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“The situation on the European gas market is abysmal, with prices and volumes both off sharply,” he said in a research note on July 14. “In short, the second and third quarters of 2020 will probably be the worst quarters for Gazprom’s European gas export revenue in over 15 years.”
Gazprom is Europe’s top supplier, covering nearly 40% of
its total demand. But over the past year it has faced stiff competition from new LNG suppliers, namely in the US. LNG imports are generally cheaper than Gazprom’s gas at present, as around a third of the Russian firm’s supplies are wholly or partially indexed to oil prices, with a time lag of around six to nine months. This makes them uncompetitive after a sudden price collapse such as the one in March.
Gazprom’s core earnings (Ebitda) amounted to $7.4bn in the three months, surpassing BCS’ forecast by 11%. Its European export sales revenues were also 8% above the investment firm’s guidance.
Besides the fallout from the coronavirus, Gazprom faces another threat from Washington lawmakers. A bill that would impose additional sanctions on the company’s Nord
“The second and third quarters
of 2020 will probably be the worst quarters for Gazprom’s European gas export revenue in over 15 years”
Stream 2 pipeline is currently making its way through US Congress, punishing any international firms assisting with construction.
As NewsBase has reported, it is questionable whether US efforts could prevent Gazprom from finishing the pipeline’s remaining 6%. Gazprom already has two Russian pipelaying vessels in the area.
Furthermore, Germany strongly opposes US interference. The chairman of the economic and energy committee of Germany’s Bundestag, Klaus Ernst, addressed US senators and representatives in a letter this week, urging them not to support the sanctions bill.
“As elected representatives of the American people, you undoubtedly and rightfully resist all attempts to interfere in the internal affairs of Texas, Wisconsin or Pennsylvania,” he said. “Europe, in turn, expects that you will respect
the decisions that were taken democratically within the European Union.”
“The extraterritorial application of US sanctions undermines the transatlantic partnership and damages the reputation of the US and the US economy in the EU,” he continued.
Ucom tries to block Team’s acquisition of Veon Armenia
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under the Beeline brand.
Former Ucom director-general Hayk Yesayan and former deputy director and strategic director Alexander Yesayan quit in April. At the time, RFE/RL reported that the brothers were unhappy the deal would dilute their 6% shareholding in Ucom.
They then went on to found Team and entered into talks with Veon that resulted in a deal under which Team would acquire 100% of Veon Armenia.
Team asked the State Commission of the Protection of Economic Competition (SCPEC) to approve the deal in June. Ucom said in a statement published on its website that on June 26 the SCPEC had approached Ucom to clarify its position on the deal. Ucom then called on the competition authority to reject the deal.
Ucom argued that it was unfair competition, saying that Team’s management had used undisclosed confidential information. It accuses the Yesayans of breaching their fiduciary duty towards Ucom by using confidential information when negotiating the deal with VEON Armenia.
“We find that as a result of the revelations and use of confidential information belonging to Ucom by the Yesayans, Team LLC was able to negotiate and sign a memorandum within just a month, and is going to acquire the shares of Veon Armenia CJSC, while similar deals’ negotiations last
for months, if not longer. These actions ... are both unfair competition and prohibited,” the statement said.
Ucom said it was intending to “defend its violated rights” both in Armenia and abroad, and is currently discussing possible international legal proceedings with its legal advisers.
rmenian telco Ucom is seeking to block an attempt by rival Team – set up earlier this year by two former Ucom
executives – to buy Veon Armenia, which operates
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