Kyiv City Council will allocate UAH36.7 mn to Kyivmlyn and Kyivkhlib

16.07.2008 16:26 "Agro Perspectiva" (Kyiv) — Kyiv City Council Budgetary Commission has approved draft changes to city budget stipulating additional allocations: UAH36.7 mn as compensation to companies Kyivmlyn and Kyivkhlib for 2007 and 1Q 2008 expenditures; UAH37 mn – as targeted aid to Kyiv low-income citizens due to bread prices growth.

Note. As to OJSC Khlib Kyieva declaration, Kyiv-based bread baking plants belonging to OJSC Khlib Kyieva will suspend (since Jul 15, 2008) shipping bread to companies/private entrepreneurs which sell bread beyond Kyiv due to plants low flour reserves.

There is a real threat of bread baking plants halt due to their constantly raising indebtedness to resources supplies: thus, a few days ago Brovary-based bread baking plant had to halt as gas supply was cut off due to baking plant unpaid debts.

Reference. As of now, working group (incl. Kyiv Municipal State Administration/Kyiv City Council representatives) works on new prices formation system.

OJSC Khlib Kyieva shares 13.5% total domestic bread production market.

Early Jul 2008 OJSC Khlib Kyieva declared about being eager to raise sale prices for social kinds of bread by 1,6-2 times.

Reportedly, Kyivmlyn/Kyivkhlib Apr 2008 production profitability was: – 30% (long loaf Nyva), – 37% (bread Ukrayinskiy), – 28% (bread Pshenychniy).

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