OREANDA-NEWS. On 20 July 2009 was announced, that The Constitutional Court abolished the Law #694-VI allowing industrial enterprises to import energy saving equipment without VAT tax payment, which takes place on 14 July 2009. According to the government this will save around UAH 2-3bn to the state budget.  In addition, the Cabinet of Ministers announced that it will raise prices for the natural gas by 20% for both population and energy enterprises till the end of 2010. The prices will be increased gradually quarter by quarter. This will enable to reduce the debt of Naftogas Ukrainy, estimated at UAH 25bn till the end of 2009.

Millennium Capital sees these decisions to be among the main steps to receive the third thranche of the IMF loan. Namely, the IMF required Ukraine to reduce its government spending in order to receive USD 1.9bn out of USD 3.3bn trance to redeem its external obligations. Such a decision increases the probability of 3rd trance provision to Ukraine and reduces the risk of sovereign debt default. This also should decrease the spreads of Ukrainian bonds on the international markets in the nearest future.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.