Moscow press review for December 29, 2011
MOSCOW. Dec 29 (Interfax) - The following is a digest of Moscow newspapers published on December 29. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
Russia's economy will slow in 2012, inflation will again accelerate in the middle of the year, and the ruble will have ups and downs, but generally continue to weaken amid high oil prices, analysts expect (Vedomosti).
Government experts, in a report on amendments to the country's development strategy to 2020, advise the state to be less aggressive toward the business community. Reform of criminal law and amnesties for convicted businessmen should be priorities for normalizing the business climate in Russia. One of the more radical proposals is to prohibit the launch of economic criminal cases unless a complaint was filed and damages were suffered (Vedomosti).
With the launch of Prime Minister Vladimir Putin's presidential campaign, Russia has begun criticizing the United States and its allies. The "reboot" of relations between Russia and the U.S. is over, Russian diplomats say (Vedomosti).
OIL & GAS
Russia's three leading banks are financing the creation of a major independent gas producer. Sberbank, VTB and Gazprombank will lend 120 billion rubles to Severenergia, a joint venture between Gazprom Neft, Novatek, Eni and Enel that consolidates the gas assets of former oil major Yukos. The deal, one of the biggest of the year, is expected to be closed within days (Vedomosti).
BANKING, FINANCE & INSURANCE
The Russian stock market will grow by nearly 25% in 2012, in large part thanks to strong oil prices, which are expected to average $115 per barrel, according to a consensus forecast of analysts. Expectations for this year were only slightly less optimistic, but the market actually fell nearly 20% (Vedomosti).
RETAIL & CONSUMER MARKET
Moscow United Electricity Distribution Company , or MOESK will officially open the first charging stations for electric vehicles at the beginning of 2012. But they might go virtually unused, as fewer than 50 electric cars have officially been sold in Russia so far (Vedomosti).
Retailers who were forced to vacate some of their locations due to the financial crisis and high rents are beginning to return. Euroset, Russia's leading mobile phone retailer, is opening a flagship store on Tverskaya, one of Moscow's main shopping streets, at the same location it left in 2009 (Vedomosti).
TELECOMMUNICATIONS, MEDIA & TECHNOLOGY
One of Russia's oldest and largest publishers, Prosveshcheniye, or Enlightenment has been privatized. Olma Media Group has won the tender for 100% of shares in the company with a bid of 2.25 billion rubles. Prosveshcheniye, which publishes 35-40% of all school textbooks in Russia, had revenue of 3.1 billion rubles in 2010 and expects this figure to grow 27% in 2011 (Vedomosti).
AGRICULTURE & FORESTRY
AFK Sistema, a Russian consumer industries conglomerate, is continuing to invest in agriculture. Its latest acquisition is a famous stud farm in Rostov Region, which it bought at auction for 303 million rubles, outbidding four other bidders. However, Sistema is more interested in grain than horses (Vedomosti).