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Putin Bets on Gazprom Purge as Slowdown Threatens Legacy

Vladimir Putin wasn’t having a great day. The Russian president had spent the August morning in a helicopter over Khabarovsk, near the Chinese border, surveying flood damage that had left tens of thousands of people homeless. Then he met with senior advisers who were on the trip, for a briefing on economic issues. They drew parallels to another brewing storm: The energy-export model Putin had relied on to restore Russia’s economic strength had run its course, he was told, said two officials on the trip. The state-dominated economy needed a shock, and, to prevent stagnation as growth slowed, a reset. Something had to be done. The solution Putin chose will ripple through the entire Russian economy starting next year: He elected to freeze prices at such powerful state companies as OAO Gazprom (GAZP) and OAO Russian Railways. The plan is to set off a chain reaction that will lead […]

Posted On : Published By : Tom Whipple
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No one wants Russia to implode but optimists have their work cut out

No one wants Russia to implode but optimists have their work cut out For the state of Russia’s economy is parlous. A couple of weeks ago, the Russian ministry of economy slashed its forecast for average annual growth between now and 2030 from 4pc to 2.5pc. In fact, Russia’s economy has recently been extremely weak. It fell into technical recession in the first half of the year and it looks likely to post growth of only about 1pc this year, down from an average over the past decade of just under 5pc. Russia’s previously strong growth earned her inclusion in the group of countries known as the BRICs. In fact, this gave a misleading impression of Russia’s underlying dynamism. Russia’s strong past growth reflected a series of one-off factors which cannot be repeated. Most importantly, over the past 10 years, higher oil prices have increased Russia’s export earnings, and […]

Posted On : Published By : ASPO-USA
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Wood Mackenzie: Expand Russia's energy horizons

Ian Thom, a Russian analyst at energy consultant group Wood Mackenzie , said there isn’t enough focus on unconventional resources in the Russian energy sector. “There has been comparatively less commitment to unconventional resources in Russia,” he said in a statement Tuesday from Moscow. Wood Mackenzie said there’s too much focus in Russia on conventional onshore projects instead of tight oil, liquefied natural gas and arctic developments, which may be more difficult to exploit. Thom said Russian reserves represent about 15 percent of the global oil and natural gas production while its energy sector accounts for 7 percent of the global capital expenditure, funds used by a company to acquire or upgrade its assets. Russia has focused its own efforts on arctic exploration and LNG options for Asian economies. Thom said there has been some attention to those reserves from international investors but production […]

Posted On : Published By : Tom Whipple
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Wood Mackenzie: Expand Russia’s energy horizons

Ian Thom, a Russian analyst at energy consultant group Wood Mackenzie , said there isn’t enough focus on unconventional resources in the Russian energy sector. “There has been comparatively less commitment to unconventional resources in Russia,” he said in a statement Tuesday from Moscow. Wood Mackenzie said there’s too much focus in Russia on conventional onshore projects instead of tight oil, liquefied natural gas and arctic developments, which may be more difficult to exploit. Thom said Russian reserves represent about 15 percent of the global oil and natural gas production while its energy sector accounts for 7 percent of the global capital expenditure, funds used by a company to acquire or upgrade its assets. Russia has focused its own efforts on arctic exploration and LNG options for Asian economies. Thom said there has been some attention to those reserves from international investors but production […]

Posted On : Published By : Tom Whipple
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Ukraine, Gazprom make amends

KIEV, Ukraine, Nov. 19 (UPI) — Ukrainian Energy Minister Eduard Stavytsky said a deal was reached with Russian energy company Gazprom that may avert a winter gas crisis. Gazprom in 2009 cut gas supplies to Ukraine following contractual disputes over payments. In early November, Gazprom said Ukraine had more than $880 million in unsettled debt from its August natural gas bills, sparking fears of another gas spat. Stavytsky said Monday both sides reached an agreement that may stave off another payment row. “We have reached a compromise that will allow Ukraine to timely pay for the natural resources that we receive under the new schedule that has been signed, and meet the needs of all of our partners — on behalf of the supplier of gas — Gazprom and on behalf of the transit [country],” he was quoted by the National News Agency of Ukraine as saying. The minister […]

Posted On : Published By : Tom Whipple
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Russia invites Syrian opposition to Moscow for talks: FM

MOSCOW, Nov. 18 (Xinhua) — Russia has invited Syrian opposition groups to travel to Moscow for talks aimed at bridging their differences on the planned Geneva peace conference, Foreign Minister Sergei Lavrov said Monday. Leaders of the Istanbul-based Syrian National Coalition (SNC) ” did not refuse to come to Moscow, and they are studying our proposal,” Lavrov told a news briefing. He confirmed that Russian Deputy Foreign Minister Mikhail Bogdanov held talks with the SNC leaders in Istanbul last week. Russia’s mediation is to help the Syrian opposition to form a single delegation to the talks, which the United States and Russia are trying to convene in Geneva by the end of the year, Lavrov said. The proposed meeting is to “consolidate positive trends,” which included negotiations which have begun between the SNC, one of Kurdish groups and the so-called “internal opposition,” about finding common approaches to the peace […]

Posted On : Published By : Tom Whipple
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Gazprom Says Europe Exports to Hit 5-Year High

MOSCOW—Russian state natural gas firm OAO Gazprom OGZPY +2.40% Gazprom OAO ADS U.S.: OTCBB $ 8.96 +0.21 +2.40% Nov. 14, 2013 3:58 pm Volume (Delayed 15m) : 1.37M AFTER HOURS $ 8.84 -0.12 -1.34% Nov. 12, 2013 4:07 pm Volume (Delayed 15m): 419,636 P/E Ratio 2.65 Market Cap $103.25 Billion Dividend Yield 6.24% Rev. per Employee $384,616 11/14/13 Paul McCartney Asks Vladimir P… 11/14/13 Gazprom Says Europe Exports to… 11/12/13 Russia, Vietnam Sign 17 Deals … More quote details and news » OGZPY in Your Value Your Change Short position Thursday said it was on track to deliver its highest volumes of gas to Europe this year since 2008, as demand for its pipeline gas spiked amid lower supplies of liquefied gas delivered by tanker. Gazprom profits slumped last year as sales in Europe dropped due to increased competition and lower demand. But exports to Europe were up 15.6% […]

Posted On : Published By : Tom Whipple