Page 85 - RusRPTAug20

9.1.7​ TMT sector news
Mail.ru Cloud Solutions (MCS) and Amazon Web Services (AWS) are to launch a multi-cloud (​the use of multiple cloud services in a single network architecture) in Russia, with the revenue split based on the consumption of each party's services. This partnership will help AWS's global clients to enter the Russian market and to meet local legal requirements (including related to personal data storage), while MCS's Russian clients will have the opportunity to scale up their operations abroad, according to the article.
9.1.10 ​Utilities sector news
Non-payment crisis in utilities was avoided. ​COVID-19 forced lower demand (predominantly through the OPEC+ effect) and forced lower RSV electricity prices (predominantly through the 30% surge in hydro production in Russia), but failed to cause a non-payment crisis in the sector. With this report, we halt our weekly publication. In our view, the effect of the ongoing crisis is mild, while investors now prefer to price in lower CoC. In this last issue of our weekly, we attempt to quantify the virus.
Between the start of social distancing and 1 July, electricity demand dropped 4.4%. We note, though, that the pace of the decline accelerated, from 2.9% y/y in April to 5.9% y/y in June. However, we tend to see this as being the effect of the OPEC+ oil production reduction in Russia, rather than sluggish industrial activity per se. Hand in hand with demand, due to the market nature of the price-setting mechanism, day-ahead electricity prices dropped 13.5-15.6%. Combined, the demand and RSV decline resulted in RUB105.1bn of missed revenues in the generation sector overall, 5% of the FY20F total.
Non-payments stayed manageable. Non-payments in the wholesale market went up RUB3.8bn vs. the 1 April indicator, the equivalent of 0.1% of the total
85​ RUSSIA Country Report​ August 2020 ​ ​www.intellinews.com