Moscow press review for August 14, 2013
MOSCOW. Aug 14 (Interfax) - The following is a digest of Moscow newspapers published on August 14. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
The Russian economy will only grow by about 2% this year and growth is unlikely to accelerate much in the medium-term, the Central Bank said in its monthly monetary policy report, becoming the first to officially acknowledge that GDP growth is likely to fall short of the government's forecast of 2.4% (Kommersant, p. 1; Vedomosti, p. 4).
Russian state lender Vnesheconombank (VEB) wants to join the government in supporting small and medium businesses and give them access to the capital market. VEB plans to form a fund with Adams Street Partners to invest in businesses, both directly and through five to seven management companies (Vedomosti, p. 1).
Russia had a federal budget surplus of 0.6% of GDP in January-July. However, revenues and spending in 2013 are actually falling for the first time since the crisis - adjusted for inflation they were both lower year-on-year in the seven months (Kommersant, p. 2).
Interview: Nikolai Levichev, A Just Russia's candidate in Moscow's mayoral election (Vedomosti, p. 8).
OIL & GAS
Rosneft and the State Oil Company of Azerbaijan Republic (SOCAR) signed a cooperation agreement Monday and plan to produce oil and gas under a joint venture in various countries. Sources say the Russian state oil major might get stakes in the Shah Deniz-2 and Apsheron fields in Azerbaijan's sector of the Caspian (Kommersant, p. 7).
Mexico might lift a 75-year ban on foreign investment in the oil industry. Russian oil companies, trying to boost or at least stabilize production, could take advantage of this (Vedomosti, p. 10).
The Federal Anti-Monopoly Service has ruled that Alliance Oil has abused its dominant market position in Russia's Far East. If the regulator also finds the company guilty of inflating prices, Alliance Oil could face a big turnover fine (Kommersant, p. 9).
UTILITIES
Gazprom Energoholding, as expected, won the auction for the Moscow city government's 89.98% stake in Moscow Integrated Power Company, paying the starting price of 98.62 billion rubles. The group is promising to lower heating rates in Moscow (Kommersant, p. 9; Vedomosti, p. 12).
BANKING, FINANCE & INSURANCE
Kazan-based microfinancing company Kreditor is trying to conquer the Moscow market, offering interest rates of 10% per month on retail deposits and extending loans at 45% per month. The Federal Financial Markets Service intends to investigate, possibly together with the Prosecutor General's office (Vedomosti, p. 11).
The consumer lending bill being debated in Russia's State Duma could also affect mortgage loans, and the rules in this segment could be made stricter than in other areas. Legislators are considering restricting the ability of borrowers to pay off such loans early (Kommersant, p. 7).
RETAIL & CONSUMER MARKET
Pharmstandard board director Alexander Shuster could become the second largest shareholder of Russia's biggest drug maker. His company will get 18.74% of Pharmstandard shares, valued at $542 million, as payment for Shuster's Singapore firm Bever Pharmaceutical (Kommersant, p. 7; Vedomosti, p. ).
Greece has sold a third of gaming company Opap to a group of investors that includes companies controlled by Russian billionaire Alexander Nesis and Czech businessman Jiri Smejc for 650 million euros (Vedomosti, p. 10).
REAL ESTATE & CONSTRUCTION
A Russian court on Monday issued an arrest warrant for Sergei Polonsky, the founder of developer Mirax Group, on charges of steeling over 3.2 billion rubles from investors in a luxury residential development. The Interior now plans to ask Israel, where Polonsky has been hiding, to arrest and extradite him (Kommersant, p. 4).
AUTOMOTIVE & ENGINEERING
The Russian government has approved the appointment of Krylov Research Center head Andrei Dutov as chairman of United Shipbuilding Corporation (USC). This will escalate the battle for influence within USC's management, as Dutov and Deputy Prime Minister Dmitry Rogozin, who oversees the industry, have very different views on USC's development (Kommersant, p. 1).
State corporation Rostec has resumed talks with Canada's Bombardier on assembling the Q400 regional aircraft in Russia. An agreement on this could be signed at the MAKS 2013 international air show that opens near Moscow later this month (Vedomosti, p. 11).