Page 137 - RusRPTJun21

technical factors – timing of tariff increases, the leap year and loss in roaming – should abate.
· CapEx jump in 2021 is temporary and does not represent a new L-T level
· Kion video service should be a major ecosystem component for MTS. The L-T aim is to become top-3 in video streaming services in Russia with 20mn users.
9.1.9 Tourism sector news
9.1.10 Utilities & renewables sector news
Fortum disclosed that its wind projects with RDIF had started to supply green energy to Leroy Merlin via Mosenergosbyt through the bilateral contract on Monday 31 May.
Two wind farms in Rostov region, Suliinskaya wind farm (100MW) and Kamenskaya wind farm (100MW), are to supply green energy to three Leroy Merlin stores in Tyumen and Penza. The companies provided the following comments.
· Fortum welcomes the growing interest in green energy, and with its renewables portfolio in Russia, aims to help industrial producers lower their carbon footprint.
· Mosenergosbyt considers the supply of green energy to be an innovative and socially important project, allowing for environmental protection, with electricity consumers now caring about the type of electricity they consume.
· Leroy Merlin is focused on minimising the effect on the environment as part of its global ESG strategy. Improving energy efficiency and reducing its carbon footprint is the company’s top priority, with electricity consumption by its buildings accounting for 67% of the company's overall direct and indirect GHG emissions.
This is yet another example of growing demand for green energy in Russia, and we continue to think such news is supportive. Industrial consumers are securing green energy, either through bilateral contracts or through green certificates, in order to achieve emissions targets. The following contracts have recently been signed: 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, Sberbank and Altenergo). Furthermore, Russian exports are getting ready for the EU carbon tax. The Russian green certificates system is still being developed, while we expect green energy to develop a premium pricing in Russia (2-5% to traditional
137 RUSSIA Country Report June 2021 www.intellinews.com