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25.02.2008
(The news article of February 22 has been updated with comments from NBU Council Chairman Petro Poroshenko)
The National Bank of Ukraine has proposed that the Cabinet of Ministers raise this year's annual inflation forecast from 9.6% to 12%.
First Deputy Prime Minister Oleksandr Turchynov announced this to journalists.
"The National Bank is proposing raising the rate of inflation to 12%. They have submitted such a proposal," he said.
However, he stressed that the Cabinet of Ministers was not intending to review its 9.6% annual inflation forecast.
"Today, I think that we will retain 9.6, but we will reach agreement with the National Bank on reaching a joint resolution so that the National Bank can also assume responsibility for those obligations that the government assumed," Turchynov said.
National Bank of Ukraine Council Chairman Petro Poroshenko confirmed to Ukrainian News that National Bank of Ukraine Governor Volodymyr Stelmakh on Friday, February 22, proposed the inflation forecast of 12% as a shared position, as a goal, which could be achieved as a result of coordinated actions of the government and the NBU.
 22.02.2008
Fitch Ratings said it has affirmed Axa and BNP Paribas' Ukraine-based unit JSCIB UkrSibbank's (UkrSib) foreign currency long-term issuer default rating (IDR) at 'BB-' and long-term local currency IDR at 'BB' with a positive outlook. Fitch said the bank's ratings are driven by the possibility of support from BNP Paribas -- rated 'AA' with a stable outlook -- which owns a controlling stake in the bank. The ratings also reflect the relatively high degree of concentration in the bank's loan book, risks associated with rapid credit growth and the high dependence on shareholder funding.
21.02.2008
Producers of meat and meat products are concerned by an increase in illegal importation of meat and meat raw materials into Ukraine.
Oleksii Bakumenko, the president of the Ukrainian Association of Poultry Farmers announced this to journalist.
Bakumenko said that 4,400 tons of meat and meat products were imported into Ukraine from the start of this year to February 19, including 2,840 tons intended for a Dnipropetrovsk-based food company, 234 tons intended for a Cherkasy-based company, and 540 tons intended for an Artemivsk-based meat plant.
In particular, according to him, a cargo weighing 1,495 tons from Belgium that was intended for the Dnipropetrovsk-based food company was detained at the Lviv customs on February 7.
He said that the declaration for this cargo stated that it consisted of bones (code 05) and therefore was not subject to customs duty and was subject to only value-added tax based on its customs value of UAH 0.35 per kilogram.
However, according to him, laboratory tests for quality and safety showed that the cargo consisted of poultry meat and minced meat.
Moreover, Bakumenko said that the tests showed the meat carried various infections and that it was uncovered that the meat was unfit for consumption and intended for destruction.
20.02.2008
The trade union of employees of the coal industry has said that government agencies, the Coal Industry Ministry, and the heads of coal enterprises are not taking sufficient measures to ensure safety at enterprises in the coal industry.
The press service of the trade union announced this in a statement, a text of which Ukrainian News obtained.
According to the trade union, about 6,950 people were injured at Ukrainian coal mines in 2007, including 268 with fatal injuries.
Moreover, according to the trade union, 14 accidents were registered at coal mines from January 1 to February 11 this year -- including five underground fires, two coal-duct explosions, and one rock collapse -- as a result of which seven people were fatally injured.
19.02.2008
TOKYO (AP) -- Toshiba may pull the plug on its high-definition DVD format but no decision has been made, the Japanese electronics maker said in a statement Monday.
Toshiba Corp. has started a review of its HD DVD business, it said, amid reports by the Wall Street Journal and Kyodo News agency that Toshiba was considering pulling out after losing ground to the competing Blu-ray disc format.
The Journal, citing people familiar with the situation, reported Sunday that the company is likely to pull out early this week.
A Toshiba pullout would signal the almost certain defeat of HD DVD to Blu-ray, which is backed by Sony Corp (SNE)., five major Hollywood movie studios and others.
