EAVEX Weekly

January 13, 2020

Kyiv-listed Ukrainian stocks started the new year on a positive note, rising after the long-awaited deal with Russia regarding a new 5-year natural gas transit contract for 2020-2024. Preliminary estimates said that the country’s economy will receive benefits of near UAH 150bn (USD 6.2bn) from the deal in addition to the direct revenues from pipeline transit services for Gazprom. The agreement foresees the transit of at least 65bn cubic meters of Russian gas in 2020, and USD 40bn cu-m per annum thereafter. Payment for these volumes is guaranteed even in case of less pumping through the Ukrainian pipeline system. The PFTS index edged up 0.6% last week to close at 512 points. Raiffeisen Bank Aval (BAVL) was the growth leader, advancing by 4.0% to 32.00 kopecks per share. CentrEnergo (CEEN) was unchanged at UAH 9.26 while DonbasEnergo (DOEN) slipped 1.1% to UAH 25.00.