Page 129 - RusRPTOct23

Mikhelson noted that total capital investments in the Arctic LNG-2 plant will increase due to energy supply reconfiguration but will still be 20–25% lower than those of the Yamal LNG project. The increased investment will be covered by shareholders. Additionally, the Cryogas-Vysotsk LNG plant, a joint project of Novatek and Gazprombank, is expected to see a capacity increase of 10–15% to 900,000 tonnes by the end of March 2024.
● Lukoil
Lukoil's trading unit Litasco SA is launching operations in Mexico as the oil giant seeks new markets for Russian products under widespread sanctions. Expansion into Mexico, which is the largest fuel importer in Latin America, will open up a new market for Russian fuel. Although Mexico has only imported from Russia once since the Ukraine conflict began, Russian supplies are finding their way into other Latin American countries. Brazil is importing record amounts of diesel fuel from the country. Argentina is also buying naphtha and diesel fuel. If these efforts succeed, Russia could displace the US from its position as Mexico's primary fuel supplier. The US currently accounts for 90% of Mexico's gasoline and diesel imports.
9.2.2 Automotive corporate news
Russian automobile manufacturer Avtotor has launched production of China’s Kaiyi X3 and Kaiyi X3 Pro crossovers at its plant in Kaliningrad, the automaker’s press service said. "Production of Kaiyi X3 and Kaiyi X3 Pro crossovers has started at Avtotor’s Kaliningrad automobile plant. The first vehicles have rolled off of the passenger car production line. Compact crossovers complement the model range under the Kaiyi brand produced by Avtotor since January 2023," the press service said. Plans call for offering Russian motorists four models under the Kaiyi brand this year. Use of local components is provided for under the relevant strategic cooperation agreement with a phased increase in the localization level.
9.2.3 Aviation corporate news
Despite navigating international sanctions and route limitations, Aeroflot is setting its sights on carrying a whopping 47mn passengers in 2024. Aeroflot has strategically realigned its route network, with a heightened emphasis on nations that maintain amicable relations with Russia. The airline anticipates that a substantial 20% of the passenger demand will stem from international travel. Amidst the prevailing challenges, Aeroflot has observed encouraging trends, particularly in the realms of leisure and summer travel. Notably, the airline does not foresee substantial increases in ticket prices, even in the face of inflationary pressures and rising operational costs.
129 RUSSIA Country Report October 2023 www.intellinews.com