Page 112 - RUSRptApr17

Rosneft would repay the terminal costs, with annual payments of RUB 1.6bn ($30mn) over 30 years. The terminal construction project has yet to be agreed with Rosmorport, Vedomosti writes.
The Latvian port of Ventspils has been asked to store and handle delivery of pipes for Nord Stream 2, the controversial Russian gas pipeline project, the chairman of the port said on April 20. The project to add another line to the Nord Stream route, which would carry 63bn cubic metres of gas per year under the Baltic Sea directly to Germany, is fiercely opposed by several Central and Eastern European countries. They claim the project willl only raise already high dependence on Russian supplies. The offer to Ventspils appears set to put the port and the Latvian government at odds. Some €25mn in revenue is at stake, said Aivars Lembergs, the Russia-linked oligarch who is the port's chairman, as well as mayor of Ventspils.
9.2.2 Automotive corporate news
Japan’s Hyundai plans to start production of engines in Russia, Deputy Minister of Industry Alexander Morozov told reporters on April 4. "Hyundai has no engine production facilities in Russia now and they are viewing options of launching their production. They have two options: the first one is to build an engine plant from scratch and the second one is to place a required volume at an engine plant, for example, in Kaluga (VW), Alabuga (Ford), or at AvtoVaz," TASS quoted Morozov as saying.
Russian heavy vehicle and engine producer Kamaz increased its sales by 29% in the first quarter of 2017 to 6,744 trucks, the company said on April 10. Domestic sales rose by 34% (to 5,600 trucks) and export sales by 11% (to 1,134). Overall the truck market expanded by 25% in the reporting quarter, the company said, estimating its market share at 56.7%. The IFRS revenues of Kamaz in the quarter jumped 47% to RUB28.6bn (€471mn). The revival of the truck market is due to the recovery in the segments of commercial transportation and construction, as well as broader macro stabilisation.
Russian car assembler Sollers reported net IFRS profit of RUB1.62bn (€26.8bn/$28.6mn) in 2016 , the company said on April 11. Despite the 48% year-on-year decline in net profit, VTB Capital said on April 12 that “the bottom line notably beat our forecasts on the back of a turnaround at the Mazda Sollers joint venture”. In addition, the decline in net profit was due to FX-related effects on the ruble value of the $135mn option Sollers holds in the joint venture with Ford, which was boosted by over RUB2bn in 2015 due to ruble weakness and led to RUB1.3bn loss on ruble gains in 2016. The company managed to maintain “decent profitability and relatively low leverage”, VTB Capital said, although the net debt/Ebitda ratio of 1.3x still exceeds 1.0x, a threshold set by Sollers for distributing earnings. This points to “highly unlikely” probability of dividends for 2016, in the bank’s view.
9.2.3 Aviation corporate news
Russian national air carrier Aeroflot and S7 carrier in 2016 made into top-3 fastest growing airlines in Europe , according to the Flight Airline Business survey including 21 European companies cited by RBC business portal on March 31. Falling behind Icelandair with 21.7% passenger turnover growth, Aeroflot and S7 closed the top 3 with 11.6% turnover growth (82.7mn
112 RUSSIA Country Report April 2017 www.intellinews.com