Aluminium, Oil and Gas

S. Kerimov’s structures might buy 17% of UC Rusal from M. Prokhorov

Onexim of M. Prokhorov actively sells a package of Rusal, it was offered to many candidates. The controlled by the son of S.

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Lukoil, Norilsk Nickel, Severstal are in rating of companies transparency

Five Russian companies have appeared in the rating of hundred companies with the most transparent reports among developing countries, made by the international organization Transparency International. The list of the hundred most transparent companies on the developing markets includes Evraz (the 34th place), Lukoil (the 58th place), Norilsk Nickel (the 67th place), Severstal (the 74th place) and UC Rusal (the 92th place).

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FAS defers the consideration of the case on violation of antimonopoly legislation by UC Rusal.

Commission of the Federal Antimonopoly Service (FAS) deferred consideration of the case against UC Rusal for a more detailed study of materials until December 24.
The case on the grounds of violation of the Federal Law "On Protection of Competition" was opened on October 9 on the basis of the statement of the "Magnitogorsk Iron and Steel Works" (MMK).

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UC Rusal thinks of Russian market growth

In 2015, the largest aluminum producer UC Rusal has staked on the development of the Russian market and the creation of aluminum-processing capacity in the country.
Thus, the company expects to launch - together with partners - mass production of cars, drill pipe, automotive components and other products with the use of aluminum.

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Metallurgy-2014: under “star” of Mechel

The outgoing year in metallurgy will be remembered by everyone, first of all, due to events with Mechel. In 2014, the most indebted company in the industry lost most of its capitalization. It was threatened with bankruptcy, default, was asked to sell assets, restructure its debt and convert it into shares. It was threatened with the dismissing of its general director and principal owner of the company Igor Zyuzin from its management - but there are still no specifics on the future of Mechel.
The first problems of Mechel were found at the end of February, when its shares "went" down for unknown reasons, although some analysts suspected that this was due to its debts. The manipulation with the shares was attributed to speculators, and the Central Bank undertook to investigate. But no one then imagined that everything would go so far.
But the company also had positive aspects in the current year, in particular, the sale of assets, and the fall of the ruble allowed it to significantly reduce its debt.

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The Russian stock market holds trading in different dynamics, and UC Rusal rating increases

In the first half of Wednesday bidding, the Russian stock market holds trading in different dynamics. Ruble MICEX index slightly grows, and USD RTS index reduces at the background of considerable growth in USD rate versus rubles.
The fall of oil below the key level of $80 per barrel of Brent oil pressures the whole market.
As at 11:43 (GMT+3), MICEX index increased by 0.1% to 1530.28 points, and RTS index declined by 2.04% to 1,032.95, MICEX reports.

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"Surgutneftegas" and NLMK benefit from the weak rouble.

"The revenue for the companies is in dollars, while the majority of their costs are in roubles, so the weak rouble makes the costs in dollar terms less", - the UBS analyst, Konstantin Cherepanov is happy for the raw materials and metallurgical companies. According to Bank of America Merrill Lynch estimates the revenue of the oil companies can grow by almost 5% with the 10% devaluation of the rouble. The effect of a weak rouble is more visible for the metallurgists - this year's change of course will give some of them an additional 12% rouble revenue.
Oil and Gas.
The underrun of the oil and gas industry is due to the fact that rapid devaluation only compensates for the drop in the oil prices. So raw materials of the Brent brand fell by 16.8% to $ 92.19 per barrel since the beginning of the year, the rouble over the same period depreciated against the American currency by 22.5%. In this case, since the beginning of Q3 the oil and the ruble are on a par – the currency fell within that period by 18.2%, and the oil - by 18%.

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Russian metallurgy increases

After stagnation of 2013, the Russian metallurgic sector has increased production again despite he common negative tendencies in the economy balancing near the zero. In H1 2014, the sector increased by 2.4% compared to 1.2% in Q1 2014.
The rolled steel yield increased by 3.9% including by 4.7% more of sort steel and by 3.7% more of steel plates. Sort steel yield increases mostly at the expense of growth in demand at the internal market by the construction sector. Last year they launched several new electric metal mini-mills producing hardware with total capacity of over 1.5 million tons. Steel plates yield increases at the expense of growth in exports. FTS reports that exports of flat sections made of carbonaceous steel increased in H1 2014 by 5.3% to 4.0 million tons, the highest results for the latest 4 years. Growth in exports is connected with ruble devaluation and political crisis in the Ukraine due to that the Ukrainian metal commodities was partially substituted with the Russian analogues. Due to this reason in 2014 one can observe growth in internal demand for the commodities of the Russian metal plants.

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The tax manoeuvre affects the metallurgists.

The RF Ministry of Industry and Trade is concerned about the oil reforms.
The tax manoeuvre in the oil industry, proposed by the RF Ministry of Finance to reduce indirect subsidies to the domestic market, may hit the competitiveness of other industries, according to the RF Ministry of Industry and Trade. The reduction of export duties on benzene and petroleum coke will lead to a shortage of raw materials and raise their prices, which will affect not only the petrochemists, but also the metallurgy, including the aluminum industry.
"The Kommersant" has a letter dated September 3rd from Viktor Evtuhov, the deputy head of the RF Ministry of Industry and Trade, to Arkady Dvorkovich, the Deputy Prime Minister, with comments regarding the proposals of the RF Ministry of Finance to amend the Tax Code and the law on customs tariff associated with the "big tax manoeuvre" in the oil industry, at the disposal. The manoeuvre was necessary to increase the revenues and reduce the indirect subsidies to the internal market (see "the Kommersant" dated August 21). The fears of the RF Ministry of Industry and Trade have led to changes in export tariff rates for benzene and petroleum coke. The duty on benzene (raw materials for the petrochemical industry) should be reduced from 66% of the duty on crude oil to 48% in 2015, to 40% in 2016 and to 30% in 2017. The RF Ministry of Finance proposes to set the coke rate no higher than 6.5% of the duty on crude oil. Now it is 66% and is expected to grow to 100% in 2015.

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Alcoa to start investment project without Rosnano

The American Alcoa has decided not to work with Rosnano in the first phase of creating the production of drilling pipes with nano-coatings in the Samara region. The Head of Rosnano, Anatoly Chubais believes that the company can still return to the project at a later stage. However, sources of the Kommersant claim that the participation of Rosnano at the first phase of the project isn’t particularly required: nanotechnologies will be used later.
The joint venture of Rosnano and American Alcoa in the Samara region "has been modified", the Head of Rosnano, Anatoly Chubais reported. According to him, the project for the production of drilling pipes with a nano-coating, which was originally planned to be carried out in the format of the joint venture, will be implemented, but Alcoa will invests on its own at the first stage. "There is a project, but there is no partnership," - Mr. Chubais noted. He didn’t directly link this with the sanctions against Russia. Alcoa stated to the Kommersant that the decision wasn’t connected with the sanctions.

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