Page 83 - RusRPTMar20

their imports of LNG​, reports the FT. The companies are considering a temporary freeze in long-term LNG delivery contracts due to the force majeure caused by the coronavirus outbreak and the ensuing decline in the demand for gas in China. Three Russian companies deliver gas to China. Novatek's Yamal LNG supplies 3mnt of LNG (4bcm in the regasified form) to CNPC and Sakhalin Energy exports around 4% of its 11mnt/a LNG production to China, while Gazprom has a 30-year take-or-pay contract with CNPC for the delivery of natural gas through the Power of Siberia pipeline, with 4.25bcm planned for 2020.
A new $231bn tax regime for the Russian Arctic is to provide for an unprecedented wave of investments in icy drilling​. The new legislation was hammered through the government on January 30. It will give national oil companies incentives for major investments in Arctic oil, the country’s new Prime Minister Mikhail Mishustin says. "These laws will create favorable conditions for Arctic investments, the development of unique fields and consequently the accelerated development of the Northern Sea Route," the premier underlined as his cabinet approved the legislation.
Russia’s energy exports to the United States have reached an eight-year high in October 2019​, according to US Energy Information Administration data cited by the RBC news website Thursday. Russia exported 20.9mn barrels of crude oil and petroleum products to the US in October 2019, the highest one-month total since November 2011. Russia also surpassed Mexico as the second-largest energy supplier to the US in October 2019, behind Canada. The US imported 166.37mn barrels of Russian crude oil and petroleum products in January-November 2019, the latest available data says. Mexico exported 217.5mn barrels to the US in January-November 2019. Russian Federal Customs Service data cited by RBC estimated the country’s January-November exports of crude oil and oil products to the US at $5.76 mn. In the absence of December data, RBC reported that state-owned oil company Rosneft delivered 3.5mn barrels of oil products to the US that month. At least seven other Russian firms delivered energy products to the US in December, RBC cited the Caracas Capital investment bank as saying. Russia ramped up its oil and petroleum sales to the US after Washington imposed sanctions on Venezuela last year, causing a sharp drop in exports of the country’s key source of revenue.
9.1.2 ​Automotive sector news
Russia's car and LCV sales increased 2% y/y to 102,102 units in January
(excluding BMW and Mini sales, which are now reported on a quarterly basis), according to the Association of European Businesses (AEB). January is a seasonally low month, and we do not see it as an indicator of prevailing trends. Nevertheless, we tend to see the reported growth as a potentially positive signal, given it builds on the December 2019 reversal of the negative sales trend, when expectations of price increases from the new year supported sales.
83​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com