Russia 090423 Basic Political Developments

National Economic Trends

• 
  Russian international reserves up $0.9 bln in week
  
• 
  Kudrin Says Reserve Fund to Be Spent by '10 - Finance Minister Alexei Kudrin said Wednesday that the Reserve Fund would be "practically exhausted" in 2010, and the government will have to cut spending to trim a budget deficit that is estimated at 7.4 percent this year.
  
• 
  Central Bank expects Russia’s bank lending to go up 10-12% this year – Kudrin
  
• 
  Cash in circulation down 16.3% to $107.5 bln in Russia in 1Q09
  
• 
  Russia’s inflation reaches 6% by April 20 – statistics
  
• 
  Russia's Putin unveils plan to aid small businesses
  
• 
  Putin Offers Measures To Recapitalize Banks - President Vladimir Putin on Wednesday outlined aggressive new measures for recapitalizing the banking sector and spurring lending to cash-strapped enterprises.
  Putin gives banks, borrowers a boost
  
• 
  Putin to End Rule On Cash Registers - The government will ease life for small businesses by simplifying their taxes and ditching a requirement that they must all use cash registers, Prime Minister Vladimir Putin said Wednesday.
  
• 
  Pension funds investment restrictions eased - Russia's Federal Service for Financial Markets says it will ease the rules on what pension funds can invest into and so broaden the number and kinds of assets available to fund managers.
  
• 
  UralSib: 1Q09 macro statistics reveal a mixed picture
  

Business, Energy or Environmental regulations or discussions

• 
  'Climate Doctrine' Outlined - The Natural Resources and Environment Ministry wants to see steeper penalties for environmental violations as part of a "climate doctrine" that it composed, a policy paper predicting that parts of Russia may go underwater after 2025, Minister Yury Trutnev said Wednesday.
  
• 
  Russian Stocks Decline, Paced by Severstal, Rosneft; VTB Gains
  
• 
  Rencap: Russian eurobond segment weaker
  
• 
  Russian bank VTB's year profit beats forecasts
  
• 
  VTB Posts $104 Million Fourth-Quarter Loss, Less Than Expected VTB forecasts revenue to rise 10%-20% in 2009
  
• 
  Alfa to Get VEB Loan
  
• 
  Sberbank Q1 Profit Sinks
  
• 
  Sberbank to hold talks with Kazakh officials on BTA acquisition in May
  
• 
  Peter Hambro Mining PLC completion of Aricom acquisition and move to main market
  
• 
  KAMAZ to stop its main production line until May
  
• 
  Russia's Magnit downgraded to hold by Citigroup
  
• 
  Foreigners will not be able to buy Russian land in border areas
  
• 
  Railway transport plummets - The railway transports of timber and wood products along the Russian Northern Railway line is down 24 percent this year compared with the same period in 2008.
  
• 
  Saturn Bid Delayed - The Federal Anti-Monopoly Service said Wednesday that it would wait until June to consider state-owned Oboronprom's application to acquire 75 percent of engine maker Saturn.
  
• 
  Russian Arctic helicopter company for sale - The Russian state is selling shares in the Naryan-Mar United Air Fleet, the biggest helicopter company in the Nenets Autonomous Okrug.
  
• 
  Ingosstrakh Notes Skyrocketing Fraud - Insurance fraud hit a high in the first quarter as a growing number of individuals felt compelled to take criminal measures to avoid paying off loans, Alexander Grigoryev, chairman of insurer Ingosstrakh, told journalists on Wednesday.
  
• 
  Evroset Appoints VimpelCom’s Alexander Malis as President
  
• 
  MTS vs. Vimpelcom: Vimpelcom winning the retail war
  
• 
  Billionaires Disappear From Russian Art Auction at Sotheby’s
  

Activity in the Oil and Gas sector (including regulatory)

• 
  Russia sees no need for oil cuts as shortage looming
  

Effect of oil output cuts to be short-lived

Oil shortage looms in medium term

Sees progress on South Stream gas pipeline project

Surgut's purchase of MOL stake not hostile bid

• 
  Russian gas demand rebounding - Overall gas consumption in March, according to Vedomosti, amounted to some 35.5 bcm, 0.8% less than in the same period last year. Industrial and utilities consumption in March continued to decline, by 2.6% and 5.2%, respectively.
  
• 
  Novatek's management board gets shares
  
• 
  Sibneftegaz Starts Gas Production at Northern Pyreynoye Field
  
• 
  TNK-BP Bids for Minority Sibir Stake
  
• 
  TNK BP may make an offer for Zhaikmunai
  
• 
  Belokamenka crude terminal to handle 9mil tonnes
  
• 
  Russia tries to control gas supplies to Europe through new deals: experts - "Russia is making every effort to get volume of gas, including, offering deals at market prices. This is a big geopolitical game," the Russian Alfa-Bank Oil and Gas Senior Analyst Shirvani Abdullayev told Trend Capital over phone.
  
• 
  WSJ: EU-Ukraine Gas Deal Is No Pipe Dream - A real plan to improve the network should please Europe and Russia.
  
• 
  Russia must offer maximum high price for Azerbaijani gas: Interview with head of Russian Gas Association - Russian Gas Association President Valery Yazev spoke with Trend Capital in an exclusive interview.
  

Gazprom

• 
  Gazprom, E.ON could close Siberian asset deal in summer
  
• 
  Gazprom Neft on Bourse
  
• 
  Gazprom primes South Korea study - Russian gas giant Gazprom is poised to carry out an investment study covering shipments of natural gas to South Korea and is looking at possible transportation routes.
  
• 
  Gazprom Neft Buys Italy Assets
  
• 
  Gazprom lets Ukraine off gas fine - After a lot of sabre rattling, Gazprom has backed down on its threat to fine Ukraine for buying less gas in the first quarter than it is contractually obliged to.
  
• 
  Gazprom: GDF Suez may get 9% stake in Nord Stream pipeline
  
• 
  Kommersant: Liberalized European markets to prevent Gazprom from pressuring consumers