Page 71 - RusRPTJune18

participating EU states . However, on May 5 German announced it has started construction on its section of the pipeline.
The contract was granted to StroyGasNefteGas (STNG) controlled by Volga Group of billionaire, Kremlin insider and stoligarch Gennady Timchenko, Vedomosti said on May 3. Notably, Timchenko's company was appointed directly by the head of Gazprom Alexei Miller with no competitive bidding procedure in place. STNG has been Gazprom's largest contractor since 2016, with other contracts including Sila Sibiri and objects at the Chayandinskoye field.
9.1.2 Automotive sector news
The year-long recovery in automotive sales continued in April with Russia's car and light commercial vehicles (LCV) sales up 18% y/y to 152,425 units in April, the Association of European Businesses (AEB) reported on May 8.
Sales saw some acceleration from the March number, up 14% y/y, according to AEB that track sales. YTD sales were up 21% y/y to 452,509 units.
“The April data points to the continuation of the positive sales trend observable so far this year. However, we would refrain from being excessively upbeat at this point, as the recent ruble weakness might have pulled forward some demand among potential worries about future price increases. We also note that after two consecutive months of sharp declines, Sollers managed to increase its UAZ sales by 6% y/y in April. We remain cautious on the name, as the overall sales trend remains weak,” VTB Capital (VTBC) said in a note.
Market demand was still driven mostly by the mass brands with Russian names continuing to lead the way. The maker of the iconic Lada, Avtovaz , increased its sales 17% y/y in April, with its Lada brand remaining the market leader, with a 20.1% share.
Lada was followed by KIA (+22% y/y, 12.9% market share) and Hyundai (+16% y/y, 10.5% market share), AEB reports.
The premium brands were mixed again. Some brands increased their sales in April, including Lexus (+28% y/y), Volvo (+17% y/y), BMW (+15% y/y), Cadillac (+12% y/y), Mercedes-Benz (+6% y/y) and Porsche (+5% y/y). Meanwhile,
71 RUSSIA Country Report June 2018 www.intellinews.com