUR 64.6 million from the placement of government domestic loan bonds denominated in foreign currency by the government.
The volume of reserves was also affected by the revaluation of financial tools (change in market value and the exchange rate of the hryvnia against foreign currencies) by $162.3 million.
In general, as of June 1, 2018, the volume of international reserves covers 3.2 months of future imports and it is sufficient to fulfill Ukraine’s obligations and current operations of the government and the National Bank.
The share of U.S. dollars of Ukraine’s forex reserves by late 2017 was 71%, the National Bank of Ukraine (NBU) has said in an annual report for 2017.
“The National Bank, like most central banks in the world, preferred investing reserves in U.S. Treasury bonds. The foreign exchange structure of forex reserves by the end of the year was as follows: 71% – U.S. dollar, 12% – euros, 4% – Chinese yuan, 3% – British pound sterling, 6% – gold, 4% – other currencies,” the NBU said in the report.
In addition, according to the NBU report, in the structure of forex reserves in terms of tools 78% accounted for bonds, 16% – for funds in banks, and 6% – for gold, including 53% of bonds in the structure of reserves were public, 40% – quasi-public, 7% – of issuers of the financial sector.
Kyiv City State Administration together with the USAID will work out a plan for the modernization of the heat supply system of the capital, Deputy Head of Kyiv City State Administration Petro Panteleyev has told reporters in Kyiv. “We, together with USAID and experts, have begun work on a new heat supply scheme for the city, which will show what first of all we need to invest in,” he said.
Panteleyev added this summer Kyivteploenergo will carry out work to eliminate the problems identified in the process of hydraulic testing of the heating systems, it is not planned to implement major projects for the relocation of networks.
As reported, previously the capital completed the first stage of accepting the city’s heat and power complex from Kyivenergo, the transfer of personnel to municipal company Kyivteploenergo
HEAT SUPPLY SYSTEM MODERNIZATION, KYIV ADMINISTRATION, USAID
Avangard agroholding, the largest eggs producer in Ukraine, in January-March 2018 saw $11.404 million of net loss, which is 2.1 times more than a year ago ($5.342 million).
According to a company report posted on the London Stock Exchange’s website, consolidated revenue grew by 21%, to $41.099 million and earnings before interest, taxes, depreciation and amortization (EBITDA) were negative being $9.058 compared with $0.1 million in 2017. “Our gross profit was negatively affected by two main factors: an increase in domestic prices for key feed components (grain and oil crops), accounting for c.68% of the company’s cost of sales of shell eggs, along with weak prices for dry egg products in both Ukraine and globally,” the company said, citing Avangard CEO Nataliya Vasylyuk.
She said that the growth of consolidated revenue in Q1 2018 is linked to large exports volumes of shell eggs and dry egg products.
Gross loss in Q1 2018 more than doubled, to $3.6 million. Operating loss grew 3.5-fold, to $12.8 million.
As at March 31, 2018, the total poultry flock amounted to 13.3 million heads, up by 40% compared to 9.5 million heads at December 31, 2017 (March 31, 2017: 14.0 million heads); whilst the number of laying hens remained flat at 9.3 million heads compared to year end (March 31, 2017: 10.6 million laying hens).
In Q1 2018, the production volume of shell eggs rose by 39% year-over-year to 644 million units (Q1 2017: 462 million units) due to the replenishment of the laying flock during 2017, which resulted in the flock’s greater productivity. Sales grew six-fold, to 200 million units.
In the reporting period, the share of export sales reached 41% (Q1 2017: 8%), with the Company exporting shell eggs to 15 countries in the Middle East and North Africa (MENA), Sub-Saharan Africa, Asia and the CIS region.
In Q1 2018, the company increased the output of dry egg products by 68% year-over-year to 1,839 tonnes. In Q1 2018, sales of dry egg products increased by39% year-over-year to 1,651 tonnes. The export of dry egg products rose by 27% year-over-year to 1,413 tonnes.
Privatization of small assets that are not of strategic importance for the Ukrainian economy will begin through the ProZorro system in June, Prime Minister of Ukraine Volodymyr Groysman has said. “I believe that privatization is the fund-raising for industry. This month, a new formula for the sale of small enterprises – through ProZorro – starts openly, publicly, without abuse,” the press service of the government quoted Groysman as saying. According to him, large, strategically important assets will be kept in state property, and those where it is possible to raise capital for updating technologies and multiplying jobs will be made ready with the help of well-known world advisers.
“This practice was carried out by countries with a high standard of living. And we, unfortunately, remained with a bunch of problems that now need to be resolved,” Groysman said.
Earlier, First Deputy Minister for Economic Development and Trade Maksym Nefyodov said that the State Property Fund (SPF) of Ukraine had approved a list of more than 600 small-scale privatization facilities that are subject to privatization in 2018. The first auctions can be announced at the end of June.
