Page 13 - FSUOGM Week 12 2021

FSUOGM NEWS IN BRIEF FSUOGM

RUSSIA and other "green" challenges. Uniper, OMV support Nord
Recent reports suggest several initiatives
Russia's Novatek gas are being developed at the same time, Stream-2 in wake of US
such as green certificates, a greenhouse
major surprises with 2H20 gas (GHG) emission reduction strategy, an sanction threats
energy efficiency policy, as well as a law on
dividends reducing C02 emissions. Austria’s OMV believes that the Nord
Stream-2 gas pipeline is a purely economic
Reportedly, under the core 2021 focus
The board of Russian natural gas major on climate issues and the move to carbon project that would improve Europe’s
Novatek recommended another dividend neutrality, the government admits that competitiveness, while Germany’s Uniper
of RUB23.74 (USc 32) per share for 2020, nuclear energy is low-carbon (and is to be is sure that the pipeline will be finished,
in addition to RUB11.82 already paid for included into the green certificates) and representatives of the two companies told
1H20. aims to work on promoting nuclear energy PRIME on March 19.
As reported by bne IntelliNews, the as low carbon abroad. On March 18, US State Secretary Antony
company posted higher than expected As analysed by bne IntelliNews, the Blinken again said that the companies
earnings for 4Q20, on the back of improved state-owned nuclear agency Rosatom is on that participate in the project risk being
gas prices and increased production. a tear and the export of nuclear technology sanctioned by the US demanding them to
"The company approved a new dividend is already one of Russia’s biggest overseas stop working on the pipeline.
policy at the end of last year stipulating a earners. “We are still sure that the pipeline would
minimum payout of 50% of adjusted IFRS The company operates 35 NPPs in be finished and that the Nord Stream-2
net income," Sberbank CIB reminds on Russia that produce 28 GW of power, or is feasible from an energy point of view,”
March 22. 18% of domestic energy needs, and it is Uniper’s representative said, adding that
Based on this and the 2020 results, the actively exporting its nuclear technology U.S. sanctions have no impact on the
analysts expected a payment of RUB16 to countries around the world. At the company as it was a financial investor of the
per share for 2H20. "However, the BoD end of 2019, Rosatom expected to triple project.
has opted to use a 64% payout ratio," its FX-denominated revenues by 2030 by “We are constantly monitoring political
they calculate, "meaning that the 2H20 expanding the number and type of foreign developments around the project, and we
payment is substantially higher than we had projects and new products. are in contact with the German government
anticipated (by 50%)." In addition, the government also plans about it. We support the approach aimed
However, the difference in yields is not to oppose foreign initiatives that enforce at constructive dialogue between Germany,
that significant (making an extra 50 basis foreign regulations in Russia concerning the E.U., and the U.S. to prevent unilateral
points). The 2H20 DPS of RUB23.74 implies artificial trade barriers and instead support economic sanctions.”
a 1.7% dividend yield and takes the total the promotion of "green" financing. “OMV is one of the creditors of the Nord
DPS for 2020 to RUB35.5, for a 2.5% yield, The Ministry for Economic Development Stream-2 project. We see this project an
Sberbank CIB estimates. reportedly estimated that declaring nuclear economic one, which is important for both
As followed by bne IntelliNews, Novatek power to be low-carbon would make it the energy security and competitiveness of
is securing the financing for Arctic LNG-2, possible to reach the national climate targets Europe,” OMV’s representative said.
its second liquefaction project to launch and boost its export potential. The Nord Stream-2 project envisages
production. Its first, Yamal LNG, went Under the curent strategy, by 2030 Russia construction of two lines of a natural gas
on stream in December 2017 and is now will have reduced GHG emissions to 70% of pipeline with an annual capacity of up
producing 17mn tonnes per year (tpy) of the 1990 level, implying nuclear power plant to 55bn cubic meters, running from the
super-cooled gas. capacity is to increase 7%, VTB Capital Russian shore to Germany under the Baltic
wrote on March 17. Sea. Russian gas giant Gazprom builds the
"Russia has adopted a wide definition pipeline together with Germany’s Uniper
Russian nuclear plants of low-carbon energy (as was proposed and Wintershall Dea, Royal Dutch Shell,
Austria’s OMV, and France’s Engie.
by the Ministry of Energy) and is to
could be included in "green include nuclear power into its certification
mechanism, with the final legislation to be
certificates" approved soon," VTBC comments. BP's interest in Rosneft

Russian government plans to approve the "The Russian power mix currently expands to 22% in 2020
inclusion of nuclear power plants (NPPs) includes about 40% of low-carbon
into the "green" certificates mechanism, electricity, while we estimate that the BP’s interests in Rosneft rose to 22.03%
Izvestia daily reported, citing a report largest industrial consumers account for in 2020 from 19.75% in 2019 due to the
by Deputy Prime Minister Victoria 37% of total demand. Those exporters have Russian oil firm’s transactions in its own
Abramchenko to President Vladimir Putin. the capacity to lower their CO2 Scope 2 shares, the British energy company said in
As reported by bne IntelliNews, Russian footprint through bilateral contracts and the its annual report on March 22, according to
state energy policy is focusing more and green certificates mechanism," the analysts Reuters.
more on ESG, as Russia belatedly prepares believe. BP, which acquired its stake in Rosneft in
to tackle the EU carbon tax introduction 2013 following the $12.5bn sale of its stake

Week 12 24•March•2021 www. NEWSBASE .com P13