Page 14 - bne_newspaper_July_05_2019

Eastern Europe
July 5, 2019 www.intellinews.com I Page 14
Russia's government and CBR argue over paths to reignite growth
"I thought the CBR (Central Bank of Russia) is better in macroeconomics than that", the Minister of Economic Development Maxim Oreshkin wrote on his Facebook, commenting on the CBR's report which claims that without consumer crediting Russia would see zero GDP growth
in the disappointing first quarter.
A debate has broken out in the government over how to boost growth as the liberal team that
run Russia’s macroeconomic policy – Ministry
of Finance, Ministry of Economy and the Central Bank of Russia (CBR) – become frustrated at the slow pace of growth. Russia’s economy expanded by only 0.5% in the first quarter of this year, well
below even the most pessimistic forecasts.
Oreshkin urged the CBR to curb further growth of consumer crediting and focus on investment, rath- er than consumption, as the main driver of growth. Fixed investment has also underperformed, contracting for four months in a row in May.
Despite measures undertaken by the regulator
to cool the retail lending market, unsecured con- sumer loans in Russia keep growing, increasing by 25% year-on-year in January-March 2018, while nominal income is only growing by about 7%.
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Japanese investors buy into Arctic LNG-2 project of Russian Novatek
Russia's second-largest natural gas producer and global liquefied natural gas (LNG) runner-up Novatek sold a 10% in its second LNG project Arctic LNG-2 to a consortium of Japanese Mitsui and Jogmec, with total Japanese investment of $3bn.
The deal follows the first shipment of LNG to Japan from Novatek's first LNG project Yamal. Japan is one of the largest consumers of LNG in the Asian-Pacific region.
"An important agreement has just been signed that the Japanese partners Mitsui, Japan Oil, Gas and Metals National Corporation join the con-
struction of the Arctic LNG-2. Under that agree- ment investments will amount to almost $3bn," Russia's president Vladimir Putin said at a press conference held after the negotiations with Japa- nese Prime Minister Shinzo Abe in Osaka at the G20 meeting, as cited by Tass.
In April Novatek cashed in on selling 20% in Arctic LNG-2 to Chinese CNOOC and CNODC, with 10% stake sold to each. The Russian company has already closed the deal to sell a 10% stake in its French strategic partner energy major Total.
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