Moscow press review for May 16, 2013
MOSCOW. May 16 (Interfax) - The following is a digest of Moscow newspapers published on May 16. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
Russian Prime Minister Dmitry Medvedev on Wednesday unexpectedly called into question the grandfather clause that protects foreign investment projects in Russia from unforeseen changes in legislation. The attack on the law is a bad sign for investors, as its function is to offer political protection for investment (Kommersant, p. 1).
The Kremlin might impose additional oversight of the Skolkovo Foundation for the development of a new technologies center. Presidential aide and former education and science minister Andrei Fursenko might be appointed to oversee Skolkovo (Vedomosti, p. 4; Kommersant, p. 6).
Russia has not yet learned to live within the World Trade Organization, according to a new report. Instead of taking advantage of the opportunities of WTO membership, the government is imposing protective measures, which lead to trade disputes (Vedomosti, p. 4).
In a repeat of its April decision, Russia's Central Bank on Wednesday left key rates unchanged while lowering interest rates on long-term operations, noting that inflation remains higher than targeted (Vedomosti, p. 5).
OIL & GAS
Tensions between Rosneft and Transneft have again escalated. The state oil major is refusing to finance pipeline expansion for its additional oil exports to China and proposes that Transneft pick up the cost. The pipeline monopoly say's Rosneft's wish list will cost 320 billion rubles (Kommersant, p. 11).
METALS & MINING
Interview: Andrei Komarov, Principal Owner of ChTPZ Group (Vedomosti, p. 8).
BANKING, FINANCE & INSURANCE
Rosbank CEO Vladimir Golubkov was detained Wednesday on charges of bribery. According to police, the head of one of Russia's largest banks received a $1.5 million bribe from an automobile company to renew a loan on better terms (Kommersant, p. 1; Vedomosti, p. 1).
The government has decided to exclude Russian Agricultural Bank from its privatization program. The bank will remain wholly state owned, but it is unlikely any time soon to secure the coveted status of a state corporation, which would give it more freedom of action (Kommersant, p. 10).
Russian banks are lowering deposit interest rates. They have enough money and lending is not growing. The country's biggest lender, Sberbank joined the most aggressive players on Wednesday, and VTB24 and other major banks are set to follow (Vedomosti, p. 10).
TELECOMMUNICATIONS, MEDIA & TECHNOLOGY
Billionaire Vladimir Potanin's Profmedia will spend an unprecedented $100 million on the launch of the new Pyatnitsa channel, which will replace the Russian MTV. The media group borrowed 1.64 billion rubles for the new channel in February (Vedomosti, p. 11; Kommersant, p. 13).
Satellite communications company Iridium has officially launched operations in Russia after securing all the necessary licenses. The company's first order of business will be to legalize illegally used satellite phones (Vedomosti, p. 11).
TRANSPORTATION
Moscow airports might be strained to the limit of their capacity by 2020 already. Neither they nor the government are prepared for the rapid growth of air travel, which has been growing at two to five times the rate of Russian economic growth in recent years (Vedomosti, p. 1).
AUTOMOTIVE & ENGINEERING
Russia's Industry and Trade Ministry has nominated Vladimir Shmakov, a senior executive at tank maker Uralvagonzavod, to be the new head of United Shipbuilding Corporation. Two major players with an interest in USC, Rostec and Rosneft, are expected to approve the candidate (Kommersant, p. 1).
The year-on-year decline in new automobile sales in Russia accelerated to 8% in April. Most popular brands were affected, with some seeing sales plunge 20-30%. The situation on the market is expected to worsen in May and the summer (Kommersant, p. 1; Vedomosti, p. 10).
