Moscow press review for November 3, 2015
MOSCOW. Nov 3 (Interfax) - The following is a digest of Moscow newspapers published on November 3. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
The PMI for Russia's manufacturing sectors moved into positive territory for the first time since November 2014 in October, rising to 50.2, which indicates growth of business activity. The business confidence index based on Rosstat surveys also improved for the first time in nine months, by 1 percentage point to minus 6%. But the growth of production was supported by government defense contracts and businesses increasing inventories, rather than actual demand, analysts said (Vedomosti, p. 4).
OIL & GAS
Rosneft might manage to sell one of its troubled assets - a 50% stake in Polar Lights, the Russian state oil major's joint venture with ConocoPhillips. Sources said Tatneftegaz-Sever and the family of businessmen Yury and Alexei Khotin are interested in the company, which has depleted reserves and falling output. It has been unofficially valued at $200 million, but analysts believe it is actually worth no more than $50 million (Kommersant, p. 7).
UTILITIES
Gazprom and Viktor Vekselberg might again try to create Russia's biggest power company by merging Gazprom Energoholding (GEH) and T Plus, the energy company controlled by the billionaire. GEH is looking for a consultant for an "investment analysis of the assets of IES Holding" (now T Plus). A planned merger in 2011 was opposed by the Anti-Monopoly Service, and now the companies are even bigger (Vedomosti, p. 11).
BANKING, FINANCE & INSURANCE
Russian law enforcement authorities have detained businessman Alexander Grigoryev, the co-owner of several bankrupt financial institutions, including banks Zapadny, Doninvest and Russian Land Bank. Investigators believe Grigoryev, as part of a group of about 500 people, bankrupted the banks by stripping the most liquid assets, and might have arranged for some $46 billion to be funneled out of the country through Moldovan and Baltic schemes (Kommersant, p. 1).
RETAIL & CONSUMER MARKET
Russia's Anti-Monopoly Service, Health Ministry and Consumer Rights Service have come out against a bill to ban advertising of fast food and other foods with high salt, sugar and fat content. The media market would lose an estimated 20 billion rubles if the bill, which the State Duma will consider in December, is passed. It could also create risks for the organization of the 2018 World Cup in Russia, the partners for which include Coca-Cola and McDonald's (Kommersant, p. 1).
Synergy Group, one of Russia's biggest vodka producers, has shut down its Nizhny Novgorod distillery ROOM due to the unfavorable market situation. Legal vodka production in Russia fell by a record 22.3% last year, and in the past eight years the number of operating distilleries in the country has decreased by more than half (Kommersant, p. 10).
REAL ESTATE & CONSTRUCTION
The five-star Mardan Palace hotel in Turkey that belonged to Telman Ismailov, once one of Russia's most influential businessmen, has been acquired by Halk Bankasi as part of court order enforcement proceedings. The hotel was valued at about $247 million, but the Turkish state bank will only pay about $124 million for it. The hotel, which by various estimates cost $1 billion-$1.4 billion to build, was probably Ismailov's biggest asset (Vedomosti, p. 10).
TELECOMMUNICATIONS, MEDIA & TECHNOLOGY
Microsoft plans to hike prices for its software and cloud services for retail and corporate users in Russia, except boxed versions of Windows and Xbox game consoles, by 19-25% as of January 1, a source said. The U.S. software giant already raised prices by up to 30% in February after the collapse of the ruble. Microsoft's Russian partners and customers believe the reasons are the same this time (Kommersant, p. 7).
The German authorities suspect Kartina.TV, a provider of paid access to Russian television channels, of piracy. Police have searched Kartina Digital's head office in Wiesbaden and the management company's accounts in Germany have been frozen, although services have not been suspended. The investigation was launched on a complaint about copyright violations from the German football league (Vedomosti, p. 11).
TRANSPORTATION & LOGISTICS
S7 Airlines co-owner Vladislav Filev is pulling out of a deal to buy a controlling stake in Transaero, until recently Russia's second largest airline. The official reason is that Transaero owner Alexander Pleshakov has been unable to put together 51% of shares in the airline, which has a debt of about 260 billion rubles. Filev's idea to save the airline seemed risky from the start, as the authorities were opposed and Transaero has already lost its operating certificate and profitable international routes (Vedomosti, p. 1; Kommersant, p. 7).
Kogalymavia executives said on Monday that they are confident the crash of the airline's Airbus A321 in Egypt on Saturday, which killed all 224 people aboard, was not caused by technical problems or pilot error. They believe it was caused by some "mechanical impact" on the aircraft. Technical experts and Russia's Investigative Committee are still trying to establish the reasons for the crash (Kommersant, p. 1; Vedomosti, p. 12).
AUTOMOTIVE & ENGINEERING
Avtovaz, Russia's largest carmaker, has suspended all promotions as of November, including discounts under the government vehicle scrapping and trade-in program. The company is waiting for confirmation of additional government stimulus measures for the ailing auto industry. Avtovaz's main rivals have extended discounts, and its partner Renault has even increased them (Vedomosti, p. 10).
AGRICULTURE, FISHING & FORESTRY
Interview: Viktor Linnik, President of Miratorg Agribusiness Holding (Vedomosti, p. 8).
