April GDP Up 3.5%.

According to Prime Minister Yurii Yekhanurov, Ukraine’s GDP grew by 3.5% yoy in April. In January-April cumulative GDP growth was 2.7% yoy compared to 5.0% during the first four months of 2005. Concorde Capital: One of the most important retractors for last’s year GDP growth, construction, posted 6.7% growth over 4M06 (-5.6% in 4M05), a positive sign suggesting the revival of investment activity. Trade, as well, spurred by its retail component, grew by 4.2% yoy during January-April vs. 0.8% last year. However the expected further increase in gas prices will negatively affect Ukraine’s steel and chemical sectors, containing GDP growth. We maintain our GDP growth forecast in 2006 at 3.5%.