Page 129 - RusRPTJul21

Gazprom to export 10bcm in 2021. The implied price for China was around $150/mcm, which is below the average of $165.5/mcm reported by China’s customs agency.
Gazprom does not plan to sell its stake in Novatek in 2021, but it cannot rule out selling it if market conditions are attractive. Mr. Sadygov said that Novatek has been a good investment, and Gazprom has received RUB500bn as a result.
Gazprom plans to use a special administration region (SAR) in Kaliningrad or on Russian Island in the Primorsky Krai to re-register its foreign holdings, specifically those registered in the Netherlands now that the double tax treaty has ended. The Netherlands-registered entities include South Steam Transport B.V., Gazprom Finance B.V., Gazprom EP International B.V., Gazprom International Projects B.V. and Blue Stream Pipeline B.V., Vedomosti reported.
By changing its registration to St. Petersburg, the company will contribute more to the city’s budget, although no estimate was provided. Gazprom paid RUB86bn to the Moscow city budget in 2019 and RUB20bn in 2020.
Project financing will be used for the Ust-Luga project, with the split expected to be 30/70 (30% equity financing and 70% debt financing). The details on this should be announced soon.
The company has no plans to attract project financing for Nord Stream 2, as it is fully financed. Long-term bonds could be considered for Nord Stream 2 but not in the near term.
Gazprom could consider green bonds but not this year, and the company should place Eurobonds in the near future. Gazprom is also considering USD, €and CHF, and it could place RUB150bn in perpetual bonds this year.
Gazprom’s production for the first five and a half month of 2021 was up 17.2% y/y to 241.4bcm. Non-FSU exports for the period were up 26.7% y/y to 2.3bcm. Exports were up to Turkey (+191.3% y/y), Germany (+41.8% y/y), Italy (+16.4% y/y), France (+16.6% y/y), Romania (+240.8% y/y), Poland (+19.7% y/y), Bulgaria (+47.2% y/y), Serbia (+134.6% y/y) and Greece (+25.7% y/y).
Russian President Vladimir Putin launched the first stage of the Amur Gas Processing Plant (GPP) on June 8, which is being built by Gazprom near the town of Svobodny in Russia’s Far East. "Let’s get started," Putin said after which, gas began to flow to the plant. The cost of the entire project is over 1 trillion rubles [$13.8bn]. The last stage will be commissioned in 2024-2025.
129 RUSSIA Country Report July 2021 www.intellinews.com