Page 11 - FSUOGM Week 16 2022

FSUOGM NEWS IN BRIEF FSUOGM

Moldovagaz says it’s it would be good if they could complete against a net loss of AZN180mn as of June
“We set April 15 as an interim milestone,
30, 2020. According to the reporting, the
unable to pay gas bill to everything by then,” Akchulakov was cost of sales of SOCAR in the first half of
quoted as saying. “But they haven’t even
2021 amounted to AZN31.7bn (an increase
Gazprom this month started the repairs yet.” of 36.3%). The company's profit from
Repairs might take until late April, he
operating activities in the reporting period
Moldovagaz will accumulate unpaid gas was reported as also stating. amounted to AZN1.9bn (an increase of 1.9
bills worth MDL500mn (€25mn) towards times). Contributions to the state budget of
Gazprom, the company’s manager Vadim Azerbaijan on income tax in January-June
Ceban stated quoted by Deschide.md. Azerbaijan's Socar among 2021 amounted to AZN535mn (an increase
Normally, this would result in immediate of 2.1 times).
interruption of the gas supplies. Failing potential buyers of Serbia's SOCAR's assets increased by 0.8% in
to pay the April 20 bill would add more the first half of 2021 to AZN64.6bn. At
concerns related to the continuation of the NIS the same time, the company's long-term
gas supplies to Moldova, as Moldovagaz assets decreased by 1.3% to AZN45.3bn,
has also failed to meet a target attached to The State Oil Company of Azerbaijan and short-term assets increased by 6%
the gas contract signed last November — (SOCAR) is interested in buying a to AZN19.3bn. SOCAR's capital in the
namely auditing the historic debt owed by controlling stake in the company Naftna first half of 2021 increased by 0.3% up
Moldovagaz to Gazprom. The debt should industrija Srbije (NIS) and was in contact to AZN21.9bn. At the same time, the
have been audited by the end of April. with the majority owner of NIS, the authorised capital of the company is
Mold-Street.com quotes Ceban as saying Russian state company Gazprom Neft AZN4.7bn (an increase of 1.1%).
that the financial deviations, namely the and the Government of Serbia, Demostat The company's liabilities in the first
price of the gas not recovered from end- reported. half of 2021 increased by 1.1% up to
users, will reach MDL500mn at the end The Government of Serbia can AZN42.6bn. Long-term liabilities of
of the month. Normally, such financial nationalize NIS and thus regain ownership, SOCAR as of June 30, 2021 amounted to
deviations are recovered in time by higher but that is not likely because Serbia would AZN21bn (a decrease of 2%), and current
prices approved by the market regulator thus spoil relations with the Russian liabilities were AZN21.5bn (an increase of
ANRE. Federation. Serbia can also buy a stake in 4.2%).
Ceban stressed that his company Gazprom Neft, but it needs a lot of money.
wouldn’t ask for the introduction of the If the ownership structure in NIS had
financial deviations in the fees paid by to change, the best option for the Serbian Mongolia passes legislation
the end-users — a move that needs to be government would be for a foreign
approved by the market regulator. company to buy a controlling stake in to keep commodity prices
The company must pay for half of the Gazprom Neft. According to the source of
estimated gas consumed in the month by the site, Azerbaijan and Russia have good under control
April 20 according to the contract. The diplomatic relations, and SOCAR has had
price charged by Gazprom in April was very very fruitful cooperation with Russian oil Mongolia’s State Ikh Khural (Parliament)
high, $1,193 per 1,000 cubic metres, due to and gas companies. The takeover of NIS on April 15 adopted a bill to put a brake on
the calculation formula that provides for a by SOCAR would also be "convenient" for commodity price increases and commodity
higher (70%) share of the spot prices during Western countries for two reasons. shortages caused by economic impacts
the warm months (April-September). “Firstly, the West could present it as its of the war in Ukraine and import-export
victory in the campaign aiming to inflict border closures made under China's "Zero-
as much economic damage as possible on Covid" policy.
Kazakhstan sees CPC Moscow over its attack on Ukraine, and week after a youth protest in Ulaanbaatar
The swift adoption of the bill came a
secondly, Azerbaijan has good ties with
Pipeline fully restoring both Washington and Moscow. This means which saw protesters demand the
government fix the "unlivable conditions"
that NIS would be owned by a company
operations by late April from a country which is an ally of the US, in the country. According to Mongolia’s
”the website reported on April 12.
Central Bank (Bank of Mongolia, or BoM),
Kazakhstan expects its main oil export Demonstat is a research and publishing Mongolian inflation reached an all-time
route, the CPC Pipeline, which goes center from Belgrade, which actually deals high of 14.4% in March.
through Russia, to restore full operations with surveys and public opinion research. The government emphasised that the
following repairs in late April but remains bill was submitted to Parliament on April 5,
concerned about the potential impact of before the protests happened.
Western sanctions in relation to the Ukraine SOCAR's net profit for the The legislation is to regulate seven issues:
crisis and shipping issues on the flow of - BoM is to apply discount funds to
Kazakh crude, Energy Minister Bolat first half of 2021 amounted meat and flour suppliers, as well as oil
Akchulakov reportedly said. importers, while limiting foreign exchange
Akchulakov noted that the CPC operator to $354mn risk through the use of other financial
has the necessary spare parts and said that instruments.
the only thing standing in the way of repairs SOCAR's income in the first half of 2021 - To strengthen the country's foreign
was bad weather, Bloomberg reported. The amounted to AZN35.7bn (~$21bn), which exchange reserves, BoM will give financing
alleged damage to the pipeline terminus is 38.1% more than in January-June 2020, and down payments to gold mining
on the Caspian Sea coast, claimed by according to the company's consolidated enterprises, while also purchasing gold on
Russia, was not complicated and would not financial report for the first half of 2021. foreign and local markets at a 5% premium
require lengthy works, according to Kazakh SOCAR's net profit for the first half of over the London Metal Exchange price.
officials. 2021 amounted to AZN603mn (~$354mn) - The government is required to take

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