Moscow press review for November 27, 2013
MOSCOW. Nov 27 (Interfax) - The following is a digest of Moscow newspapers published on November 27. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
The nine biggest loans that Vnesheconombank extended for projects for the Sochi 2014 Olympics, totalling 190 billion rubles, will have to be restructured. The Russian state lender could lose 175 billion rubles (Vedomosti, p. 1).
The presidium of Russia's Council of Judges has issued a number of resolutions aimed at fighting corruption in the judicial system. It has approved rules for posting information online on "nonprocedural" appeals to judges and court authorities, as well as proposed passing a new federal law on judicial service (Kommersant, p. 1).
The Russian government has submitted a bill to the State Duma that would allow the executives of state companies to be criminally prosecuted for negligence. The authors of the bill say it will increase accountability, while detractors warn it will not help without effective oversight of these companies (Vedomosti, p. 2; Kommersant, p. 8).
Russian-Israeli businessman Arkady Gaydamak has been arrested in Switzerland. Gaydamak is suspected of shady dealings in several countries. France was the first to request his extradition (Kommersant, p. 1).
OIL & GAS
Total wants to swap its 25% stake in the Shtokman offshore gas project for a stake in Gazprom's Baltic LNG project. However, the French company wants to liquefy its own gas at the plant, which the Russian gas giant opposes (Vedomosti, p. 1).
One of Gazprom's biggest and oldest contractors, Ziyad Manasir's SGC has complained to the Kremlin energy commission that the gas giant is poorly managing projects and failing to meet contract terms. Sources attribute the dispute to the fact that SGC has doubts about its future with Gazprom and now wants to secure contracts from its rival Rosneft, whose president is secretary of the commission (Kommersant, p. 9).
METALS & MINING
Russian coal and steel group Mechel, struggling with a $9.55 billion debt, is now holding up salary payments to employees, some of whom have not yet been paid for October. A federal labor regulator said company management could face criminal prosecution if wages are not paid for two months (Vedomosti, p. 10).
BANKING, FINANCE & INSURANCE
Russia's Central Bank has rejected the idea of recapitalizing Vnesheconombank (VEB) by handing its subsidiaries Globex and Sviaz Bank to the Deposit Insurance Agency. The state lender is prepared to develop these banks itself if the CBR extends 161.8 billion rubles in deposits at VEB for 15 years and lowers interest rates on them. The plan would see VEB divest Globex in 2021-2023 and Sviaz Bank in 2025-2027 (Kommersant, p. 1).
The Russian banking market's reaction to the Central Bank's crackdown on dishonest and unstable banks is escalating, with some drawing parallels to the crisis of confidence in 2004. Blacklists are circulating again and the interbank market is tightening, but this time banks are better prepared (Kommersant, p. 10; Vedomosti, p. 11).
Interview: Paul Taylor, CEO of Fitch Ratings (Vedomosti, p. 8).
RETAIL & CONSUMER MARKET
Russians do not skimp when holidaying abroad. They spent nearly $43 billion abroad last year, 37% more than in 2011, Hotels.com estimates. Tourists from Russia splurged on shopping and restaurants, but unlike Chinese travellers, saved on museums (Kommersant, p. 9).
Russian online stores are attracting fewer new customers, a survey from Yandex.Market and GfK shows. They are now almost even by this indicator with foreign competitors, who have managed to maintain their momentum thanks to lower prices (Vedomosti, p. 11).
TELECOMMUNICATIONS, MEDIA & TECHNOLOGY
Gazprom Media has reached an agreement to buy Interros Group's Profmedia broadcasting corporation, including leading radio station Avtoradio, and TV channels TV-3, Pyatnitsa and 2x2, as well as a 74.55% stake in film company Central Partnership. Russia's biggest media group will reportedly pay $700 million-$800 million (Kommersant, p. 1; Vedomosti, p. 10).
TRANSPORTATION
Russia's first federal toll highway built under a concession agreement, which opened Monday, will charge 8 rubles/km. The project demonstrates that the prices of private investors will be higher than tolls on road projects with guaranteed support from the federal budget and a government tariff (Vedomosti, p. 4).
Russian airlines could get a break on payment of customs duties on foreign aircraft for another three years, according to a proposal formulated at Monday's meeting on support for the domestic aircraft industry. However, the government has not given up on the idea of aggressively promoting domestic aircraft (Kommersant, p. 11).