Moscow press review for January 28, 2013
MOSCOW. Jan 28 (Interfax) - The following is a digest of Moscow newspapers published on January 28. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
The Russian government will sell assets only in Russia, President Vladimir Putin has decided .There are plans to offer at least 10% of shares in bank VTB and 14% of diamond miner Alrosa on the Moscow Exchange this year (Vedomosti, p. 1; Kommersant, p. 8).
Following the publication of weak Russian industrial statistics in December 2012, Federal Statistics Service data on domestic investment and consumer demand confirmed concerns about a dramatic slowdown in economic activity and an increase in employment to a 'balanced' level. Employment declined in core sectors, while increasing in the 'gray' economy and the service sector, according to the Macroeconomic Analysis Center (Kommersant, p. 2).
President Vladimir Putin has kicked off the creation of a mega-regulator in Russia. The Federal Financial Markets Service will be absorbed by the Central Bank by 2015. The market expects that some powers will go to self-regulating organizations (Vedomosti, p. 4).
OIL & GAS
Russia and Ukraine are in the middle of a new gas dispute. Gazprom is demanding Ukraine pay $7 billion for failing to buy about 16 billion cubic meters of gas in 2012 under a take-or-pay contract. The fine could become additional leverage for Russia in negotiations on the management of Ukraine's gas transport system and other disputed issues (Kommersant, p. 1; Vedomosti, p. 1).
The president of the World Chess Federation and former Kalmykia president Kirsan Ilyumzhinov has run into problems with the purchase of Bulgaria's Petrol Holding. Even before closing a deal to buy 52.5% of the company, he might be pulled into a legal battle between its shareholders. He plans to file a lawsuit against the owner of the other 47.5% of Petro Holding, who has accused Ilyumzhinov of falsifying documents for the deal (Kommersant, p. 9).
METALS & MINING
Norilsk Nickel co-owner and new CEO Vladimir Potanin is asking President Vladimir Putin to eliminate export duties for the Russian mining giant that generate about $500 million in annual revenues for the government. The company, which is in good financial shape and has a high profit margin, is citing the market slump, while analysts say the main problem is the big dividends that Norilsk Nickel's shareholders have agreed on (Kommersant, p. 1).
The Russian government will help UC Rusal, the world's biggest aluminum producer, to close two smelters - Nadvoitsy and Volkhov. They cannot be saved even with a dramatic reduction of electricity prices (Vedomosti, p. 11).
BANKING, FINANCE & INSURANCE
Otkritie Financial Corporation's consolidation of 100% of shares in Nomos Bank has run into delays. Minority shareholders, unconvinced by the price offered, have tendered half as many shares as expected. This puts into question the deal itself and the planned delisting of the bank (Kommersant, p. 7).
RETAIL & CONSUMER MARKET
Competition on Russia's drug market could be significantly restricted. The Health Ministry has drafted amendments to the law regulating drug sales that propose to grant the right to accelerated assessment to only one generic (Vedomosti, p. 10).
TELECOMMUNICATIONS, MEDIA & TECHNOLOGY
Russia's Culture Ministry is proposing to crack down on Internet piracy. Hosting providers and website owners will have to remove illegal content within a day after copyright holders file a complaint, as well as provide information on the users who posted such content, or face a fine of up to 500,000 rubles, suspension of operations for up to 90 days and seizure of servers (Kommersant, p. 1).
Russian state technology corporation Rusnano plans to slash a third of its staff by May 1 as it continues its reorganization with its investment division ahead of the planned placement of 10% of shares this year. CEO Anatoly Chubais wants to bring management costs down to the level of leading western investment funds (Vedomosti, p. 10).
Interview: Sergei Kostevich, President and Founder of Asbis Enterprises (Vedomosti, p. 8).