Page 15 - bne_newspaper_July_05_2019

Eastern Europe
July 5, 2019 www.intellinews.com I Page 15
Russia's Gazprom makes a move and pulls Nord Stream Danish permit request
Nord Stream 2 AG, the operator of Nord Stream 2 pipeline of Russian gas giant Gazprom, pulled the permit request to build the pipeline in Danish territorial waters from the Denmark Energy Agency (DEA). The permit has been pending for over two years, and opposition from Denmark has remained the last obstacle to completing the pipeline's maritime route.
Instead, Nord Stream 2 will now be built in the Danish Special Economic zone, in which the DEA has no authority to ban the pipeline.
Vedomosti daily reminded on June 28 that Gazprom's CEO Alexei Miller argued that "the point of no return" on Nord Stream has passed, as the pipeline is 60% built with over 80% of the
capital spending dispensed.
Previously in May, however, Miller admitted
that the Nord Stream 2 pipeline to Germany
via the Baltic Sea could be delayed, with the launch possibly suspended from the end of 2019 into earliest January 2020.
Gazprom is rushing to complete the pipeline before the start of 2020 prior to the expiry of the gas tran- sit agreement with Ukraine. Delays in construction of Nord Stream 2 would force Gazprom to re-nego- tiate the transit conditions. Should the necessary permits not be secured by August 2019, completing the pipeline in time is unlikely.
Read the full story here
Russian RDIF signs €300mn deal with Italy's DCP
The sovereign wealth fund, Russian Direct Investment Fund (RDIF), signed a deal with Italy’s state lender Cassa Depositi e Prestiti (CDP) to jointly invest €300mn ($338mn) in Italian firms looking to expand their businesses in Russia, Reuters said on July 4.
"CDP has a large portfolio of companies and we’ll be working closely with them to promote investments in Russia," Kirill Dmitriev told Reuters.
Dmitriev added that the upcoming visit of Russia's President Vladimir Putin to Italy "is going to play a big role in promoting additional
economic and investment cooperation projects between Italy and Russia."
As possible examples of investment, the head
of RDIF named Italian pasta maker Barilla expanding its business in Russia, with a deal expected in the third quarter of 2019, as well as tire manufacturer Pirelli continuing to modernise and expand its plant in Voronezh.
The fund will also work with Italy’s utility major Enel to develop more wind and alternative energy plants in the country. Enel Russia is one of the most active companies in Russia in the renewable energy segment.