Ukraine has gas but lost air connection to Moscow

(Rob Lee, CC BY-ND)

Everyone wants to sell gas to Ukraine.

Not only growth accelerates in Czech Republic.

Bulgarian FinMin expects budget surplus.

Hungary’s debt reached HUF25,878bn.


After Ukrainian government announced on September 25th that it puts ban on flights of Russian airlines to the country, Aeroflot informed it cancels its sales on airline tickets for the routes Moscow-Kyiv, Moscow-Odesa and St. Petersburg-Kyiv. The airline would stop selling tickets on October 25th. So if you’ve already bought a ticket for a flight along one of the routes mentioned above scheduled after October 25th, you will get refund.


After Ukraine’s Naftogaz announced it would hold a tender to buy natural gas on European market, all key European traders became interested in it. Ukrainian Deputy Finance Minister Artem Shevalev wrote on his Facebook page: “All key European traders are participating in the tender process under the EBRD rules, where re-qualification was started last week”. The re-qualification for the tender was announced on September 18th and will last until October 2nd 2015.

The European Bank for Reconstruction and Development will lend Naftogaz Ukrainy USD300m so that the company would buy natural gas on European markets and fill the storage before winter season. That will support diversification of suppliers and delivery routes. The loan is closely connected with the Naftogaz project of upgrading and repairing a part of its gas transmission system – the western part of Urengoy-Pomary-Uzhgorod pipeline. The memorandum of agreement was signed between EBRD and Ukraine in 2014. It is also connected with a plan for corporate governance at Naftogaz, being now implemented with the help of the World Bank.

The loan from EBRD is guaranteed by the government. It will unblock another loan – from the World Bank (of USD500m). The total financing needs to get through winter season are USD1.3bn. The total commitment of EBRD in Ukraine is (as for September 1st 2015): EUR11bn. It helps finance 346 projects throughout the country.


>>And more

Czech Republic

As we mentioned on Wednesday, Czech Republic improved its rate growth to 4.6 percent in Q2 (which is better than previously estimated 4.4 percent). And it’s the highest growth since 2007! But the Czech Statistical Office revealed more details describing the situation of Czech economy. Company profitability is up, corporate investments are increasing and so are average wages (in real terms are up by 2.5 percent). Households are saving more money than ever before. Radio Praha aired an interesting interview with Jan Bureš, an economist of Era Bank, who comments on those results. “Looking at the figures, it is worth mentioning that the growth is broad based. That means that it is not just driven by one factor, such as in the past it used to be export-driven growth. These days it is more balanced. Looking at the contributions, we see both positive contributions coming from the domestic consumption of households, from the government sector, and we have a very growth in investments and meanwhile the export-oriented sector is still doing well. So almost all the sectors are still contributing positively to the GDP dynamic and that is pretty positive”, he said. He predicts that the Czech growth is going to rely more on household consumption. And what are other forecasts and predictions?=



The Bulgarian Finance Ministry expects a budget surplus of BGN627m at the end of September 2015. This is about 0.7 per cent of the country’s forecasted GDP and it means an improvement of 2.5 percentage points compared to the same period last year. The main causes of budget surplus are higher revenues and grants. Bulgaria is running a Consolidated Fiscal Program which aim is to increase revenues and lower expenditures. Revenues and grants of the period January-September15th, 2015 are expected to be above BGN24.1bn, which would be up by 12 per cent compared to the same period in 2014. The expenditures, including the Bulgarian contribution to the EU budget, are to be slightly over BGN23.5bn.

Until October 3rd, 2015 each member state of European Union has to declare whether the country wants or not growing GM products. This is regulated by Directive 2001/18/E. Bulgarian Agriculture Ministry informed that its crops will remain free from genetically modified crops. The ban will include eight varieties of maize, one variety of soya beans and one variety of carnations. The letters has just been send to Brussels. Bulgaria ensures no GM products would be grown in Bulgaria.



Hungarian gross consolidated debt, calculated in line with Maastricht methodology, reached 79.6 per cent of GDP at the end of the Q2 2015, the National Bank of Hungary (MNB) confirmed.In nominal terms, it’s HUF25,878bn. Net liabilities of the general government sector amounted to HUF22,897bn or 70.4 per cent of GDP in the same period. The net general government financing requirement has reached HUF330bn or 1.0 per cent of GDP in the four quarters to Q2. Net lending of households reached 8.0 per cent of GDP and net lending of non-financial companies 2.5 per cent during the period.


What’s up in indexes?

Nothing special happened on stock exchanges on Thursday. Baltics increased while Ukraine was still falling down.

BUX index (of the Budapest Stock Exchange) grew on Thursday, October 1st. With 20956,85 index points it was up 0.30 per cent compared with Wednesday’s result (2083,96 index points). And it is up 25.99 per cent from year-end.

BET (of Bucharest) was up by 1.06 per cent on Thursday. It ended the day with 7055,58 index points. On Wednesday it was 6981,62 index points. And it dropped by 0.39 per cent by year-end.

PX (of Prague) dropped by 0.33 per cent to 967,94 index points on Thursday (from 971,10 index points on Wednesday). From year-end it is up 2.24 per cent.

WIG20 (of Warsaw) decreased on Thursday by 0.80 index points. The result was 2049,93 index points, while on Wednesday it was 2066,37 index points. And from year-end it dropped by 11.49 per cent.

OMXT (of Tallinn) increased from 863,21 index points on Wednesday to 866,68 index points on Thursday. So it was up 0.40 per cent. And from year-end it grew 14.78 per cent.

OMXR (of Riga) increased of on Thursday. It was up 0.34 per cent with 573,31 index points (compared with 571,39 index points on Wednesday). And from year-end it’s up 40.51 per cent.

OMXV (of Vilnius) was again up. This time by 0.39 per cent with 481,71 index points. The day before it was 479,82 index points. From year-end it increased by 6.47 per cent.

SAX (of Bratislava) grows dynamically. On Thursday it ended with 277,68 index points while on Wednesday it was 268,87 index points (up 3.28 per cent). And from year-end it’s up 24.90 per cent.

UX (of Ukraine) was down 0.08 per cent on Thursday with 871,67 index points (compared with 872,35 index points on Wednesday). And dropped by 16.64 per cent from year-end.

German DAX ended down on Thursday with 9509,25 index points compared with 9660,44 index points on Wednesday (the drop of 1.57 index points). And it dropped by 3.02 index points from year-end.

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