Moscow press review for March 22, 2012
MOSCOW. March 22 (Interfax) - The following is a digest of Moscow newspapers published on March 22. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
The Russian government is preparing unprecedented measures to develop Siberia and the Far East. A special state company might be set up to build infrastructure, and it could receive all income from the management of the National Welfare Fund over a period of ten years (Vedomosti, p. 1).
Russia's relations with Kyrgyzstan have taken a sharp turn for the worse. Moscow is unhappy with Kyrgyzstan's plans to close a Russian military base, while Bishkek is demanding the replacement of the secretary general of the Collective Security Treaty Organization. The countries are also fighting over the Dastan torpedo plant, in which Russia wants a 75% stake in exchange for writing off $180 million in debts. (Vedomosti, p. 1; Kommersant, p. 8).
With official consultations beginning on the candidates for governor of Moscow Region, Emergency Situations Minister Sergei Shoigu and Regional Development Minister Viktor Basargin have been mentioned as the two frontrunners (Vedomosti, p. 2).
UTILITIES
President-elect Vladimir Putin might have to make a choice Friday about which sector is more important - gas or electricity. Gazprom is asking for an additional price increase, while power companies are getting ready to lobby against this. Putin will attend the launch of the BPS-2 pipeline on Friday, and then hold a meeting on gas supplies at the Kirishi power plant (Vedomosti, p. 8).
METALS & MINING
Arkady Rotenberg, a friend of Prime Minister Vladimir Putin, plans to build a nitrogen fertilizer plant in the Far East that could cost up to $1.5 billion and become the largest in Russia. The project, to be implemented by Rotenberg's National Chemical Group, has a strong chance of succeeding as it will have good access to export markets and is not expected to have problems with raw material supplies (Kommersant, p. 9; Vedomosti, p. 8).
BANKING, FINANCE & INSURANCE
Sberbank is preparing to enter the promising, 150 billion ruble mobile payments market. The first move in this direction was to cut off services to the biggest player on this market, Qiwi Wallet. Qiwi clients can no longer top up their e-wallets through Sberbank, because its "priorities in accepting retail payments through remote channels have changed," in other words Russia's biggest bank has stopped facilitating the expansion of a potential rival (Kommersant, p. 1).
Sberbank will begin issuing mortgage loans in the Krasnodar Territory in October 2012 at interest rates as low as 6%, a target rate mentioned by Prime Minister Vladimir Putin. The rate will be brought down from Sberbank's usual 9.5-14.75% with the help of regional government subsidies and deposits at 2% interest (Vedomosti, p. 7).
RETAIL & CONSUMER MARKET
Advertising does not have a direct impact on a company's sales, according to a new rating of the leader advertisers. Both manufacturers of fast moving consumer goods who increased advertising spending and those who reduced spending felt the decline in consumer activity in 2011 (Kommersant, p. 1).
The rates paid to Russian celebrities for Russian advertising contracts are growing. Television presenter Tina Kandelaki has set a new record, signing a $2 million two-year contract with cosmetics company Oriflame (Vedomosti, p. 7).
Interview: Anton Wolfgang von Faber-Castell, CEO of Faber-Castell AG (Vedomosti, p. 5).
REAL ESTATE & CONSTRUCTION
Restrictions on construction in Moscow have driven up prices for new apartments, while the surrounding Moscow Region is experiencing a construction boom and prices are several times lower than in the capital. This is firmly in line with the Moscow government's tacit policy of moving people out of the city (Vedomosti, p. 1).
TELECOMMUNICATIONS, MEDIA & TECHNOLOGY
National telecom provider Rostelecom, having consolidated 100% ownership of one of Russia's largest cable TV and Internet providers, National Telecommunications (NTC), no longer needs the company's top management. NTC founder Sergei Kalugin is leaving the company (Kommersant, p. 1).
Yury Milner, one of Russia's most successful Internet investors, and billionaire Alisher Usmanov are forming a new fund, DST Global III, for which they intend to raise $1 billion. The fund will invest in late-stage Internet projects worth upwards of $500 million. In order to attract investors, Milner is offering a discount on DST's most desired asset - shares in Facebook (Vedomosti, p. 11; Kommersant, p. 9).