Gold, Russia Oil and Gas
On Thursday, January 12th, the Group of companies Uzhuralzoloto (UGC) received an official letter from Transneft-Ural with the requirement to pay all the costs of the transfer of a section of the m
Within first ten months of the current year the total volume of polypropylene (PP) production in Russia increased by 8% compared to the same period of 2015 and amounted to more than 1.127 million t
The Head of Department for Subsoil Use in Bashkiria Raphael Gufranov has stated that oil reserves in Bashkiria will be enough for 26 years of the production, and copper, zinc, gold ore - for 20 yea
In January-September 2016, subsoil users of the Chukotka autonomous district produced 22.5 tons of gold, which is by 12% less than in the same period last year.
The Russian government expected to form a pool of Russian investors soon to participate in the auction for the right to develop the Sukhoi Log gold deposit in the Irkutsk region, the Deputy Prime Minister Aleksandr Khloponin responsible for the use of mineral resources told reporters. He hopes that the auction will take place before the end of this year.
The Government has allowed Russian investors to conduct geological exploration and production at areas of federal importance till the completion of prospecting. Previously, companies had to wait for five years until prospecting licenses would expire, and ask for permission to develop from the Government. Market participants support the changes, hoping to benefit from projects earlier. The access to strategic areas for foreign investors is limited for a while, but the Ministry of Natural Resources plans to simplify it too.
On October 28, the Prime Minister Dmitry Medvedev signed a decree (published on Tuesday), according to which Russian companies are entitled to conduct geological exploration and production at areas of federal subsoil before the completion of geological study. According to the explanatory note, the decision removes the contradictions between regulations, which defined this order in different ways: the regulation, approved by the Government in September 2008 and Article 6 of the Federal Law "On Subsoil". The decree also introduces a mechanism for attributing subsoil users to Russian or foreign ones through submission of documents to Rosnedra and the FAS. Now companies, controlled by foreigners, can obtain access to strategic fields with the permission of the Government.
In the conditions of a shortage of funds in Russian companies the Government can facilitate the procedure of foreign investors entering the producing projects in the Russian Federation. The Ministry of Natural Resources proposes to allow foreigners to own up to 25% in strategic fields without approval, and to obtain ashare from 25% to 49% on the resolution of the governmental commission. The first recipient of these exemptions may apply to Chinese companies. The Deputy Prime Minister Arkady Dvorkovich even doesn’t see obstacles to give them control.
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.
Devaluation has become not a threat, but a real gift for a number of Russian companies and even industries. Weak ruble helps them to increase revenue, reduce debts or at least to neutralize the losses due to other factors, such as falling oil prices. However, the devaluation brought some problems even for them, Zrpress.Ru reports.
The devaluation of the national currency brings not only negative consequences to the Russian economy in the form of rising inflation and devaluation of ruble savings. This year weakening of the ruble delighted a large group of Russian companies.
"Russian oil companies are not very sensitive to the decline in oil prices, due to the tendency of the depreciation of the ruble against the dollar".
In the current situation, those benefit that receive the proceeds in foreign currency, and bears the cost in rubles. Accordingly, exporters will primarily gain.
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.