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but Lukoil's PSAs are only being allowed to supply gas to the domestic market this year," Sberbank CIB reminds on August 31. The bank warned that "the issues with the Uzbek PSAs appear to be much more considerable than supposed," while the "collapse in Lukoil's Uzbek PSA volumes suggests that it faces material issues with exports to both countries".
● Other
Russian regional oil major Tatneft could lose RUB80bn ($1bn) as a result of the discussed changes to oil taxation, Tass reported citing the CEO of the company, Nail Maganov. As followed by bne IntelliNews, Tatneft is the company most exposed to the proposed raising of the Mineral Extraction Tax (MET) on high viscous oil and other proposed reforms to the taxation of the oil sector. VTB Capital (VTBC) on September 25 calculated that Tatneft could lose $0.5bn (RUB38bn) in 2021, should the depletion and high viscosity MET reliefs, and the export duty reliefs, be removed, as well as the tax break for the Alshachinskoye oilfield being cancelled completely.
9.2.2 Automotive corporate news
After a rebound in July, Russia's car sales (excluding Mercedes and BMW ) fell 0.5% y/y to 137,517 units, according to the latest data from the Association of European Businesses (AEB). YTD sales were down 17% y/y to 880,198 units. We believe that the market outlook remains challenging, as the recent ruble depreciation will likely lead to higher prices in the coming months, which could hurt demand further. We continue to stick to our forecast that the market will decline 18% y/y in FY20F.
Sollers saw its UAZ sales falling 10% y/y to 2,910 units in August and 22% y/y to 17,813 units in 8mo20. Ford Transit sales (consolidated by Sollers) were also down 10% y/y to 1,112 units in August and flat y/y at 7,247 units in 8mo20. We continue to see Sollers' valuation as undemanding, but the stock lacks near term triggers, in our view.
AvtoVAZ as well as the AvtoVAZ/Renault/Nissan/Mitsubishi Group, remained the market leaders, with market shares of 23% and 38% in January-August, respectively. AvtoVAZ's sales fell 5% y/y to 28,621 units in August and 18% y/y to 192,397 units in 8mo20.
Among other Russian producers, GAZ's LCV sales fell 27% y/y to 3,856 units in August and 25% y/y to 27,296 units in 8mo20.
The world's cheapest e-car Zetta cut off from Russian state financing.
The serial production of the first domestically made electric car Zetta (Zero Emission Terra Transport Asset) has been postponed as the Russian
143 RUSSIA Country Report October 2020 www.intellinews.com
