Page 10 - FSUOGM Week 18 2022

FSUOGM INVESTMENT FSUOGM

Litasco, based in Switzerland, is Lukoil’s trading arm (Image: Litasco)

They also indicated that the bank’s decision had Russian interests.
far-reaching effects that were posing significant Even so, the bank’s decision to deny clearing
challenges to operations. services for derivative trades signals that Litasco
As of press time, the report could not be con- will come under closer scrutiny because of its
firmed. Neither Litasco nor the bank responded affiliation with Lukoil.
to Argus’ requests for comments. Vagit Alekperov, Lukoil’s long-time presi-
Litasco has been under no small amount dent, resigned from his post last month after
of pressure in the wake of Russia’s invasion of being named as a target of the UK and EU
Ukraine in late February. At least one oil bro- sanctions regimes. Alekperov did not explain
kerage has stopped working with the company the reason for his departure, but an unnamed
to carry out physical and derivatives trades since source familiar with the matter told Reuters that
the beginning of March, Argus noted. he had stepped down so that his status as a target
Nevertheless, the trader has found ways to of the trade restrictions would not affect Lukoil’s
continue operating in Europe even after the operations.
introduction of policies designed to cut trade Lukoil has come closer than any other Rus-
with Russia – and despite public pressure to sian oil company to speaking out against the
sever ties with Russian firms. Kremlin’s war on Ukraine. In early March, the
It has, for example, been able to take advan- firm’s board of directors issued statement urging
tage of its status as a Swiss-based subsidiary of a an end to the conflict and saying: “We strongly
Russian company to charter tankers to deliver support a lasting ceasefire and a settlement of
oil to the UK, despite that country’s formal problems through serious negotiations and
ban on ships owned, operated or chartered by diplomacy.” ™

PERFORMANCE
Gazprom says production fell by 2.5%,

non-CIS exports by 26.9% y/y in 4M-2022

GAZPROM, Russia’s state-controlled natural “Gazprom continues to supply gas in accord-
gas giant, reported on Sunday, May 1 that its ance with confirmed customer requests and in
production had dropped slightly in the first four full compliance with contractual obligations.”
months of 2022, while exports sank significantly The statement did not refer directly to any of
during the same period. the challenges that have arisen in Europe, tra-
In a statement, Gazprom said it had extracted ditionally the main destination for Russian gas
175.4bn cubic metres of gas between January exports, since the Kremlin’s invasion of Ukraine
and April, down by 2.5% year on year. It also in late February. It did note, though, that Gaz-
said it had delivered 50.1 bcm of gas to custom- prom faced a “serious challenge” in keeping
ers outside the Commonwealth of Independent European stock levels up because of technologi-
States (CIS), down by 26.9% y/y. cal constraints on daily injection levels.
The state-run company stressed that the “[The] total amount of gas available on
decline in exports had not resulted from any the European market is highly dependent on
problems or contractual breaches, saying: demand in the growing Asian market,” it said.

P10 www. NEWSBASE .com Week 18 05•May•2021