Page 100 - RusRPTAug19

reported by bne IntelliNews, the troubles of Russia's largest independent vertically integrated refinery Antipinsky led Sberbank to prepare to bankrupt the company, while London courts froze €225mn ($253mn) worth of assets and oil products of the company over a claim from VTB Bank, Russia's second largest. Reportedly, Sberbank requested that the refinery could be supported from budget funds in the form of increased excise duty rebates on buying oil for refining (up from 10% to 50%). The measure could cost RUB10bn- RUB12bn annually, analysts surveyed by Vedomosti estimated. The bank also reportedly suggested to allow Antipinsky to swap oil from some extraction assets it controls for cheaper oil from West Siberia. Last month, unconfirmed reports claimed that Azerbaijan’s national oil company SOCAR and Sberbank had created a joint venture for oil refining at the Antipinsky facility. It is expected that the JV, in which Socar will have 60%, will process oil at the Russian facility while it remains in a state of bankruptcy, according to Kommersant daily.
Lukoil is planning to sign an agreement with Abu Dhabi National Oil Company (ADNOC) in October to acquire a 5% stake in the Ghasha offshore gas concession in the United Arab Emirates, Kommersant reports. According to Lukoil CEO Vagit Alekperov, the active, final part of negotiations is currently underway. The Ghasha concession consists of offshore oil, gas and condensate fields (Hail, Ghasha, Dalma, Nasr, Sarb and Mubarraz) and is being developed by ADNOC (60%), ENI (25%), Wintershall (10%) and OMV (5%). The term of the concession agreement is 40 years, starting from November 2018. Production is planned to be launched after 2024, with peak gas and oil and condensate production of more than 15bcm/a (0.75bcm to Lukoil’s stake) and 6mnt/a (0.3mnt to Lukoil’ stake), respectively, contributing some 2.2% and 0.3% to Lukoil’s total production, we estimate.
9.2.2 Automotive corporate news
The Russian Direct Investment Fund (RDIF) and Italian tire producer Pirelli are discussing a €100mn investment in construction and upgrades of Voronezh Tyre Plant, RDIF CEO Kirill Dmitriev told reporters late on Thursday. “We are announce new projects we plant to conduct:...it includes additional investment with Pirelli in construction and upgrade of the tire plant,” he said. A representative of the RDIF said that the investment amounts to €100mn, and that the sides are now coordinating the main conditions of the deal they plan to close until the end of 2019. Dmitriev said that the RDIF and Italian food company Barilla are discussing building of a plant in Russia, while a spokesperson for the fund said that the existing production facility in Solnechnogorsk will be expanded through construction of a semolina noodle line. Conditions will be coordinated until the end of September, the spokesperson said.
9.2.3 Aviation corporate news
Sheremetyevo International Airport has reported an increase in domestic and international passenger growth for H1 of 2019, International Airport Review informed. The airport has summed up its operating results for Juna and the first half of 2019. Overall passenger traffic in the first six months of 2019 amounts to 23,404mn passengers, which is an increase of 14.1% year on year ( y/y). In the first half of 2019, the airport sees 188,346 take-off and landing operations, which is an increase of 14,6%. Sheremetyevo is the
100 RUSSIA Country Report August 2019 www.intellinews.com