NEWS IN BRIEF

1999 Gas Supply Order

To Be Developed

Development of the draft order of natural gas supply for 1999 is almost complete. It stipulates participation of commercial structures in the Ukrainian gas market, Economic executive of the fuel and energy department of the Ministry of the Economy and member of the auction committee for natural gas sales Valery Kyryniachenko told UNIAN. According to him, the existence of the gas traders is considered to be essential in 1999. According to the draft, the national stock company Naftohaz Ukrainy should secure gas supply to consumers in the state budget sphere and among the population. There are three forms stipulated in 1999 for trading natural gas – auctions, direct contracts with wholesale suppliers, and through tenders.

NBU To Suspend Bank Refinancing

The National Bank of Ukraine intends to suspend refinancing of commercial banks on any mechanisms until the currency market is fully stabilized, UNIAN reports with reference to the Kommersant Daily. According to Ukrainian observers, the new NBU measures are intended to reduce the activity of commercial banks in the currency market. For over a month the NBU has been trying to maintain the liquidity of commercial banks at a minimum level, forcing them to sell hard currency. Presently, there is a $3 billion demand for hard currency on the Ukrainian market.

Foreign Agricultural Equipment

Will Not Be Bought

Prime Minister of Ukraine Valery Pustovoitenko reported that the government would not finance the purchase of agricultural equipment for domestic producers. According to him, first of all this relates to purchases under government guarantee. In addition, the government intends to introduce “additional customs control in the form of taxes” on foreign agricultural equipment imports. President Kuchma admitted at the meeting that it was a mistake to buy the equipment abroad instead of launching its domestic manufacturing. Minister of Industrial Policy Vasyl Hureyev reported that assembly lines for making domestic harvesters would be launched by the end of the year, Interfax-Ukraine reports.