The London stock exchange-listed company said the planned increase in production from Well 27 at Koshekhablskoye, initially planned for the end of the second quarter, had been delayed until the end of the third quarter, implying, according to Dennis Sakva of Kiev-based brokerage Dragon Capital, around $2.6 million of lost revenues.

Naftogaz did not disclose the loan terms, but the reported interest costs for seven years (2012-2019) will be $1.54 billion. This implies an annual interest rate of about 11%, or close to the current yield on Naftogaz’s 2014 Eurobonds, said Dennis Sakva of Dragon Capital.

Coal exports to Europe will provide a stable stream of hard currency sales, which will enable DTEK to continue servicing its debts without relying on the domestic foreign currency market, Dennis Sakva of Kiev-based brokerage Dragon Capital, said in his research note.

Kiev brokerage Dragon Capital said that it forecasts the gas import price for the fourth quarter to drop to $411/1,000 cu m and to fall by 6% year-on-year to $391 in the first quarter of 2013.

The announced volume of supplies to Dniproazot will account for about 30% of Ukrnafta’s estimated production this year, which Dragon Capital forecasts at 2 Bcm. “The latest deal with Dniproazot, coupled with reduced oil royalties (down 30% this year), further improves the financial outlook for Ukrnafta,” commented Dennis Sakva, an analyst at the Kiev-based brokerage.

Tomas Fiala EBA President, Chief Executive Officer, Dragon Capital: "On the one hand I am encouraged by the activity and thorough understanding of business problems by the new Government members and seamless organization of the Euro 2012, on the other, unfortunately, part of this success will be overshadowed by pre-election populism and investors will start to believe in effectiveness of regulatory changes only after they have been fully implemented and tested over time in practice."

"The agreement should promote economic ties between the two countries through boosting external trade," investment bank Dragon Capital wrote in a note to investors. However, the investment bank added, most likely the money will be used predominantly for the purchase of Chinese equipment and products.