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embarrassments​ in the Arctic region. The p​ rovision for a $2bn fine has crashed the 1H20 profit​, while ​shareholder tensions have renewed over the dividends​. The legal action against the company by the watchdog was unexpected as previously in August the Ministry of Natural Resources said it would regulate paying the damages with Norilsk Nickel outside of court, Vedomosti reminds. However, Rosprirodnadzor officials claim that NorNickel failed to provide a clear plan of mitigating the damage, not to start any voluntary compensation payments. Previously the company made a provision of $2.1bn for the possible fine, even though its own estimates of the damages were much lower than the official ones.
Russia's ​United Company Rusal​ aluminium major has announced it will issue Russian shares and a respective prospectus, ​with the registration as an international company in Russia now expected on September 25, 2020. As reported by ​bne IntelliNews,​ previously sanctioned Rusal of tycoon Oleg Deripaska in 2019 has ​completed re-registration in a "Russian offshore"​ or Special Administrative District (SAR or SAD) of Oktyabrsky Island. "The company had previously expected to register as an international company in Russia by the end of September, so the updated timing is in line with the company’s previous release," VTB Capital (VTBC) wrote on September 14. The bank reminds that re-registration in Russia would allow Rusal not to pay 5% taxes from the dividends which the company receives from Norilsk Nickel metals major. Given this, VTBC estimates that Rusal might save $15mn in 2020 on the dividend tax, which is equal to 2% of 2020 forecasted EBITDA. The investment bank maintained a Buy recommendation on the name. To remind, Rusal reported a ​58.5% year-on-year drop in Ebitda under IFRS​ in 1H20 to $219mn on a 13% aluminium price plunge amid the coronavirus (COVID-19) pandemic. Rusal is struggling in the bad market, which increases its ​dependence on cash from dividends from Norilsk Nickel​, another Russian metals major.
9.2.12​ Transport corporate news
Russian road transportation major ​Globaltruck​ reported a 29% year-on-year decline in Ebitda under IFRS for 1H20 to RUB404mn ($5.34mn), missing the expectations of BCS Global Markets analysts by 10%. As reported by ​bne IntelliNews,​ previously in 1Q20 Globaltruck posted mixed results, but ​showed encouraging signs in the growing Express delivery segment​. In 1H20 the company's results were "visibly affected by COVID – Ebitda margin down 3.7pp [percentage points] on price pressure and higher costs. Yet debt position continues to improve and management delivered on targeted forwarding & cargo pipeline expansion," BCS Global Markets commented on September 3. At the beginning of 2Q, cross-border shipments de facto stopped, domestic shipments were under pressure, while customers' price sensitivity and competition increased, BCS GM reminds.
158 ​RUSSIA Country Report​ October 2020 ​ ​www.intellinews.com