Page 91 - RusRPTNov18

Nord Stream 2 gas pipeline project, especially now when European consumers' demands are growing. "What will happen next? Will Europe buy gas, which is 30% more expensive, including from the USA? They can, of course, but it is not smart, you know? This would be squandering and reducing their own competitiveness in the world," he noted.
Russia and Qatar are considering cooperating in $12bn worth of joint projects, Russia's Minister of Energy Alexander Novak told Rossiya 24 TV channel, as cited by Reuters. Novak made the same estimate during his visit to Doha in April 2017 . Novak estimated that Qatar and Russian Fund for Direct Investment (RDIF) have already invested over $2.5bn in joint Russian projects and reminded that Qatar Investment Authority finalised the acquisition of 18.93% in country's largest oil company Rosneft . Apart from Rosneft, QIA participated in the IPO of now sanctioned energy and metals major En+ . The fund is also active in Russian aviation assets, as it acquired a stake in major airport Pulkovo and together with RDIF and other investors could buy into Russia's largest air carrier Aeroflot .
9.1.2 Automotive sector news
Sales of cars and light commercial vehicles (LCVs) in Russia increased by 6.2% year-on-year in September and by 14.9% y/y for January-September 2018 to 0.157mn units and 1.3mn units, respectively, according to the latest data by the Association of European Businesses (AEB).
The growth rate of the car market slides into the two-digit zone, as 2018 marks the second year of market recovery exhausting the base effect. But the front-loaded purchases of cars are expected to continue until the end of the year, with consumers avoiding higher prices on weaker ruble and VAT hike.
"Total market sales in September continue to show positive momentum, on the backdrop of a strong performance in the same period of the previous year," the head of AEB Joerg Schreiber commented.
The AEB even revised the sales forecast upward to 1.8mn units in 2018 or 13% y/y growth "in view of the current market conditions, and the expected VAT increase from January next."
Previously VTB Capital expected 11% y/y market growth , expecting sales growth rate to slow down somewhat in due to price increases and the less
91 RUSSIA Country Report November 2018 www.intellinews.com