Only one format has been expected to emerge as the winner, much like VHS trumped Sony's Betamax in the video format battle of the 1980s.
18.02.2008
The European Commission sees the reconstruction of the Ukrainian gas transport system as necessary.
European Commissioner for External Relations and European Neighborhood Policy Benita Ferrero-Waldner gave the position of the European Commission to the press.
She said the European Commission was working jointly with the Ukrainian side to organize a conference in the autumn to raise funds for the reconstruction of the Ukrainian gas transport system.
Ferrero-Waldner said the European Commission welcomed the agreement between Ukrainian President Viktor Yuschenko and Russian President Vladimir Putin in gas issues.
As Ukrainian News earlier reported, the Fuel and Energy Ministry is intending to create a fund to accumulate assets to be channeled to the modernization of the Ukrainian gas transport system
Ukraine is intending to raise EUR 2.5 billion to hold modernization of its gas and oil transport system until 2013.
15.02.2008
Ukraine sees Poland's investments in Ukrainian economics risen in 2007. Ukrainian News has learned this from the Foreign Affairs Ministry press service. On February 11 Ukrainian Ambassador to Poland Oleksandr Motsyk met with Undersecretary of State at the Polish Ministry of Economy Marcin Korolec. At the meeting the talkers pointed to a tangible progress in growth of Polish investments in Ukraine's economy: for three quarters of 2007 their amount increased by USD 280 million, this being the most dynamically growing indicator in the Ukraine - Poland investment relations from the moment Ukraine gained its independence.
13.02.2008
Russian gas monopolist Gazprom has agreed to purchase of natural gas by NJSC Naftohaz Ukrainy directly from RosUkrEnergo at USD 179.5 per 1,000 cubic meters, bypassing Ukrhaz-Energo joint venture.
Naftohaz Ukrainy CEO Oleh Dubyna told this in an interview with the Fifth Channel.
"We have the decision to sign an agreement with RosUkrEnergo on gas supplies at USD 179.5 starting form January 1, 2008, because today we have problems on closing gas volumes in Russia as well as Ukraine," he said.
Dubina did not specify the term of the contract.
When asked whether RosUkrEnergo will be preserved in the gas supply scheme, he said "Yes, for now."
Naftohaz Ukrainy head promised to provide more extended information on all the agreements in the gas sector between Ukraine and Russia after the respective talks with Gazprom and consultations with the Cabinet of Ministers.
12.02.2008
Ukrainian mobile operator Kyivstar reached a total of 23.872 million subscribers as of 1 February, some 270,000 more than on 1 January. The number of prepaid customers rose to 12.58 million from 12.37 million at the start of the year, and Djuice subscriptions increased to 9.22 million from 9.19 million a month earlier.
11.02.2008
The Wall Street Journal has reported that Yahoo plans to reject Microsoft's takeover bid, saying it 'massively undervalues' the company.
(Fortune) -- Yahoo plans to reject Microsoft's $44.6 billion takeover bid, the Wall Street Journal reported Saturday, citing a person familiar with the situation.
The source, according to the paper, said Yahoo's board believes Microsoft's offer of $31 per share "massively undervalues" the company and does not account for the risk that a deal could be blocked by regulators.
The source also said that the company is unlikely to consider any offer below $40 per share, according to the paper. Such a premium would increase the value of the takeover offer by $12 billion.
Microsoft would not comment to Fortune on the report. Yahoo did not return a call seeking comment.
On Feb. 1, Microsoft (MSFT, Fortune 500) made an unsolicited $44.6 billion cash and stock bid for Yahoo (YHOO, Fortune 500). The bid represented a 62% premium over Yahoo stock price one day earlier.
A Microsoft-Yahoo combination would create a powerful number two player in the online search business, which Google commands. It would also be one of the biggest tech deals in years, on a par with Hewlett-Packard's $25 billion acquisition of Compaq in 2002.
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