Page 102 - RusRPTNov19

companies but then the receipts are to be transferred to Transneft, Kommersant’s source close to the government commented.
Russia is considering alternative routes for the Nord Stream 2 gas pipeline to Germany via the Baltic Sea , as there is still no solution in sight for the permit stand-off with Denmark, Kommersant d aily reported on October 3 citing the President Vladimir Putin, the Minister of Energy Alexander Novak and the Chairman of Gazprom’s BoD Viktor Zubkov. As reported by bne IntelliNews, the contentious pipeline of Russian gas giant Gazprom risks an eight-month delay as the pipe-laying vessels approach Danish territorial waters, the only territory for which the construction permit has not been secured. Possible routes reportedly include the Swedish or Polish zones, with the former under consideration, according to Kommersant. The Swedish alternative would not only lead to higher costs, but would delay the project’s delivery by a year, as permission from Sweden and Germany would be necessary, according to sources of the daily.
Rosnedra has finished its inventory of Russian oil fields containing more than 5mnt of crude reserves , Vedomosti reports. Overall, there are 2,700 fields in Russia, with total reserves of 28.9bnt of oil, the paper writes, citing the Deputy Head of Rosnedra, Orest Kasparov. Strategic fields, which are being developed under PSAs and have received tax reliefs, were excluded from the inventory process. Thus, 593 oil fields (719 according to Interfax) with 17.2bnt of crude reserves were inventoried, reports the paper. However, the Ministry of Natural Resources and BP provided completely different estimates. The former reported back in September that Russian oil reserves were up 8% YoY in 2018 at 9.8bnt, while BP printed Russian crude reserves at 14.6bnt in its annual statistical review. The company includes condensate into the oil count and excludes economically unfeasible reserves, unlike the ministry. According to Rosnedra, 33% of fields turned out to be economically unfeasible, and 74% of such fields are located in the Urals Federal District. At the same time, 61% of economically efficient fields are located there as well.
Poland plans to stop importing gas from Russia within three years.
Pipeline gas from Russia will be replaced by liquefied natural gas from Qatar and the US and by pipeline gas from Norway, Peter Naimsky, Poland’s representative for Strategic Energy Infrastructure tells TASS. Referring to Poland’s current dependence on gas from Russia, he said: “This problem will be solved after 2022. All gas imports to Poland will be carried out from a different direction.”
9.1.2 Automotive sector news
Russia's car and LCV sales declined just 0.2% y/y to 157,129 units in September , which resulted in a YTD decline of 2% y/y to about 1.3mn units, according to the latest data from the Association of European Businesses (AEB).
Analysts believe some improvement was likely due to the increased government support in 2H19. However, consumer sentiment remains weak, so they project that FY19 sales will be slightly negative.
“We highlight the recent strong sales of the Ford Transit, which are now consolidated by Sollers (Buy; 12-mo TP RUB450, ETR 54%), along with some improvement in UAZ sales. This supports our positive view on the name (see
102 RUSSIA Country Report November 2019 www.intellinews.o