Page 139 - RusRPTFeb23

price of $450/tonne and hence higher export duties for complex and phosphate fertiliser producers, while producers of nitrogen fertilisers have not had to pay export duties at the recent prices.
According to our latest estimates, the additional tax burden resulting from the introduction of the new duties this year will amount to 10% of EBITDA before the duties for PhosAgro and 7% for Acron, as we expect nitrogen fertiliser prices to rise over the course of the year, since we anticipate a rise in natural gas prices.
“We currently see this news as neutral for PhosAgro and Acron, as the proposal is only at the negotiation stage. We maintain a cautious outlook for the sector and reiterate our HOLD ratings for both stocks,” Sberbank CIB said in a note.
9.1.12 Transport sector news
● Planes
Russian national air carrier Aeroflot has bought 10 long-haul Boeing 777-300ER aircraft from an Irish leasing company, Kommersant daily reported citing an announcement by the company. As closely followed by bne IntelliNews, under Western sanctions Aeroflot is set to become the main vehicle for the government's attempt to steer the aviation industry from its crisis. Aeroflot is set to remain the largest recipient of state aid and has committed to keep domestic jet production afloat by ordering over 300 jets. Given the distribution of state support, it is likely that Aeroflot will also be at the forefront of acquiring foreign jets for internal operations. The 10 aircraft bought out by the state carrier have been leased since 2013 and 2014.
Russian Transport Minister Vitaly Savelyev discussed the 2022 results for the Russian aviation industry, as well as the plans for 2023. Here are the key takeaways:
> The passenger traffic (PAX) of Russian air carriers totaled more than 95mn passengers in 2022. The PAX target for 2023 is 101mn.
> The Russian passenger aircraft fleet contains 1,164 aircraft, enough to fully cover demand for domestic and international flights.
> The air transportation industry received R174bn in subsidies from the federal budget in 2022, a record-high amount. This year, subsidies are to be reduced proportionally to the number of aircraft that were bought out from foreign lessors.
Additionally, according to Kommersant's sources in the Transport Ministry, there were previously plans to prolong the domestic flight subsidy program (in place from November 2022 through March 2023) and increase the subsidies allocated for the program (currently R25bn). Kommersant's sources no longer expect this to happen.
139 RUSSIA Country Report February 2023 www.intellinews.com