Ukrainian media outlets have announced that the United States has granted Ukraine market economy status.
System Capital Management (SCM) announced that they were considering participating in Ukrtelecom’s (UTEL: Under Review) privatization tender. SCM has been rapidly constructing a telecom empire by consolidating small mobile and fixed line operators.
Ukraine’s total mobile subscriber base reached 31.2 mln at the end of January, which is 66.5% of Ukrainian population. Kyivstar (14.3 mln) and UMC (13.9 mln) are the two top companies. The third operator Astelit has increased its market share from 0% year ago to 8.4%.
The National Electricity Regulation Commission (NERC) has increased the limit on gas prices for industrial consumers by 29.8% to USD 107/ths cm (excl. VAT). The new price will take effect on February 20. This price is supposed to cover Naftogaz’s losses from selling gas at under its value in January.
President Yushchenko’s Our Ukraine Party announced that it had formed a working group with the Yulia Tymoshenko Block, Socialist Party, The Pora-Reform & Order Block and the Kostenko & Pliusch Block to draft an agreement on making a parliamentary coalition after the elections. All these parties were once part of the “People’s Power” coalition that brought Yushchenko to power last year.
President Viktor Yushchenko said at a press conference yesterday that he expects the USA to grant Ukraine market economy status in the next few weeks. In addition news reports out of Washington stated that the U.S. has sent some top members from the Department of Commerce to Kyiv to meet with Ukrainian officials and prepare the documents.
Ukraine’s Economic Minister Arseniy Yatsenyuk announced yesterday that Ukraine had signed mutual market access agreements with Honduras and the Dominican Republic. Concorde Capital: In its meeting with WTO members in Geneva Ukraine failed to reach agreements with the USA and Australia but was able to overcome minor squabbles Honduras and the Dominican Republic. In addition to needing to sign agreements with five countries including the United States and Australia, Ukraine’s Rada needs to pass several laws putting the country’s legislation in line with WTO standards before in can be admitted into the organization. Yatsenyuk said he believes Ukraine will join the WTO this summer.
The issue is on the agenda of the company’s EGM on March 3. Sun Interbrew plans to issue 2,915 new shares at USD 0.002 par.
Luhanskoblenergo (LOEN:N/A) was de-listed from the PFTS.
According to the National Bank (NBU), in 2006 Ukraine’s current account deficit grew to USD 1.6 bln or 1.5% of GDP.
Foreign Direct Investment in Ukraine totaled USD 5.3 bln in 2006, an increase of 30% yoy according to the National Bank statistics.
Chernigiv Khimvolokno (CHIM: BUY) reported a USD 2.4 mln net loss for 2006, according to Ukrainian accounting standards.
Novomoskovsk Pipe (NVTR: BUY) reported net profits of roughly USD 8.4 mln in 2006 an increase of nearly six times yoy.
Kominmet (DMZK: HOLD) has announced plans to approve a 24% share capital increase at its April 3 AGM.
Telenor reported results of the largest Ukrainian mobile operator Kyivstar: net revenue USD 1.7 bln (51% growth yoy – much higher than Telenor group’s 37%), EBITDA USD 1.0 bln (61% growth yoy, compared to Telenor group’s 40%).