Page 87 - bne IntelliNews Country Report: Russia Dec17

Gazprom’s production growth was the lowest since November 2016, worsening on the back of a deceleration in export supplies to Europe (which actually fell 6.5% y/y in October, for the first time in the last 15 months), we think.
As for the growth in Lukoil’s gas production, it was most likely driven by Western Siberia. Novatek’s consolidated gas production (including joint ventures) declined 6.9% y/y: production at Arcticgas was up 3%, while at Nortgas it fell 14.5% y/y.
Russia will invest RUB100bn ($1.7bn) in the gas industry of Kyrgyzstan , Russia's deputy foreign minister Gennady Gatilov was quoted as saying by TASS on November 28. As a result of the investment, the gasification level of the country will go up from 22% to 60%, he added.
9.1.2 Automotive sector news
Sales of new passenger cars and LCVs in Russia increased by 17.3% year-on-year in October , the Association of European Business, which follows the market, said in a press release on November 9. In total, 148,597 units were sold in October, and 1,277,938 in the January-October period. Domestic names continue to lead the sales, the opposite from the boom years. The iconic Lada, manufactured by the country's largest carmaker Avtovaz , controlled by Renault, was the biggest winner, with a 23% increase in sales y/y in October and 17% in the January-October period. It was followed by KIA with 16% and 25%, respectively, Hyundai (11% and 11%0, Renault (18% and 18%) and Volkswagen (15% and 15%).
9.1.3 Construction & Real estate sector news
Russia's President Vladimir Putin has ordered the government, the Central Bank of Russia (CBR) and the Agency for House Mortgage Lending to provide a plan aimed at eliminating share agreements in residential development in three years . The plan is to be presented to Kremlin by December 15.
"Share agreements are the main way to finance residential construction in Russia and allow developers to collect funds from clients at the property construction stage with subsequent commissioning," VTB Capital reminded on November 8.
A large number of to-be homeowners seeing developers run off with their money has created controversy around practice of share agreements in residential housing development.
The authorities have been prompted to react to protect the housing buyers, but the industry's largest developers warned that eliminating the practice of share agreements and housing pre-sale would hit the financing of recovering development and construction industry hard and increase the prices of housing.
These financing schemes covers some 80% of the primary market in the Moscow Metropolitan Area and most of the projects of Russia's listed
87 RUSSIA Country Report December 2017 www.intellinews.com