Business news from Ukraine

UKRZALIZNYTSIA STARTS SELLING SCRAP METAL VIA PROZORRO.SALES – ECONOMY MINISTRY

JSC Ukrzaliznytsia has put up for sale four lots of scrap ferrous metal with the total starting price of UAH 260 million at the platform of state-owned enterprise (SOE) ProZorro.Sales.
The Economic Development and Trade Ministry of Ukraine said in a Wednesday press release that the auction is scheduled for January 11, 2019. Bids can be submitted before January 10.
Ukrzaliznytsia started selling its assets via the ProZorro.Sales platform in pursuance of government resolution No. 1054 dated November 22, 2017.
“These are the first lots for the sale of Ukrzaliznytsia’s assets, which appeared in the ProZorro.Sales system, and immediately the large quantities of a strategically important resource for metallurgists – scrap metal. This is a really important precedent, since Ukrzaliznytsia is the largest owner of scrap metal in Ukraine. And now the company can carry out its sales at the market price set during the bidding through the ProZorro.Sales system,” Deputy Economic Development and Trade Minister Maksym Nefyodov said.
In turn, acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said that the company sees several positive aspects in this event.
“Firstly, the sale of scrap metal from railways is our help to the domestic metallurgical industry. After all, for these first tenders, Ukrzaliznytsia put more scrap metal than Ukrainian metallurgists imported this year up for sale. However, the main thing is that using scrap metal, for the first time Ukrzaliznytsia has made the way envisaged in the rules of managing property that the government approved and brought to us. For us, this is now an effective mechanism for effectively managing the property of the company to increase its earning power and improve the customer service,” he said.

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RADA COMMITTEE HEAD VIKTOR HALASIUK ADVOCATES INVESTIGATION INTO 25% RISE IN IMPORTS OF METAL

Chairman of the parliamentary committee for industrial policy and entrepreneurship (Deputy Head of the Liashko Radical Party for Economic Policy) MP Viktor Halasiuk has said that a special investigation into growth of imports of ferrous metals to Ukraine by 25% should be conducted and he advocates the introduction of safeguard measures for the supplies of ferrous metals from China, Turkey, Russia and other countries.
“The Radical Party demands from the government and the Ministry of Economy to immediately conduct a special investigation into the unprecedented 25% growth this year in imports of ferrous metals and products from Ukraine. In addition, the people’s deputies insist on the introduction of preventive measures to protect Ukrainian metallurgy from predatory imports from China, Turkey , Russia and other countries,” the industrial policy committee said in a press release of with reference to Halasiuk.
According to him, the closure of the largest global markets and the intensification of the struggle for existing sales markets for metal products is a real threat to the Ukrainian industry and economy. At the same time, imports of ferrous metals in Ukraine have already grown by 25%, therefore, hundreds of thousands of jobs in the mining and metallurgy sector and related industries are under attack.
“We demand urgent measures to prevent the growth of imports of metal products from China, Turkey, the Russian Federation and other countries that are fiercely fighting for new markets for their products. It is also important to lobby for access of Ukrainian metal products to foreign markets, including through the export credit agency,” Halasiuk said, stressing that the United States, Canada, the EU, China, EurAsEC, Turkey, some African countries and others actively protect the domestic market of metal products from imports, increasing imports duties by 25% and more.
“Governments of the world’s largest economies are taking all possible and impossible measures to protect their own producers of metal and metal products,” he said.

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RADA COMMITTEE HEAD VIKTOR HALASIUK ADVOCATES INVESTIGATION INTO 25% RISE IN IMPORTS OF METAL

Chairman of the parliamentary committee for industrial policy and entrepreneurship (Deputy Head of the Liashko Radical Party for Economic Policy) MP Viktor Halasiuk has said that a special investigation into growth of imports of ferrous metals to Ukraine by 25% should be conducted and he advocates the introduction of safeguard measures for the supplies of ferrous metals from China, Turkey, Russia and other countries.
“The Radical Party demands from the government and the Ministry of Economy to immediately conduct a special investigation into the unprecedented 25% growth this year in imports of ferrous metals and products from Ukraine. In addition, the people’s deputies insist on the introduction of preventive measures to protect Ukrainian metallurgy from predatory imports from China, Turkey , Russia and other countries,” the industrial policy committee said in a press release of with reference to Halasiuk.
According to him, the closure of the largest global markets and the intensification of the struggle for existing sales markets for metal products is a real threat to the Ukrainian industry and economy. At the same time, imports of ferrous metals in Ukraine have already grown by 25%, therefore, hundreds of thousands of jobs in the mining and metallurgy sector and related industries are under attack.
“We demand urgent measures to prevent the growth of imports of metal products from China, Turkey, the Russian Federation and other countries that are fiercely fighting for new markets for their products. It is also important to lobby for access of Ukrainian metal products to foreign markets, including through the export credit agency,” Halasiuk said, stressing that the United States, Canada, the EU, China, EurAsEC, Turkey, some African countries and others actively protect the domestic market of metal products from imports, increasing imports duties by 25% and more.
“Governments of the world’s largest economies are taking all possible and impossible measures to protect their own producers of metal and metal products,” he said.

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MINING AND METAL GROUP METINVEST PLACES EUROBONDS

Metinvest mining and metal group has placed eurobonds under the 2012 eurobond refinancing program and pre-export financing facility ((PXF-financing): $825 million bonds due on April 23, 2023 and $525 million bonds due on April 23, 2026. According to information in the Bloomberg system, five-year bonds were placed at 98.986% of their face value. Taking into account the coupon of 7.75%, yield for them is 8% per annum.
The eight year bonds were placed at 98.583% of their face value. Taking into account the coupon of 8.5%, yield for them is 8.75% per annum.
As reported, on March 19 Metinvest offered the holders of eurobonds circulating in the market, the total nominal volume of which is $1.187 billion, to redeem the securities ahead of schedule.
The group at the initial stage of the offer received proposals for the buyback of eurobonds for $1.068 billion. In addition, the holders of eurobonds worth $1.149 billion agreed to amend the terms of their circulation.
The deadline for applications for redemption expires at 16:00 London time on April 19, 2018.
Metinvest also reported on achieving agreement with the creditors, who provided PXF-financing, on the revision of the terms of loans, including their extension.
Synchronously the group announced the issue of new bonds.

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