Page 64 - UKRRptJul20

its stored gas reserves by 13% since mid-March, to 18bcm today. ​These low prices will be passed on to industrial users this month with a 19-21% cut in prices, Naftogaz promises. Last month, the state energy company cut gas prices to consumers by 21%, to $85 per 1,000 cubic meters.
Foreign traders have tripled their volumes of natural gas stored y/y in western Ukraine’s ‘Customs Warehouse’ reservoirs​ reports Uktransgaz, the pipeline unit of Naftogaz. Increasingly comfortable with the 2-year-old low duty regime, foreign traders now have about one third of their 2bn cubic meters in the system as ‘short haul transportation.’
9.1.2 ​Automotive sector news
Russia's car and LCV sales (excluding Mercedes and BMW) were down 52% YoY to 63,033 units in May and 26% YoY to 478,135 units in 5mo20, according to the latest data from the Association of European Businesses (AEB). Nevertheless, sales in May increased 62% from the April trough, when they fell 72% YoY. We attribute this MoM improvement to a gradual easing of the COVID-19-related restrictions, which helped unlock some pent-up demand, as well as some initial effects of the state support measures. We also think that the same drivers will bring further improvements in June, although the YoY decline during the month could still be to the tune of 30% due to weak consumer confidence, in our view.
9.1.3​ Transport sector news
Travel dropped in half during the first five months of this year, ​to 20bn passenger kilometers. Rail passengers totalled 28mn, down 56% y/y, reports the State Statistics Service. Road passengers were down 45%, to 420mn. Air passengers were down 56%, to 2mn passengers. Last year, travel was up 3%
64​ UKRAINE Country Report​ July 2020 ​ ​www.intellinews.com