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13:58
UKRAINIAN DANUBE NAVIGATION POSTS 88% RISE IN NET LOSSES IN H1, 2009

Kyiv, August 6 (Interfax-Ukraine) - OJSC Ukrainian Danube Navigation (Izmail, Odesa region) in January to June 2009 saw its net losses rise by 88.2% year-over-year, to UAH 19.2 million.

The company's president, Vadym Sukhonenko, told the agency that one of the reasons for the company being in the red was expenses of UAH 17.9 million on the maintenance of idle vessels aged from 35 to 60 years. As a whole, expenses for the said vessels reach UAH 30 million per year.

He said that another serious problem is expenses on the maintenance of arrested ships, which are up to UAH 12 million per year. At present, the Serhiy Hrytsevets, a ship arrested in Turkey, could be sold at an auction for debts for its repairs. Turkey is claiming a $500,000 debt it says is owed by Ukrainian Danube Navigation.

"The Nikolai Zabolotsky, a ship staying in Odesa, also has debts of around $80,000 for repairs. A sanitary doctor has issued a ban on the crew's staying aboard," Sukhonenko said.

The Turkish bunker company demands $130,000 for fuel, otherwise the Vasily Shukshyn, a ship arrested in Istanbul, could be sold.

He also said that another problem is the debt of authorities for VAT reimbursement of UAH 2.1 million.

"Navigation several times proposed to sign an amicable agreement with the State Tax Administration of Ukraine to send the funds to pay back wages and taxes," he said.

Ukrainian Danube Navigation performs over 30% of the transportation on the Danube. The company's fleet includes almost 400 self-propelled and towed river vessels, and 30 seagoing vessels.

UDN mainly delivers Ukrainian metallurgic raw materials to various customers in countries located on the Danube River.

The key clients of Ukrainian Danube Navigation are Ferrexpo, which is under control of Ukrainian businessman Kostiantyn Zhevaho, the core asset of which is Poltava Mining, and Austria's Danube Shipping Management Service GmbH (DSMS).

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