Page 94 - RusRPTFeb22

The agency estimates that this year, sales are to grow more than twofold, to RUB703bn, while the total number of orders is to increase 2.4x y/y (to 558mn). Some 80% of the market was held by six leading players: O2O holding (includes Samokat and Delivery Club), Sbermarket, Vkusvil, X5 Group, Yandex and Severgroup (Utkonos and Lenta). The key growth channel was express delivery, while the share of stock-up services (delivery in over two hours) declined to 12% of total orders as of YE21 (-11pp y/y).
Online retailing in FMCG goods, and food in particular, is the most rapidly developing segment of e-commerce in Russia, with its growth being boosted due to the active investments in foodtech and aggressive roll-out by both major ecosystems (Sber, Yandex) and traditional retailers (Magnit, X5, Vkusvill). By 2026F, the e-grocery market is set to reach RUB2.5tn, or some 10% of our food retail forecast vs. the current penetration of 2%, which is ahead the penetration level of DM peers. The three leading players are X5, Sbermarket and Vkusvill, with market shares of some 15% each as of 9mo21, while Samokat is also catching up (over 10%). Analysts assume that the competition will continue to intensify in the next couple of years, with aggressive investments by market leaders, while traditional retailers are still going to face pressure from ecosystems.
Russian banks begin testing digital ruble payments. Combined reports from Bitcoin.com, East-West Digital News / January 27, 2022. While advocating a ban on crypto exchange, investment and mining in the country, Russia’s central bank has plans to launch its own digital currency. Having completed the prototype of the digital ruble platform in December, the monetary authority is now beginning to experiment with transactions. A dozen banks have been invited to join the first stage of the project’s pilot phase. The monetary authority plans to gradually expand the range of participants to include other financial service providers and types of transactions. Right now, the majority of Russian banks are gearing up to start testing the new digital currency, news agency TASS reported, citing exchanges with Promsvyazbank, Tinkoff and SKB Bank. After the customer-to-customer transactions, “the technical testing of C2B, B2C and B2B payments will begin. Based on the results of the piloting, Bank of Russia will start to introduce the digital ruble platform into commercial operation,” said a Promsvyazbank representative.
9.1.10 Utilities & Renewables sector news
System Operator released Russian power sector statistics for Dec and FY21. Power consumption rose 5.4% y/y in 2021 (to 1107TWh) and power production was up 6.3%. In December, consumption was up 4.2% y/y and production rose 4.8% y/y). Thermal production last year accounted for 61% of electricity production in Russia (of which 6% was on industrial own units), nuclear amounted to 20% and hydro contributed 19%. Pricing key – Bodes well for gencos. In our view, the key is pricing with spot prices rising 15.8% y/y
94 RUSSIA Country Report February 2022 www.intellinews.com