Foreign investors are being lured back into Russia by businesses seeking to tap the public equity and bond markets, the Financial Times reports today, after almost three years when they have shied away over concerns of the impact of sanctions as well as worries over the economy.
State-owned Indian Railways is to host a meeting of the heads of its fellow South Asian railway companies next week to discuss the possibility of pushing forward the development a transcontinental rail freight service that would run through Iran and Turkey. If the 6,000 km project were to be realised, (more…)businesstoday Read More»
A consortium set up between the Russian Direct Investment Fund (RDIF) and a group of GCC investors has bought a 12% stake in Russian Helicopters, it announced yesterday. The deal entails an up-front investment of $300m with a further $600m to follow at a later date.
The cash injection (more…)
New Delhi and Moscow are finally getting close to signing off on the $1bn joint venture for the construction of Kamov-226 helicopters after the idea was revived two years after it was first suggested by President Vladimir Putin. 140 of the 200 helicopters in the initial order will be built in India as part of Prime Minister Narendra Modi’s drive (more…)reuters Read More»
The new axis that has been developing between Istanbul and Moscow in recent months appeared to strengthen even further yesterday when President Vladimir Putin signed a bill ratifying the construction of the Turkish Stream pipeline that will eventually carry natural gas from Russia under the Black Sea to Thrace on Turkey’s border with Greece.
Turkish Stream (more…)
Russian recession: Russia is edging closer to the end of its longest recession in almost two decades as mining, manufacturing and agriculture along with stabilising oil prices, to help to steady the economy.
GDP contracted by 0.2% last year after an upwardly revised decline of 2.8% in 2015, according to data released by the Federal Statistics Service yesterday. with rising exports and rebuilding of stocks among the key drivers. Manufacturing grew by 1.4% while production of oil, gas and other natural resources was up by 0.2%. Buoyed by restrictions on imports and the ruble devaluation, agriculture grew by 3.5 %. although consumers continued to struggle, with wholesale and retail trade down 3.6 %. Construction was also off the pace and contracted by 4.3%.
“We can expect growth of 1-1.5 % [this year] and maybe even 2% if things go well”, First Deputy Prime Minister Igor Shuvalov predicted last month.
President Vladimir Putin was less sanguine, however, and has warned ministers that the country was not yet out of the woods and pressed them to find new sources of stimulus.
Following its acquisition of a 19.5% stake in Rosneft via its shareholding in the Anglo–Swiss multinational commodity trading and mining company Glencore last month, the Qatar Investment Authority (QIA) is thought to be on the verge investing a further $2bn in the Russian energy sector. After Russian President VladimirPutin and Rosneft CEO Igor Sechin met with QIA chief Abdullah Bin Mohammed Bin Saud Al Thani in Moscow yesterday, speculation was rife that the Qatari sovereign wealth fund could be about to buy Fund Energy’s 49% share in the Yargeo joint venture that it set up with Novatek to develop the Yarudeyskoe oil field on the Yamal peninsula in Northern Siberia.
The QIA had made “another deal that will mean additional investment of $2bn”, Al-Thani said before the meeting, although neither side would give further details. However, industry insiders are claiming that Fund Energy, the investment fund set up and run by former Russian energy Minister and Gazprom board director Igor Yusufov, was looking to sell its stake in Yargeo, the JV in charge of the largest oil asset in Novatek’s portfolio.
Launched in December 2015, the field has an annual production capacity of 3.5m tonnes or 9,700 tons of crude oil a day, while the JV also runs a central oil treatment facility, oil and gas gathering systems, a pumping station and gas and crude oil pipelines. After treatment, the oil is transported 350km south to Purpe where it is injected into Transneft’s trunk pipeline system.
In December, Russia’s President Vladimir Putin took to the TV airways to celebrate the news that the commodity trader Glencore and Qatar’s QIA sovereign wealth fund had agreed to buy Moscow’s 19.5% stake in the state-run Rosneft oil giant for a figure Putin put at $11bn, boosted by what he described as “the rising trend in oil prices.”
Having overtaken Saudi Arabia as China’s top oil supplier over the course of 2016, Russia has got off to a cracking start to 2017and has more inflows of foreign portfolio money than any other global emerging market fund so far this year.
According to data released yesterday (more…)
Russian oligarchs: Rising share prices and a resurgence in the value of the rouble brought on partly by the prospect of a Trump administration have added approximately $29bn to the fortunes of some of Russia’s richest men, making President Putin’s inner circle among the chief beneficiaries of last November’s presidential election, according to figures compiled and released by Forbes this week.
Among the biggest winners (more…)
Three years into her purge of the country’s banking sector which to date has seen 276 financial institutions driven out of business and a further 28 put through the regulator’s financial rehabilitation programme, the Central Bank of Russia’s Elvira Nabiullina has been named Europe’s best central banker for 2016 by the UK magazine The Banker. (more…)
Outgoing US President Barack Obama this week did his best to thwart his successor Donald Trump’s plans to improve relations with Moscow and to increase US oil and gas production by extending the sanctions imposed on Russia over its 2014 annexation of Crimea while almost simultaneously withdrawing (more…)
Financial regulators in Rome are examining whether Intesa Sanpaolo’s financing of Glencore‘s recent investment in Russian oil group Rosneft complies with sanctions imposed on Western companies conducting business with Russian concerns after the annexation of Crimea in 2014, it emerged yesterday.
Two weeks ago, (more…)
Russian sanctions: As widely anticipated, European Union leaders last week voted to extend economic sanctions against Russia over the ongoing conflict in Ukraine for a further six months. There were, however, signs of a rift beginning to emerge between some East European countries – led by Poland (more…)Read More»
Tillerson: German Chancellor Angela Merkel and French President Francois Hollande yesterday put their collective weight behind a six-month extension of the package of economic sanctions imposed on Russia after its annexation of Crimea nearly three years ago; but the long-term future of the strategy is looking increasingly uncertain in the light of Donald Trump’s choice of Exxon Mobil Chairman and CEO Rex Tillerson as his Secretary of State. Tillerson has long been known to have a good personal relationship with Russian President Vladimir Putin and to be sceptical about the efficacy of the sanction strategy and this week claims have also emerged in several US media outlets that he had visited the White House more than 20 times in an effort to ensure that his company was not put at a competitive disadvantage by the manner in which the sanctions were imposed. The oil chief was said to be concerned that European nations might not apply the restrictions as strictly as the US. (more…)Read More»
Just weeks after snapping up the Russian government’s stake in Bashneft for around $5bn and days after the Qatar Investment Authority and Glencore announced that they were to buy a 19.5% stake in the energy giant from the Russian government for $11bn, Rosneft was in the news again today as it announced that it had agreed to pay Italian oil and gas group Eni $1.125bn for a 30% stake in the offshore Shorouk concession.