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Archive for February 20th, 2009

International banks pledge $2 billion for Ukraine units, FT says

Posted by the Editor on February 20, 2009


News / 20 February 2009 | 17:30

International banks pledge $2 billion for Ukraine units, FT says

International banks are injecting $2bn of new capital into their subsidiaries in crisis-hit Ukraine, in a rare flash of good news for the troubled economies of central and eastern Europe.

Seventeen banks signed an agreement last month pledging to raise the capital in the wake of the International Monetary Fund’s $16.4bn (13bn, £11.7bn) package to support Kiev as it struggles with recession and difficulties with external financing.

Ten foreign-owned banks promised to stump up $2bn, and seven Ukrainian-controlled banks pledged a further $1bn, including capital contributions made since the country plunged into economic crisis last autumn.

But with central and east European markets in turmoil, political disputes in Kiev and debates raging in western Europe on supporting the eastern states, Ukrainian officials could not be sure banks would deliver on their pledges.

Erik Berglof, chief economist at the European Bank for Reconstruction and Development, the multilateral lender that is providing 500m to support Ukrainian banks, welcomed the foreign institutions’ moves. “It shows the problems in the region are manageable but they do have to be actively managed,” he said.

The remainder of Ukraine’s 170 banks will also be asked to increase capital, as required.

The Financial Times

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Government to pay for gas ahead of schedule

Posted by the Editor on February 20, 2009


News / 20 February 2009 | 16:40

Government to pay for gas ahead of schedule

Government to pay for gas ahead of schedule

The Government intends to pay for natural gas from the Russian Federation ahead of schedule in February. Prime Minister Yulia Tymoshenko declared during the general portback election meeting of the Association of Ukrainian Cities and Communities, Cabinet’s press office reported.

Tymoshenko called upon the mayors to spare no effort in paying for natural gas in time both on the part of the population and the institutions and organizations, “And, do your best to make Ukraine worthy and able to pay for gas”.

The Head of Government reminded that while signing the contracts of gas supply, Russia demanded a monthly up-front payment. According to her, the Government reached compromise and agreed, if Ukraine pays in time, the old system of calculations will remain, if Ukraine fails, the transfer to prepayment will take place. So, the Prime Minister stressed, it is necessary to exert every effort to pay for natural gas in time.  

ForUm

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Five killed in Ukrainian An-12 plane blaze in Egypt

Posted by the Editor on February 20, 2009


News / 20 February 2009 | 15:50

Five killed in Ukrainian An-12 plane blaze in Egypt

A Ukrainian An-12 cargo plane burst into flames on Friday as it tried to take off in south Egypt killing five crew members, the Egyptian Civil Aviation Authority head was quoted as saying by the MENA news agency.

Emad Salam said the Ukrainian cargo plane, en route from Uganda, landed at Luxor airport in southern Egypt to refuel. As the plane was preparing for take off it suddenly burst into flames on the runway.

However, according to other sources, the plane took off to a height of two or three meters (6.5-10 feet) before bursting into flames.

The KyivPost reported that the plane belonged to the South African-based Aerolift Company.

An accident commission is being set up to investigate the cause of the fire and both the plane’s black boxes have already been recovered, Egypt’s Civil Aviation Minister Ahmed Shafiq said.

“Black boxes from the crashed plane have already been recovered, they will be sent to the lab of Egypt’s aviation ministry,” the minister was quoted as saying by the MENA news agency, adding that Luxor airport was not to blame for the tragedy.

A source in the airport administration said that the An-12 had been forced to land at Luxor due to a fuel leak. The crew was aware of the leak, the source said, but made the decision to take off despite the possible risk.

According to Russian diplomatic sources, one of the five crew members was a Russian national, the others were from Ukraine and Belarus. The Ukrainian Foreign Ministry has confirmed that the dead crew comprised one Russian, two Ukrainians and two Belarusians.

All the bodies have been recovered and taken to hospitals in Luxor.

Incoming and outgoing flights at Luxor International Airport have not been disrupted.

ForUm

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Tymoshenko suggests introducing a post of Vice Prime Minister for Regional Policy

Posted by the Editor on February 20, 2009


News / 20 February 2009 | 15:00

Tymoshenko suggests introducing a post of Vice Prime Minister for Regional Policy

Prime Minister Yulia Tymoshenko suggests introducing a post of Vice Prime Minister for Regional Policy and Housing and Communal Service in the Cabinet. She declared this taking the floor at a general portback election meeting of the Association of Ukrainian Cities and communities, Government portal reported.

