Page 135 - RusRPTOct20

RUB500bn ($6.4bn).
9.1.10 ​Utilities sector news
InterRAO has issued a press release that outlines its agreement with General Electric on the localisation and production of 6F.03 88 MW and GT13E2 210 MW combined cycle gas turbines​. The parties to the JV, Russian Gas Turbines (InterRAO is to own 51% and GE 49%), would use the production facility in Rybinsk and the GE gas turbine service centre in Kaluga as the base of the production line. InterRAO CEO Boris Kovalchuk called the move part of the company’s recently adopted medium-term strategy, which envisions entry into the energy machinery production business. He also noted that Russian Gas Turbines would supply not only the Russian market but "a series of export markets." Besides, the partnership would have the capacity to service any CCGT turbine in Russia. The market for CCGT servicing is growing, taking into consideration the rapid approach of the DPM1 CCGT turbine fleet to the 10-year age threshold in Russia.
9.1.11 ​Metallurgy & mining sector news
Russia’s Duma accepted the metal’s MET bill at second reading on
September 29​. MET change is now well anticipated by the street and should
not affect the sectoral investment case. On initial assessments, MNOD and
RUAL would be hit hardest by the law’s adoption, hitting M2M EBITDA by
4-7% and 2-4%, respectively. Duma accepted MET bill at the second reading.
Metal Expert reported. An exception was introduced for new projects that work
within the framework of agreements on the protection and promotion of
investment, on a subsurface area, the degree of depletion of reserves of which
is less than 1% as of 1 January 2021. For those projects, the MET tax will not
to be hiked. The third reading of the bill is scheduled for 30 September.
Russia’s Economic Development Ministry projects a 3% decrease in metals production in 2020 compared with 2019, ​according to the country’s social and economic development outlook for 2021 and the planned period of 2022 and 2023 presented by the ministry "The decline of metals production in 2020 in comparable prices is estimated at 3%," according to the outlook.
Nonferrous-metals industry will face difficulties in the export field due to growth of protectionism, the ministry believes. Development of ferrous industry will be restrained by low dynamics of the main sectors’ growth - consumers of products, mounting protectionism and trade disputes, as well as unstable situation on the global market of raw materials and metal products.
Meanwhile the investment portfolio of ten leading Russian companies operating in the nonferrous industry through 2023 is estimated at roughly 3
135 ​RUSSIA Country Report​ October 2020 ​ ​www.intellinews.com