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assets forced Mints to  sell his real estate investment company O1 Properties , which held the largest portfolio of Class A office space in Moscow. This was flagged as bringing uncertainty to O1 bondholders  and led  Standard & Poor's placing the developer on CreditWatch Negative . O1 Group could still restructure the issue to make up for the technical default, or propose a loan out offer on the bonds on May 8. Overall the holding O1 Group Finans has five issues of exchange bonds worth RUB87bn, and in 2017 the group failed to restructure the largest issue worth RUB40bn,  Vedomosti  daily reminds.
9.0  Industry & Sectors 9.1.1  Oil & gas sector news
Gas consumption in Europe and Turkey reached 190bcm in the first quarter of 2018  , growing 0.5% y/y (against 9.6% y/y in the first quarter 2017), Kommersant reports, citing Gazprom Export data. At the same time, gas consumption in power generation fell 12.7% y/y (or by 2.9bcm), while generation at hydroelectric power stations and wind power increased 20.5% y/y and 25.4% y/y, respectively, over the same period of time. Separately, the paper mentions that Norway and Algeria reduced their gas sales to the region, and LNG supplies decreased 4.3% y/y to 15.7bcm. Despite the modest growth in gas consumption in Europe and Turkey in the first quarter of 2018 , Gazprom increased gas supplies to the region 6.6% y/y in the first quarter of 2018 (or 5.9% y/y YTD).
The Organization of the Petroleum Exporting Countries (OPEC) and eleven states that joined the Opec+ oil output cut agreement could start increasing  extraction already in the third quarter of 2018, Russian Minister of Energy Alexander Novak told the press. Reportedly renewed talks on oil output levels will start on June 22 and Saudi Arabia is ready to join a decision to raise outputs. Previously in April Novak expressed a readiness to  continue coordinating the global oil market within the Opec+ framework , which has stabilised the oil prices  under the series of prolonged agreements to cut oil output. In November 2016 Opec+ deal has cut the oil output by 1.8mn barrels daily, targeting to push the oil reserves to below five-year average. Currently the reserves are 20mn below the target, Novak estimated. Reuters reported citing unnamed sources that Saudi Arabia and Russia plan to increase the output by about 1mn barrels daily. In April 2018 Opec countries extracted 31.9mn barrels of oil, Russia extracted 10.9mn barrels of oil. Analysts surveyed by  Vedomosti  daily believe that revising the Opec+ deal and growing shale oil extraction in the US could lead to a surplus of oil in the second half of 2018 and bring oil prices back from current $76 per barrel to the $60-$70 per barrel range. Most recently Russia's President Vladimir Putin argued that $60 per barrel is seen as a balanced oil price.
European Commission closed 6-year antimonopoly case against Gazprom . The European Commission closed its antimonopoly investigation against Gazprom, deciding that Gazprom's price offering adjusted after the market test was acceptable, according to the European Commission website. Poland can still challenge it, but the decision is unlikely to change. If Gazprom breaks its obligations, it may be fined by 10% of its global revenue
Russian oil majors have commissioned only 78 out of 128 refinery units
that were planned to be introduced in 2011-2027,  Kommersant  reported on May 29 citing a presentation of the Ministry of Energy. While   Lukoil ,   Gazprom Neft ,   Gazprom , and   Surgutneftegaz  (Surgut) have almost complied with the plans,   Rosneft  is said to push building 20 refining untis to 2027. Rosneft,
68  RUSSIA Country Report  June 2018    www.intellinews.com


































































































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