Page 14 - FSUOGM Week 10 2021

FSUOGM POLICY FSUOGM

Russia proposes small-LNG incentives

RUSSIA RUSSIA’S energy ministry has proposed more produces gas piston engines, absorption refrig-
incentives to spur development in the small- erators and isothermal tanks for cryogenic prod-
The ministry has scale domestic LNG sector, sources told Mos- ucts itself.
proposed applying cow-based business newspaper Vedomosti on Russia is keen to develop the market for gas
zero import duty on March 5. as a vehicle fuel, given its lower cost and environ-
overseas-produced The ministry has proposed applying zero mental benefits versus conventional motor fuels.
equipment. import duty on overseas-produced equipment The government has already rolled out a number
needed for small-scale liquefaction plants, and of subsidies in recent years to encourage motor-
for vehicles that run on the super-cooled fuel, ists to convert their cars to run on the fuel. The
a source told Vedomosti. The concession will government covers 60% of the cost of converting
only be active for three to four years, after which a vehicle to operate using gas, and state-owned
period it is hoped that Russia will have devel- Gazprom has agreed to bear a further 30% of the
oped this equipment itself, forgoing the need for bill, leaving the owner responsible for only 10%.
imports. For cars and light transport, compressed nat-
Russian enterprises are already capable ural gas (CNG) is seen as the more cost-effective
of producing the bulk of technical products option, whereas LNG is seen as a better solution
needed for small-scale LNG, although there are for heavier, long-haul transport and small-scale
still some items that must be sought out over- power generation and industrial uses.
seas. The ministry has called for an end to duties While Gazprom is the dominant player in
on imports of quick couplings, pipeline fittings small-scale LNG, rival Novatek last August
for cryogenic units and magnetic materials, for launched its own mini-liquefaction plant in
example. Duties currently amount to 15% of Magnitogorsk in the Chelyabinsk region, for
the customs value. In contrast, Russia already serving a network of filling stations in the area. ™

PROJECTS & COMPANIES

Rosneft sues Bloomberg, Russian

outlets for unknown reasons

RUSSIA RUSSIAN state oil company Rosneft has Rosneft has not confirmed filing the lawsuits
reportedly filed lawsuits in Moscow against against the three news agencies. But in a state-
Rosneft has a long Russian news outlets Novaya Gazeta and ISto- ment on its website on March 3, it vowed “to
history of suing ries for unknown reasons, as well as US media supress all attempts to publish and disseminate
newspapers for group Bloomberg, RIA Novosti reported on information that does not correspond to reality,
defamation. March 3. aimed at damaging the company, and to defend
RIA was citing filings on the website of the its interests in court.”
Moscow arbitration court. The statements of Rosneft has a long history of suing newspa-
claim referred to the “establishment of facts of pers for defamation. In 2016 it demanded that
legal significance,” according to the news agency. RBC retract an article about the company and
Novaya Gazeta has said it is unaware of the compensate it RUB3bn in damages, although
claim’s substance, as it has not yet been presented that court only ruled in favour of the retraction.
with the lawsuit. On February 20, the independ- The following year, it filed a lawsuit against busi-
ent newspaper published an article by journalist ness newspaper Kommersant, but withdrew its
Maxim Averbukh, in which he analysed Ros- claim after an apology from the author of the
neft’s financial results and disputed CEO Igor offending article.
Sechin’s claim that it was the only oil company in In 2020 it launched a RUB43bn ($0.6bn) def-
the world to make a profit in 2020. amation case against Russian news agency RBC,
IStories journalist Roman Shleynov has said over an article that claimed that one of Rosneft’s
he assumes the lawsuit against his employer is security arms had received a stake in its Vene-
connected with an article published on February zuelan projects, which it previously reported
8, in which he reported that Rosneft had bought selling. It offloaded its Venezuelan operations in
a stake in Italian tyre manufacturer Pirelli. Ros- the hope of getting US sanctions lifted that had
neft has denied this, although information about been imposed on two subsidiaries caught trad-
the deal is on its website. ing Venezuelan oil.
Bloomberg has not commented on the Rosneft later withdrew the suit after RBC
matter. apologised. ™

P14 www. NEWSBASE .com Week 10 10•March•2021