Business news from Ukraine

Business news from Ukraine

UKRAINE RAISES GAS STOCKS IN UNDERGROUND STORAGE FACILITIES BY 45%

Ukraine has raised natural gas reserves in its underground storage facilities (UGS) by 3.362 billion cubic meters after the end of the heating season, PJSC Ukrtransgaz has said.
Thus, from April 8 to June 23 gas reserves in storage facilities grew by 45.2%, to 10.797 billion cubic meters from 7.435 billion cubic meters.
According to Interfax-Ukraine’s estimates, gas stocks on June 1-23 expanded by 1.231 billion cubic meters (53.54 million cubic meters per day), in May by 1.632 billion cubic meters (52.65 million cubic meters per day), April 9-30 by 500.84 million cubic meters (22.77 million cubic meters per day).
If the existing volumes of imports and current domestic production are preserved, the country will have about 11.2 billion cubic meters of reserves in storage facilities in July.
Ukrtransgaz, 100% owned by NJSC Naftogaz Ukrainy, operates the system of trunk gas pipelines and 12 underground gas storage facilities of the country with a total capacity of 31 billion cubic meters.

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UKRAINE’S STATE DEBT IN DOLLARS SHRINKS BY 1%

Ukraine’s aggregate state (direct) and government-guaranteed debt in May 2018 shrank by 1%, or $0.79 billion, to $76.26 billion, the Ukrainian Finance Ministry has said on its website.
The state debt estimated in the national currency, the hryvnia, declined by 1.4%, or UAH 27.97 billion, to UAH 1.993 trillion.

UKRAINE BOOSTS PIPE OUTPUT BY 10%

The major pipe enterprises of Ukraine in January-May 2018 boosted production of pipes by 10% compared to the same period last year, to 448,000 tonnes, including in May they manufactured 91,000 tonnes. The Ukrtruboprom association told Interfax-Ukraine that enterprises, which are members of the association, boosted production by 23.5% year-over-year, to 336,000 tonnes, including 72,000 tonnes made in May.
Khartsyzsk Pipe Plant (Donetsk region), located in the government uncontrolled zone, remained idle in January-May 2018, while it made 3,400 tonnes of pipes in January-May 2017.
Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in the period rose by 28.4% compared to January-May 2017, to 124,000 tonnes (26,400 tonnes in May 2018 alone), Interpipe Novomoskovsk Pipe Plant increased output by 16.7%, to 44,100 tonnes (10,400 tonnes in May), while Interpipe Niko Tube raised production by 30%, to 147,400 tonnes (30,900 tonnes in May).
Dnipropetrovsk Pipe decreased pipe production by 7.9%, to 9,300 tonnes, making 2,100 tonnes in May. Production at Centravis grew by 10.5%, being 8,400 tonnes of stainless pipes (1,800 tonnes in May).
Pipe production at Trubostal rose by 8.3% in the first five months, to 1,300 tonnes of pipes (200 tonnes in May 2018).
Mariupol Illich Steel Works, which is not a member of the association, reduced pipe production by 14.8%, to 50,500 tonnes (6,800 tonnes in May), while Kominmet saw an 18.8% decrease, to 61,700 tonnes (12,100 tonnes).
Luhansk Pipe Rolling Plant, created on the basis of Luhansk Pipe Plant, remained idle according to unofficial information.
As was reported, major pipe producers of Ukraine in 2017 boosted pipe production from ferrous metals by 23.5% from 2016, to 1,047,800 tonnes. Ukrtruboprom’s enterprises alone saw a 27.8% rise in output, to 705,500 tonnes.

UKRAINE’S STATE PROPERTY FUND CALLS TENDERS TO HIRE ADVISERS TO CONDUCT PRIVATIZATION

Ukraine’s State Property Fund (SPF) has called first six tenders to hire a privatization adviser to prepare the sale of six out of 22 enterprises approved by the Ukrainian government for privatization this year. In particular, tenders were called to hire advisers to sell 99.5667% of PJSC Odesa Port-Side Chemical Plant (OPZ) in Odesa region and 100% of Kyiv-based PJSC United Mining and Chemical Company (UMCC), the SPF said in announcements in the Vidomosti Pryvatyzatsii privatization bulletin on Monday.
Other four tenders will be called for advisers to sell 70.7016% of PrJSC Indar and 100% of PrJSC President Hotel (both are based in Kyiv), and two wholly state-owned enterprises: Krasnolymanska Coal Mining Company in the town of Rodynske, Donetsk region, and Kharkiv-based Electrotyazhmash Plant (ETM).
The deadline for Indar, President Hotel and OPZ is July 20 inclusively. The first stages of the tenders are scheduled for July 26, and the second stages for July 30.
Applicants for UMCC, Krasnolymanska and ETM are to send their bids before July 23. The tenders will be held in two phases: on July 27 and July 31.
In all cases, the fixed sum of an adviser’s fee is set at no more than 0.5% of an enterprise’s state-owned assets. In case of the sale of an asset, the size of the variable part is up to 2% of the value of the sold asset, it said.
As was reported, Ukraine’s Cabinet late in May 2018 published a list of large-sized enterprises subject to privatization this year. It includes 23 enterprises: five regional power distribution companies, Centrenergo, Turboatom, Zaporizhia Titanium and Magnesium Combine (ZTMC), and Sumykhimprom. Only an adviser on Centrenergo has been selected as of now. It is Ernst&Young, which on June 19 submitted its status report.

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