Page 111 - RusRPTNov23

Eurobonds with rights accounted for in the local perimeter through the local infrastructure both before and after the issuance of replacement bonds (SR), regardless of the will of the holders. Secondly, the “survey” does not ask whether the holder would like to exchange his securities for ZO (which, in fact, is the purpose of the exercise). Naturally, holders want to receive payments on their securities in any case, but most of them also probably want to have securities in liquid form and remove the risk of changing the method of payment execution in the future (see the example of Sibur). According to a recent statement by a representative of the Ministry of Finance, not a single applicant for an exemption from the “mandatory” issuance of EO has yet received it.
Let us note that Russian Railways does not have the main argument for “exemption” from the issue of 3000 bonds, which was imputed in Norilsk Nickel’s “survey” and, probably, was the reason for issuing Gazprom an exemption from the obligation to pay coupons to holders of non-exchanged Eurobonds remaining in the internal perimeter - the issuance of 3000 bonds will not affect payments in Euroclear, since they are not produced.
9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
Russia’s oil production increased by 10,000 barrels per day (bpd) on the month to 9.48mn bpd in September, the International Energy Agency (IEA) said in a report on October 12. Output of oil and condensate increased by 40,000 bpd on the month to 10.81mn bpd mainly because of higher production of oil condensate, the agency said. Oil production by OPEC+ increased by 450,000 bpd to 36.38mn bpd in the period, down by 540,000mn bpd as compared with the maximum output allowed by the oil agreement.
The IEA retained its forecast for global oil production in 2023 at a record of 101.6mn bpd. The agency raised its expectations for global oil demand to 2.3mn bpd from 2.2mn bpd. Commercial oil reserves of the Organization for Economic Cooperation and Development (OECD) countries declined by 6.5mn bpd in September, which is 105.3mn bpd below the average 5-year figure.
111 RUSSIA Country Report November 2023 www.intellinews.com