Page 6 - bne magazine September 2020 russia melting

6 I The Month That Was bne September 2020
Business
Eastern Europe
Russian metals giant Norilsk Nickel reported net profit that crashed to just RUB1.2bn ($16.4mn) in January- June from RUB196.2bn ($2.7bn) in the same period of 2019. The company had to create a reserve fund to cope with a $2bn fine following a huge oil spill in July at its facilities in Russia’s Far North.
Russian petrochemical major Sibur has started the construction of
the major gas-chemical complex Amursk, worth $10bn-11bn, in the Far East district. The plant is planned to be completed by 2024-2025, with annual total capacity of 2.3mn tonnes of polyethylene and 0.4mn tonnes of polypropylene to be produced from 3.5mn tonnes of liquefied hydrogen gas supplied by state major Gazprom.
Russia's Federal Antimonopoly Service has initiated a case against chocolate producer Lindt because the quality of products in Russia is not the same as those it sells in the rest of Europe. The quality of soaps Ariel, Persil and some chocolates were different, FAS said.
Ukraine pays one of the highest electricity prices in Europe, according to the EU: €46.9 per MWh, vs European average €33.5 per MWh. Greece pays the most: €50 per MWh, Norway and Sweden the least: €17 per MWh.
Central Europe
The Ukrainian owners of Hungary’s largest steelworks ISD Dunaferr are in the final stages of a deal to sell to an unnamed Russian investor, according to opposition MP from the region Gergely Kallo. The talks were initiated by the local leader of Hungary's right- wing Jobbik party after management suddenly withdrew from the collective agreement with unions.
Hungary’s new car sales down 25% by July. Registrations reached 12,045 in
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July, down 21% year on year, according to figures from the car importers association MGE. In the first seven months, sales
fell by 25% to 67,725. Sales of used cars in July were 12,196, a 10% y/y decline, but rising close to pre-pandemic levels. In the January-July period used car sales declined 17% to 77,280.
Chinese state corporation CITIC is negotiating the sale of a 49.9% stake in Czech no-frills airline Smartwings, which also owns 98% of Czech Airlines (CSA). The airline is facing financial difficulties and the Chinese owners
are not willing to lend a helping hand, sources said.
The PPF Group, the largest
private investment firm in CEE owned by Czech billionaire Petr Kellner, is considering the sale of assets in Telenor. The Norwegian telecommunication group sold its subsidiaries in Hungary, Bulgaria, Montenegro and Serbia to PPF Group in March 2018 for €2.8bn.
Southeast Europe
Turkey found a giant offshore natural gas deposit of 320bn cubic meters (bcm) in the Black Sea worth $80bn that could meet all its energy needs for decades, said Turkish president Recep Tayyip Erdogan on August 24. Turkey
is almost entirely reliant on imports
to meet its energy needs. Last year, its energy import bill stood at $41bn, which has caused current account problems.
Turkish white goods sales increased by 58% on an annual basis in July thanks to cheap loans provided by local banks, the wedding season and strong home sales. The Turkish white goods industry’s total sales (domestic sales and exports combined) rose by 28% y/y to around 3mn units in the month. The white goods market contracted 11.4% y/y in April and 8.5% y/y in May, but sales bounced back in June, rising 14.5% on an annual basis.
Italian company IVECO Defence Vehicles has started building a truck assembly plant in Romania’s Dambovita County. The investment is worth around €50mn and
will create 200 direct jobs in the production facility in the first stage, said Prime Minister Ludovic Orban, who attended the launch ceremony.
23.
Eurasia
Kazakhstan’s first polypropylene plant is to be launched by 3Q21, project operator Kazakhstan Petrochemical Industries (KPI) said. KPI is targeting an annual production of 500,000 tonnes of polypropylene at the plant making among the world’s largest polypropylene producers.
Production of gas condensate at the South Pars oil and gas condensate field in Iran has increased by 87% since 2013. The entirety of South Pars in the Persian Gulf, shared by Iran and Qatar, is thought to make up the largest gas field in the world, but development in Iranian waters has been hampered by US sanctions.
Iranian automaker SAIPA (Société Anonyme Iranienne de Production des Automobiles) has bid farewell
to production of Iran’s most popular car, the Pride. The “super budget” subcompact, a copy of the old Korean Kia Pride, has been produced in Iran since 1993 in various formats including as a two-door pickup and sedan.