Russia 100325 Basic Political Developments
Bloomberg: Evraz Group, Rosneft, Wimm-Bill-Dann: Russian Equity Preview
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- Bloomberg: Rio Tinto, Prokhorov May Form Russian Venture, Kommersant Says
- Power-Gen Worldwide: Cogen plant for the next Winter Olympics in Russia
- Russia Today: Energy sector being pushed to modernize
Bloomberg: Evraz Group, Rosneft, Wimm-Bill-Dann: Russian Equity Previewhttp://www.bloomberg.com/apps/news?pid=newsarchive&sid=aDsijWm.l360 By Anna Shiryaevskaya March 25 (Bloomberg) -- The following shares may have unusual price changes in Russian trading. Stock symbols are in parentheses and prices are from the previous close unless otherwise noted. The 30-stock Micex Index decreased 0.4 percent to 1,404.77. The dollar-denominated RTS Index fell 0.7 percent to 1,514.58. Evraz Group SA (EVR LI): Evraz Group SA said it priced 15 billion rubles of three-year bonds at a coupon rate of 9.25 percent. The notes were issued by OOO EvrazHolding Finance. Evraz closed at $37.00 in London. OAO Rosneft (ROSN RX): Crude oil fell after a government report showed a bigger-than-forecast increase in U.S. supplies and as the dollar surged to a 10-month high against the euro. Crude oil for May delivery dropped $1.61, or 2 percent, to $80.30 a barrel at 4:55 p.m. on the New York Mercantile Exchange. Russia’s biggest oil producer rose 0.7 percent to 225.62 rubles. OAO Wimm-Bill-Dann (WBDF RX): Wimm-Bill-Dann Foods OJSC was downgraded to “Hold” from “Buy” at Otkritie Brokerage House by equity analyst Victor Dima. Russia’s biggest dairy company Wimm-Bill-Dann advanced 0.3 percent to 1,569.22 rubles in Moscow. To contact the reporter on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.net Last Updated: March 24, 2010 22:00 EDT Bloomberg: Rio Tinto, Prokhorov May Form Russian Venture, Kommersant Sayshttp://www.bloomberg.com/apps/news?pid=newsarchive&sid=acz04n5YFH4E By Anastasia Ustinova March 25 (Bloomberg) -- Rio Tinto Group may form a Russian venture with billionaire Mikhail Prokhorov’s Intergeo mining company, Kommersant said, citing unidentified people familiar with the matter. Prokhorov holds 12 licenses to develop deposits of metals including copper and nickel in Siberia and the Far East that he bought from Vladimir Potanin, the biggest shareholder of OAO GMK Norilsk Nickel, the Moscow-based newspaper said. Norilsk Nickel, Russia’s biggest mining company, last year ended its exploration venture with Rio Tinto, Kommersant said. To contact the reporter on this story: Anastasia Ustinova in St. Petersburg at austinova@bloomberg.net. Last Updated: March 25, 2010 01:44 EDT Power-Gen Worldwide: Cogen plant for the next Winter Olympics in Russiahttp://www.powergenworldwide.com/index/display/articledisplay/8634105315/articles/powergenworldwide/distributed-generation/cogeneration-chp/2010/03/cogen-plant_for_the.html 25 March 2010 - Siemens is to contribute to the 2014 Winter Olympics in the Russian city of Sochi by implementing several energy projects worth a total of more than €125 million (US$167 million).
Siemens Energy has supplied gas and steam turbines to the local utility, Sochinskaya TES, which will ensure power and heat supply for athletes and visitors at the 2014 Winter Olympics. The company supplied two SGT-700 gas turbines, each rated at 29 MW, and a 25 MW steam turbine with generator. It also supplied switchgear for the high- and medium-voltage levels.