“I propose to nominate the worthiest, the most professional person who has a mayor’s experience, non-politicized, that it the most important. Nominate such candidature and I name him/her for the post of special Vice Prime Minister for Regional Policy and Housing and Communal Service,” Yulia Tymoshenko stressed.

The Prime Minister expressed confidence that this would boost cooperation between the Government and local authorities and added that she personally would back up the results of such cooperation, “I will do my best that your bills to be passed in the Verkhovna Rada and resolutions to be approved at the Government’s sitting”. 

ForUm

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Yekhanurov believes friendship between NATO and Russia will save Ukraine

Posted by the Editor on February 20, 2009


News / 20 February 2009 | 14:10

Yekhanurov believes friendship between NATO and Russia will save Ukraine

Yekhanurov believes friendship between NATO and Russia will save Ukraine

Defense Minister of Ukraine Yuri Yekhanurov believes that normalization of relations between NATO and Russia is a key factor in stabilization of the political situation in Ukraine. He said at the session of Ukraine-NATO commission being held in Poland.

Yekhanurov noted that after the implementation of annual national programs a new format of relations with NATO was formed, strategic goal of which is obtaining of NATO membership. At the same time the Defense Minister pointed out that this work must be done under favorable external and internal conditions.

Yekhanutov also told his colleagues from NATO that normalization of relations between NATO and Russia is a key factor in stabilization of the political situation in Ukraine and will assist in overcoming the crisis in Ukrainian economy.

“Under the conditions of severe political and economic pressure Ukraine’s course regarding obtaining membership in European institutions still should not be doubted,” Yekhanurov stated.

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Hryvnia will burst like a balloon?

Posted by the Editor on February 20, 2009


News / 20 February 2009 | 13:20

Hryvnia will burst like a balloon?

MP from the Party of Regions Mykhilo Chechetov believes that dollar will cost 15 hryvnias by summer. He told parliamentary journalists, ForUm’s correspondent reported.

“I think that devaluation of hryvnia will continue, as it is impossible to hold the rate of the national currency without growth of real economy sector,” the MP explained.

He reminded that “dollar can be temporary supported by credits.” “When the real economy sector develops it supports the national currency, and the latter does not devaluate. But if we just take loans while the economy is going down the national currency will turn into a balloon, which blows up, becomes big, but then bursts,” Chechetov underlined.

ForUm

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Foreign Minister’s statements regarding Viktor Chernomyrdin correspond with international law – President

Posted by the Editor on February 20, 2009


News / 20 February 2009 | 11:40

Foreign Minister's statements regarding Viktor Chernomyrdin correspond with international law - President

Foreign Minister’s statements regarding Viktor Chernomyrdin correspond with international law – President

Speaking at his press conference after the visit to the 96th Anti-Aircraft Artillery Brigade located in Kyiv region, President Victor Yushchenko said that Foreign Minister Volodymyr Ohryzko’s statements regarding Russian Ambassador to Ukraine Viktor Chernomyrdin do not contradict international law.

“It is not accepted by international law that in the country of residence ambassadors said things that may be inappropriately perceived by nation, government or people as the whole”, – said Victor Yushchenko. He also emphasized that in this case the Foreign Minister “stood up for dignity and status of our country”.

At the same time President Yushchenko expressed assurance that Viktor Chernomyrdin did not have intention to harm bilateral relations between Ukraine and Russia. “We are two large European states and we must be careful about our relations”, – said Victor Yushchenko adding also that first of all the diplomats should refrain from emotional statements.

ForUm

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Ukraine may supply food world over – EBRD

Posted by the Editor on February 20, 2009


News / 20 February 2009 | 10:50

Ukraine may supply food world over – EBRD

Ukraine may become a world-level supplier of food, European Bank for Reconstruction and Development President Tomas Mirow told a press conference in Kyiv Thursday, Ukrinform reported.

Commenting the perspectives of investing this country’s agrarian sector, EBRD Director for Ukraine Andre Kuusvek noted that the bank is considering prospects for participation in the Ukrainian government’s project for the creation of wholesale agricultural markets.

Earlier, Ukrainian concern Bears Food Ingredients and the National Agricultural Chamber of Ukraine offered the EBRD participation in the project for the creation of seven wholesale agrarian markets. They must be built before 2014. It is planned that the turnover of those markets will reach about USD 3 billion. The project must be redeemed in seven or ten years.

The Agricultural Policy Ministry of Ukraine intends to complete the development of the state target program for the creation of wholesale agricultural markets by April 2009. One of the variants provides for creation of a wholesale market in each of Ukraine’s 24 regions, and the Autonomous Republic of Crimea. The project of Bears Food Ingredients and the National Agricultural Chamber may become a component part of the state program.

ForUm

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