EAVEX Weekly

November 28, 2017

Kyiv-listed stocks continued to move in slow motion last week, with quotes seeing only marginal gains despite generally positive domestic macroeconomic statistics and bullish external sentiments. UkrStat reported that retail sales were up by 4.2% YoY in October while the construction sector demonstrated growth of 13% YoY. In the Ukrainian reform agenda news, the government replaced the supervisory board of the country’s state-owned energy giant NaftoGaz. The move was welcomed by the European Bank for Reconstruction and Development (EBRD), which is one of the key financial backers of NaftoGaz. The EBRD provided a three-year USD 300mn revolving loan facility to help the company finance its natgas import purchases. The new supervisory board includes independent professionals from the UK, US, Canada and France, who will have their hands full trying to increase the company’s transparency.