EAVEX Weekly

February 20, 2017
 

Ukrainian equities listed in Kyiv finished mixed last week as local news flow was dominated by a possible energy crisis in the country. A coal supply blockade from the Donbass by rogue nationalists has created risks for thermal power plants. CentrEnergo’s CEO Oleg Kozemko said that the company has already switched into a fuel saving mode at its Tripilska plant in Kyiv province. CentrEnergo’s (CEEN) stock edged down by 1.4% to UAH 11.10 per share. The railroad blockade could cause even broader negative impact for Ukraine’s economy if it leads to a breakup of production links with metallurgical plants located on the Donbass separatist-occupied territories. The government has not provided a persuasive answer on how the country can avoid potential blackouts. However, the situation looks like it may be a form of political extortion by right-wing populist parties. Meanwhile, Prime Minister Volodymir Groysman once again told the media that negotiations with the IMF are in the final stage rega