Page 131 - RusRPTJun19

company Novatek, Kommersant daily reported on May 20 citing unnamed sources close to the deal. Reportedly, the construction of four tankers will be booked from Zvezda shipyard, controlled by Rosneftegaz, the holding company of Russia's largest state oil producer Rosneft. The major deal would be financed by VEB.RF state development institution (former Vnesheconombank). The deal was awarded to Sovkomflot and Zvezda with no competitive bids, and it is not clear whether Novatek will extend the order. In April Novatek and Sovkomflot closed a deal on exploitation of the pilot tanker for 25 years, with the vessel to be ready by 2022. Previous reports suggested that Novatek could avoid ordering LNG tankers from Zvezda, as the government allowed it to employ foreign tankers on the strategic Northern Sea Route. But in April Vladimir Putin was requested to support a creation of Arctic hydrocarbon extraction cluster by the "Oil Tsar" Igor Sechin, the head of Rosneft, Rosneftegaz, and long-time ally of the president. Novatek called an open tender for 15 tankers, in which such international shippers as NYK, MOL, and Dynagas planned to participate. Previously Novatek has signed an agreement with Zvezda on construction of 15 tankers, but withdrew from the deal, as the shipyard's pricing is 20% above the market, unnamed sources told Vedomosti daily in March. Sources of the Kommersant claim that the decision to directly award the tender for four more tankers to Sovkomflot and Zvezda was lobbied by the Deputy Prime Minister Yury Borisov. The deal is estimated at about $5bn, with the difference in price to foreign models (such as South Korea) of up to 20% to be financed by the government.
Russian Railways (RZD) set the price for possible sale of 50%-plus-2 shares in Transcontainer container operator at RUB36.2bn, which makes the lower band of valuation of the company estimated by PricewaterhouseCoopers, Vedomosti daily and Reuters reported citing the head of the company Andrei Starkov. Last month the Russian government outlined the rules for the sale of the controlling stake in Transcontainer, one of the most valuable transportation assets in Russia, on a market that saw a number of large deals in 2018. Trancontainer has been delayed several times in botched privatisation efforts. The possible price is below the market, as capitalisation of the company in Moscow stands at about RUB89bn, but it would allow the company to attract a "wide number of investors," according to Starkov, adding that the auction of the RZD's stake is planned for summer 2019. In 2018 Russian billionaires Roman Abramovich and Alexander Abramov already acquired 24.5% stake in Transcontainer from RZD and reportedly intended to seek a controlling stake in one of Russia's most valuable transportation assets. Last year maritime transportation major Fesco that controls Far East Sea Port terminal sold 25.07% in Transcontainer to state- controlled VTB Bank, also a largest creditor of the container operator. Fesco's largest shareholder with 32.5% is Summa Group of jailed Kremlin-connected oligarch and Ziyavudin Magomedov, who since his arrest in 2018 was pressured to sell a number of major transportation assets. Unconfirmed reports claimed that VTB Bank could re-sell the stake to strategic investors Roman Abramovich and Vladimir Lisin. Transcontainer, which controls over 45% of Russian rail container turnover, was spun off as an independent entity in 2006.
9.2.13 Other sector corporate news
Russian billionaire Mikhail Gutseriev and his son Said increased a stake in the Kuzbass Fuel Company (KTK) from 2.12% to 18.9%, while their long- term partners acquired another 48% in the company which is one of Russia's largest producers and exporters of thermal coal, RBC business daily reported
131 RUSSIA Country Report June 2019 www.intellinews.com