The Siemens turbine-generators, with an efficiency level above 50%, will double the electricity generating capacity of the Sochinskaya cogeneration plant to approximately 160 MW. The plant’s heating capacity will increase to 210 GJ. Commissioning is scheduled for mid-2010. Russia Today: Energy sector being pushed to modernizehttp://rt.com/Business/2010-03-25/energy-sector-pushed-modernize.html/print 25 March, 2010, 09:32 Russia's power plants are worn out, and both owners and officials agree something must be done. There is strong reluctance in the industry to commit any more money with market conditions still so uncertain. Last month, Prime Minister Putin had sharp words for the energy companies, which he accused of not meeting their investment obligations. The power companies blame the crisis and slumping demand for energy, plus investors want to see higher tariffs and greater transparency in the energy market so they can be sure they'll get a return on their money. Italy’s Enel, which runs one of Russia's biggest generators, continued its investment program throughout the downturn. Dominique Fache, Chief Operating Officer of Enel Russia, says the operating environment in Russia is too complicated and wants to see clearer rules and further consolidation in the sector. “We need this second wave coming which is going not to change the direction but make things happen. Second wave should bring us consolidation. It’s a capital intensive business and it’s a long term business so it needs solid robust strong players.” The Sayana Shushenskaya hydro plant accident in august last year is just one sign of the poor state of repair of generating facilities. The government is trying to identify the most inefficient and worn out plants. These will need to be replaced with new facilities, before being disconnected from the electricity grid according to Fyodor Opadchy, Energy Market Division Director, Energy System Operator
The government hopes the energy companies will fulfill their investment obligations, but hoping seems to be the only thing it can do – since at the moment officials lack any real instruments to force the companies to spend money if the returns look unfavorable. VTB Capital: RusHydro to seek strategic investor in 2012-13 - likely to partner with foreign utility to expand abroad http://www.businessneweurope.eu/dispatch_text11397 VTB Capital, Russia March 25, 2010 - could also sell stake in equity - positive for the company News: Yesterday, Interfax quoted George Riginashvili, a member of RusHydro's Board talking about the company's plans. The key takeaways from what he said are as follows. • RusHydro plans to seek a strategic investor for international expansion in 2012-13. The company is discussing its possible development plans with the Ministry of Energy and it is more likely that the strategic investor will be a foreign utility, since the aim of the partnership is to expand abroad. RusHydro is considering both a partnership in some specific projects as well as selling a stake in equity. However, the state will continue to be the controlling shareholder. • In addition to the supply companies owned by UES of Far East, RusHydro is also looking to acquire other supplies company in the regions where it operates. • RusHydro expects the government decree on special allowances for renewable energy projects to be signed by the end of the year. Our View: RusHydro has recently started talking about expanding abroad and we think that attracting an international partner would be a positive development for the company. Were that partner to end up with a stake in RusHydro, it would also help the latter's corporate governance outlook. Expanding into the electricity supply business might also make business sense, allowing the company to get access to end customers and earn additional margins. On the other hand, we note the risk from the valuation side (which is unknown). Overall, we welcome this further good news from the company's management, including the expectation that the allowances for renewable energy producers are to be approved this year. We might see more details on the long-term strategy from the company's update, which we expect to come out by mid- April. VTB Capital: Evraz might sell two coal mines to ArcelorMittal http://www.businessneweurope.eu/dispatch_text11397 VTB Capital, Russia March 25, 2010 - ArcelorMittal looking to secure coal supplies to CIS steel capacities - Evraz might be interested in disposing of difficult to develop mines - will remain self-sufficient in coal News: According to Bloomberg, ArcelorMittal is considering buying two coking coal mines from Evraz in Kuzbass Region (the Yerunakovskaya-8 and Yubileynaya mines). Our View: The rationale for ArcelorMittal looking to buy mines in Russia is to secure additional supplies of coking coal for its steel making capacities which are located close by (ArcelorMittal Kryviy Rih (Ukraine) and ArcelorMittal Temirtau (Kazakhstan)). The company already owns three mines in the Kemerovo basin (which it bought in 2008) which accounted for 2.7% of the coking coal produced in Russia in 2008. As far as Evraz is concerned, in light of surging coking coal prices it is not immediately obvious to us why the company would want to sell the two mines. We believe that it might be interested in disposing of those mines that are complicated to develop. In particular, we note that work has not yet started at Yerunakovskaya-8 and Yubileynaya has been known for its high methane content (and therefore unstable production due to explosions) and high production costs. Furthermore, the high ash content (over 50%) at Yubileynaya has also been the problem: Evraz has had difficulty finding customers for this type (quality) of coal. In terms of production, disposing of the Yubileynaya mine would cut 12% of Evraz's nominal coal mining capacities while as far as reserves are concerned the effect would be even smaller (a decrease of 6%). This is partly attributable to Evraz's recent reacquisition of the Mezhegey coal deposit with 213.5mnt of reserves. Therefore, while the disposal of Yerunakovskaya-8 and Yubileynaya would cut quite a solid portion of the capacity it might be partly justified by the mines' low efficiency and operational difficulties. More importantly, though, Evraz will still be self-sufficient in coking coal concentrate (in 1H09, the company consumed 3.6mnt of coking concentrate while it produced 4.7mnt (including pro rata from Raspadskaya)). However, the ongoing surge in coking coal prices definitely makes the deal a bit less attractive for Evraz now. BNE: Rencap to enter Mongolia's invest market http://www.businessneweurope.eu/dispatch_text11397 bne
Leading Russian investment bank Renaissance Capital says it will start work on Mongolia's investment market, the company said in a statement Wednesday. Renaissance Capital signed agreements on cooperation with Mongolian investment bank Mongolia International Capital Corporation (MICC) and Mongolian investment company Monet, the statement said. Renaissance Capital hopes to organize financing for various projects, to carry out international mergers and acquisitions, and provide consultant services for privatizations. Mongolia's stock market was the best performing index in the world over the last decade. Directory: gifiles -> attach attach -> British Forces – Akrioti, Greece Griffin Fighter Squadron (84 Squadron raf) MoD announced possible Typhoon and Tornado arrivals to the base France attach -> Russia 110204 Basic Political Developments attach -> Unclassified//for official use only attach -> Adaptability Sustainment attach -> Pop-up 1 ("C" Chechnya) Header Text: Emir of the Caucasus Emirate Doku Umarov Image attach -> Russia and Islam are not Separate attach -> Chapter 13: The Northern Caucasus attach -> Russia 100209 Basic Political Developments attach -> The evolution attach -> The devolution Download 338.47 Kb. Share with your friends:
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