Moscow press review for May 12, 2012
MOSCOW. May 12 (Interfax) - The following is a digest of Moscow newspapers published on May 12. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
United Russia wants to spread its socially conservative ideology beyond Russia and has begun working on securing control of the future Eurasian parliament. The party plans to hold an international forum of Eurasian conservatives in June to promote integration and ensure that conservatism dominates the Eurasian Union (Vedomosti, p. 1).
Russia would see inflation nearly double to 8-10%, the ruble weaken to 32.40 rubles/$1 and economic growth slow to 2% if oil prices were to fall to $80 per barrel, the Economic Development Ministry warns in its forecast for 2013-2015, which has been approved by the government (Vedomosti, p. 3).
United Russia deputies have submitted amendments to the State Duma that would allow the authorities to impose fines of up to 1.5 million rubles for breaking rules for holding rallies. This would violate constitutional rights to peaceful assembly and the principle of proportionate punishment, one expert said (Vedomosti, p. 2).
OIL & GAS
The shareholders of oil company TNK-BP International - BP and Russia's AAR consortium - have been left without dividends for an indefinite period of time. The company's board of directors lost its legitimacy on April 1 with the departure of two independent directors, including former German Chancellor Gerhard Schroeder. The shareholders have still not managed to find replacements (Vedomosti, p. 7).
UTILITIES
The Russian government's decision to put electricity distribution grid holding company IDGC Holding under the control of the Federal Grid Company (FGC) sent these companies' shares tumbling 8-10% on Friday. The news wiped nearly $1.5 billion off the market capitalization of companies across the sector - the parent companies and IDGC Holding's 12 subsidiaries (Vedomosti, p. 8).
BANKING, FINANCE & INSURANCE
The founder of one of Russia's oldest banks, Vozrozhdenie, Dmitry Orlov is stepping down as chief executive after 21 years. Orlov is expected to chair the bank's board of directors, gradually handing over the reins to his current deputy Alexander Dolgopolov (Vedomosti, p. 1).
Foreign investors are prepared to participate in the privatization of Russian state companies on the local exchange, but would prefer London or New York. Share placements on different exchanges would raise prices, but stunt the development of Russia's stock market. Nonetheless, the government is inclined toward this option (Vedomosti, p. 7).
TELECOMMUNICATIONS, MEDIA & TECHNOLOGY
Russia's four leading telecom providers, Rostelecom, MTS, Megafon and Vimpelcom, have teamed up for the first time to build a traffic artery. The companies have agreed to lay underwater fiber optic lines that will link Sakhalin Island, Kamchatka and Magadan Region at a cost of 2 billion rubles (Vedomosti, p. 11).
TRANSPORTATION
The Russian government not only plans to merge Moscow airports Sheremetyevo and Vnukovo, but also give them the airfield at cross-town rival Domodedovo. The mechanism for creating the new company will be developed by a consultant, who will be selected in a tender to be called by the end of May (Vedomosti, p. 1).
AUTOMOTIVE & ENGINEERING
State-owned United Shipbuilding Corporation (USC) has finally managed to win operational control over the largest shipbuilding asset of tycoon Sergei Pugachev, Severnaya Verf. The shipyard's general director, Andrei Fomichev stepped down on Friday and handed over the reins to Alexander Ushakov, who was appointed to the post by the new board back in mid-April. Analysts reckon USC will soon buy out the shares in the shipyard that are held as collateral by banks (Kommersant, p. 1).
AGRICULTURE & FORESTRY
Russian government officials, perhaps for the first time ever, are advising private companies to reduce rather than increase production. Due to a record sugar beet harvest 47.1 million tonnes last year, the Agriculture Ministry is advising farmers to reduce the area planted with this crop (Vedomosti, p. 7).