Page 146 - RusRPTAug22

particularly affected NGL exports.
9.2.2 Automotive corporate news
Russia’s Avtovaz automaker will revive the classic three-door Lada Niva Legend, the sanctions-hit company announced on July 25. Known for its simplicity and durability since the Soviet period, the Niva Legend’s Classic 2022 configuration is hitting the market with a limited number of 1,800 vehicles and a price tag of 800,000 rubles ($13,600). Most of Avtovaz’s assembly lines stopped running after Western sanctions in retaliation to Russia’s invasion of Ukraine this year disrupted deliveries of foreign-made parts. Avtovaz president Maxim Sokolov had vowed earlier that 95% of the Lada Niva’s components would be domestically manufactured. The automaker’s announcement follows widespread reports of other Lada vehicles being produced without airbags and air conditioning systems in addition to the acute shortage of foreign components.
9.2.3 Aviation corporate news
Aeroflot released operating statistics for 2Q22. The group carried 8.7mn passengers in 2Q22 (down 22.4% y/y), passenger turnover reached 20.5bn RPK (down 13.7%). In June, turnover was down 9%, PAX down 19% – sizably better than in April (RPK down 20.4% y/y, PAX down 28%). Within 2Q22, we note a gradual recovery in May-June after a slump in April. The hit from closure of many international destinations and southern Russian airports translated into a decline in traffic, albeit not as deep as in the pandemic 2020. In the accompanying press- release, the company indicated that it gradually recovers its international passenger traffic and boasts better load factor. This year’s results to be propped up by subsidies. We think that local traffic will gradually recover and project next year’s Aeroflot’s turnover (c100bn RPK) at last year’s levels, however still 36% below pre-pandemic levels. Major cash injections in the form of subsidies and equity raising distort the picture for now. We think that despite the decline in volumes and ticket revenues, subsidies may keep 2Q22 and 1H22 financials around last year’s levels. Hence, we see a net loss on the bottom line in 1H22, although 3Q22 may be quite strong thanks to subsidies. We keep our Hold recommendation for Aeroflot.
9.2.4 Construction & Real estate corporate news
146 RUSSIA Country Report October 2020 www.intellinews.com
Samolet released its 2Q22 operating update as well as 1H22 financials on