Moscow press review for December 19, 2012
MOSCOW. Dec 19 (Interfax) - The following is a digest of Moscow newspapers published on December 19. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
The reform of Russian customs according to a 'road map' aimed at improving the business climate in the country has been underway for six months already, but most businessmen are not seeing any changes. Customs officials are blaming Russia's food safety and consumer rights watchdogs (Vedomosti, p. 1).
Russian government ministers, including Foreign Minister Sergei Lavrov and Deputy Prime Minister for social issues Olga Golodets, have come out against a proposal from legislators to ban Americans from adopting Russian children as a response to the U.S. Magnitsky act. President Vladimir Putin has not yet stated his position (Kommersant, p. 1; Vedomosti, p. 1).
Interview: Viktor Khristenko, Chairman of the Eurasian Economic Commission (Vedomosti, p. 5).
OIL & GAS
Gazprom has slashed its capital expenditures forecast for 2013 in half to 790 billion rubles, and that for 2013-2015 by almost a third to 2.8 trillion rubles. However, even this is too high and comparable to the Russian gas giant's market capitalization, analysts said (Vedomosti, p. 1).
Ukraine, which has been demanding a substantial price reduction on Russian gas for years, might finally get it. Gazprom might reduce the price of gas for Ukraine to $352/1,000 bcm in 2013 from the expected $420, attributing this to changes in the market situation, not a discount for Ukraine. However, officials in Kyiv say the price formula has changed, though there have been no reports of significant Ukrainian concessions to Russia (Kommersant, p. 1).
Russia's wealthiest oil company, Surgutneftegas has acquired its first major asset in years, paying a record 46.2 billion rubles for the license to the Shpilman field, three times more than the starting price. Surgutneftegas outbid Gazprombank and state oil major Rosneft (Kommersant, p. 9; Vedomosti, p. 7).
Gazprom will only sell 477.4 billion cubic meters of natural gas this year instead of the planned 508 bcm. The company now expects to sell more than 500 bcm of gas only in 2015 (Vedomosti, p. 7).
METALS & MINING
Russian steel and coal group Mechel, which is struggling under a heavy debt burden, has managed to sell its only energy asset in Bulgaria, coal-fired power plant Toplifikacija Rousse, but only for GBP42 million, about 60% less than it paid for the plant a few years ago (Kommersant, p. 11).
BANKING, FINANCE & INSURANCE
Russia's banking sector is in the midst of a liquidity crunch. Banks borrowed a record 1.9 trillion rubles from the Central Bank on Monday. Banks and the regulator are waiting for December 25, when they expect a flood of cash as the government begins financing delayed budget expenditures (Vedomosti, p. 7).
Russia's ambitious plan to turn Moscow into a financial center comparable to Shanghai in 2012 has failed, Ernst & Young and the Russian School of Economics said in a report. The plan was derailed by the crisis and bureaucracy (Vedomosti, p. 3).
REAL ESTATE & CONSTRUCTION
The former owner of the failed SBS Agro bank, Alexander Smolensky is selling off his Moscow real estate. He wants GBP323 million for five properties, including GBP173 million for the Alexander House business center (Kommersant, p. 1).
TELECOMMUNICATIONS, MEDIA & TECHNOLOGY
Interview: Yekaterina Tikhomirova, President of European Media Group (Kommersant, p. 13).
TRANSPORTATION
Indonesia's transport safety authority, the NTSC released a report Monday finding that the chief pilot and an air traffic controller were responsible for the crash of a Sukhoi Superjet-100 during a demonstration flight in May 2012 that killed 45 people. The pilot was distracted by the plane's buyer (Kommersant, p. 1).
AGRICULTURE & FORESTRY
Russian pork producers could face losses next year. Feed prices have risen due to drought, while pig prices have fallen due to Russia's accession to the WTO. The Agriculture Ministry is promising to help pig farmers (Vedomosti, p. 7).