Page 2 - bne_newspaper_May_10_2019

Top Stories
May 10, 2019 www.intellinews.com I Page 2
Russian Market Data Value
1M YTD
Equity Indices
RTSI
1,246
2%
17%
MOEX
2,580
2%
9%
MSCI EM
1,063
-2%
10%
S&P
2,932
1%
18%
NASDAQ
8,123
2%
23%
DAX
12,287
2%
16%
FTSE
7,381
-1%
10%
Commodities
Price, $
1M YTD
Brent
71.0
1%
31%
WTI
62.3
-1%
37%
Urals
74.2
-4%
65%
Gold
1,281
-1%
0%
Silver
14.9
-1%
-4%
Nickel
12,170
-7%
15%
Copper
6,180
-4%
4%
Aluminum
1,783
-4%
-5%
FOREX
Value
Russia sectors performance % YTD
1M YTD
EUR/RUB
73.05
0%
-8%
Russia sectors performance % YTD
Oil & Gas Utilities Financials Consumers Telecoms
M&M RTS MOEX
12
15 16
16.5
17
20
9
8.8
0 5 10 15 20 25
Source: MOEX, BCS GM
source: MOEX, BCS GM
GAS WARS:
Ukraine faces a bleak winter as Russia prepares to cut it off
delayed or blocked altogether. Nord Stream 2 will add an extra 55bn cubic metres (bcm) to Rus- sia’s pipelines running to Europe that can replace most of the circa 65bcm that travels through Ukraine each winter.
If Russia does cut Ukraine off before Nord Stream 2 is ready then it will have to reduce its deliveries to its contracted minimums and even then there will probably be a shortfall, says Vitrenko. That means Europe can look forward to a deficit of gas on the market and soaring prices. For Ukraine the outlook is even bleaker as it may end up with no gas imports at all from either its eastern or western border and it will have to reverse the flow in its domestic pipelines to pump gas from the western storage tanks to supply the northern regions. Last time it tried that in 2009 the system nearly collapsed.
All this could be avoided if Russia and Ukraine can come to some compromise. The existing gas supply and transit deal will expire at the end of this year and before a new deal can be signed, disputes over the old one need to be resolved. But here too talks are fraught and the legal writs are flying.
Stockholm standoff
The Stockholm arbitration court’s decision in De- cember 2018 ordered Gazprom to pay compensa- tion of $2.6bn to Naftogaz, which the Russian com- pany has refused to do. With interest the amount the Russians owe is now $2.8bn and Ukraine has begun the process of trying to seize Gazprom assets in European countries in lieu of payment.
“They are not paying. That is why we are enforc- ing the tribunal’s award all over the world, in-
Sectors: % return YTD