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The Regions This Week
June 2, 2017 www.intellinews.com I Page 6
Eastern Europe
Ukraine’s general budget revenues surged 85.7% year-on-year in April compared with 8.9% y/y growth in March. UAH29.7bn (€998mn) confiscated from ex-president Viktor Yanukovych and UAH10bn dividends from the central bank accounted for most of the growth.
Russia’s largest gold producer Polyus Gold will sell 10% to a consortium of Chinese investors led by Fosun International for $887mn. Other compa- nies participating in the deal include Zhaojin Min- ing and Hainan Mining.
Russian internet major Yandex will shut its offic- es in the Ukrainian cities of Kyiv and Odesa, citing the inclusion of Yandex.Ukraine on the sanctions list and the blockage of the company’s accounts. The announcement followed raids on Yandex’s offices by Ukrainian security forces investigating possible treasonable actions by staff.
Belarusian authorities are negotiating a new $700mn state loan with the Russian government to refinance the country’s debt. Minsk is also try- ing to negotiate a new $3bn support package with the IMF, but has little chance while the national leadership rejects implementing deep liberal eco- nomic reforms.
The foreign currency and gold reserves of the Central Bank of Russia went up by $1.1bn or 0.3% on the week of May 26 to reach $406.1bn, accord- ing to data published by the regulator. This marks the highest reserves level since December 2014.
The Ukrainian cabinet offered to allow sales of agriculture land only to individuals with Ukrain- ian citizenship and to a maximum of 200 hectares of land per person, Prime Minister Volodymyr Groysman said. The offer comes amid growing pressure from Ukraine’s main foreign creditor the IMF to liberalise the land market
Russia’s manufacturing sector rebounded to growth in May after a slip in April following one
of the strongest quarters in years. The seasonally adjusted Markit Russia Manufacturing Purchasing Managers’ Index (PMI) posted 52.4 in May, up from April’s reading of 50.8.
Arbitrators in Sweden rejected multi-billion ‘take-or-pay’ claims by Russian gas giant Gazprom against Ukrainian state gas company Naftogaz, signalling at least a partial victory for Kyiv in its longstanding energy dispute with Mos- cow. Russia had sought damages of almost $35bn for breach of the clause.
Russian President Vladimir Putin lifted restric- tions on operations of Turkish companies in Rus- sia as well as the ban on the employment of Turk- ish nationals in the country. The restrictions were part of the broader economic sanctions Moscow imposed against Ankara after the Turkish air force downed a Russian fighter-bomber near the Syrian border in November 2015.
Ukraine will reduce its consumption of anthracite coal by 3.5mn tonnes in 2017 amid a coking coal supply crisis caused by the rail blockade of the eastern Donbas region. Energy and Coal Industry Minister Ihor Nasalyk said the national energy sec- tor will use around 7mn tonnes of anthracite coal in 2017 following 10.5mn tonnes in 2016. The differ- ence should be covered with gas coal.
The National Bank of Belarus (NBB) will reduce its benchmark interest rate by 1pp to 13% on June 14. The regulator says the cut was possible due to positive inflation dynamics and favourable trends in the foreign exchange and deposit markets.
President Aleksander Lukashenko signed a decree cancelling a requirement for Belarusian banks
to sell foreign currency to individuals only after providing their passport data. The requirement was imposed during a financial and economic meltdown in November 2011, when the Belaru- sian ruble lost two thirds of its value and inflation reached 108.7%.