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potentially through green certificates as well.
In addition, TGK1 announced last week that it had signed a bilateral contract to supply green energy from Volkhovskaya HPP to AB InBev Efes’s Saransky, Volzhsky and Ivanovsky plants.
With the accelerating demand from companies for green energy to reduce their carbon footprints, we see the news as supportive. These two contracts come on top of the recently signed bilateral contracts or contracts with green certificates: Sibur with TGK1, PhosAgro with TGK1, Polyus with RusHydro, Shekinoazot with Fortum and Hevel, Procter & Gamble with Fortum, IKEA and MEGA with Solar Systems, South ports and NovaWind, the wind energy division of RosAtom, TGK1 and Polyus, Fortum and RDIF and Leroy Merlin, Sberbank and Altenergo, Solar Systems and KuibyshevAzot. Although the commercial details of the contracts have not been disclosed, both TGK1 and RusHydro (which we cover) note that they are favourable for both sides, and we continue to expect green energy to develop a premium pricing in Russia (2-5% to traditional energy), until CO2 pricing is rolled out (we see that happening by 2025).
Rosatom has begun the construction of a unique power unit with a fast neutron reactor BREST-300, a part of the Proryv strategic project. The power unit is being built in the closed city of Seversk, Tomsk Region, Russian media reported. On June 8, the first concrete was poured into the base of the power unit. “We are creating the basis not only for clean and safe energy of tomorrow. We are creating the basis for the development and strengthening of Russia’s leadership in a new technological order, we create the country’s agenda until the end of this century,” the head of Rosatom Alexei Likhachev said. The 300 MW power unit with the BREST-OD-300 reactor will become a part of the experimental demonstration energy complex (ODEC). BREST will start operating in the second half of the 2020s. In addition to the BREST reactor, ODEK also includes a plant for the production of mixed uranium-plutonium nitride nuclear fuel for the reactor and a plant for the reprocessing of spent fuel.
9.2.11 Metallurgy & mining corporate news
● Gold & Diamonds
Alrosa’s rough sales fell 10% m/m to $346mn in May, up 32% vs 2019.
Alrosa’s May rough sales fell 10% m/m to $346mn vs $383mn in April, but rose c9.6x y/y. Compared to May 2019, rough sales increased by 32% and by 25% vs May 2018. Total diamond sales were at $365mn in May, down 9% m/m (vs $401mn in April) and up 9.1x times y/y. In 5M21, total sales rose by almost 2x y/y to $1.93bn, and rose 21% vs 5M19. Evgeny Agureev, Deputy CEO of Alrosa, commented that the company has seen strong demand from the Indian midstream. Despite the epidemiological situation in April and early May, cutters
143 RUSSIA Country Report July 2021 www.intellinews.com