Platinum, Oil and Gas
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.
The government may ease operation conditions of foreign state-owned companies in Russia. Until now, they could get in projects of strategic deposits development in the country not more than 25%. Primarily, this liberalization aims to attract investors from China, India and the Middle East. Primarily state-owned companies conduct international expansion just in these countries, and Russia will reorient to partnership with them in condition of conflict with the West over the Ukraine.
The Government has instructed the Ministry of Natural Resources, Ministry of Economy and FAS to consider whether to give foreign investors the opportunity to increase their share in companies, which develop subsoil plots of federal importance (large deposits of oil, gas, gold, nickel, platinum and copper) in excess of the limit, set by the legislation. This topic was raised by CEO of Metalloinvest Andrei Varichev at the Cabinet’s meeting on July 10; he offered to amend the law "in terms of increasing the possibility of the presence of foreign investors – certainly, through consideration by the Government Commission - from 25% to 49%". According to him, such measures are necessary for the development of large deposits, in particular to attract project financing.
Now, according to the federal law 57, there is a special procedure of foreign investments in companies that hold licenses for subsoil plots of federal importance. These companies are considered to be controlled by a foreign investor if it has a share of 25% or more.
The ex-head of "Rosneft" creates a joint venture with Alliance Oil.
In the biggest deal in the oil industry since "Rosneft" bought TNK-BP: the former head of the state company Eduard Hudaynatov, who went into private business, fulfilled Igor Sechin’s precept "to develop new ambitious projects in the fuel and energy sector" and combined assets in a joint venture with the Bazhaev family’s Alliance Oil. The total value of the joint venture could be up to $ 6 billion. Mr. Khudainatov’s independent oil and gas company receives 40 % in the joint venture, the top manager will become a CEO. But experts believe that in the future the "Alliance" group and Musa Bazhaev will leave the oil industry and focus on platinum.
Alliance Group of Musa Bazhaev can invest the funds from selling of Alliance Oil in development of Russian Platinum of Bazhaev, the source reported.
Alliance Oil could be sold when reconstruction of Khabarovsk oil refinery and construction of the branch line from ESPO are completed.
The Ministry of Regional Development values the plans for Arctic area development by 1.7 trillion rublesEdited by Rhod Mackenzie / 2013-11-05 08:21:22
The Ministry of Regional Development has completed elaboration of the state program for the development of the Russian part of the Arctic area and is going to bring it to the Government next week. The program should start in 2014. It values the plans by 1.7 trillion rubles, and awaits that a half of the sum will be provided by the investors.
Rusmininfo is pleased to announce some further enhancements to the news service.This week we have launched a full story selection system in Russian so now every user can select the news they want to receive according to their exact parameters in both Russian and English for full e-mail alerts.
To set up your new selections please log in and click on 'My News Alerts' then use the drop down menu and click on the companies,countries and sectors you want to receive news on.
If you have mislaid your log in details please e-mail [email protected]