DOCSLIB.ORG

Russia Mining 2019-2020 KY GG AJP

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Russia Mining 2019-2020 KY GG AJP RUSSIA MINING SECTOR 2019/2020 An EMIS Insights Industry Report Any redistribution of this information is strictly prohibited. Copyright © 2019 EMIS, all rights reserved. CONTACT US www.emis.com FOLLOW US ABBREVIATIONS CAGR Compound Annual Growth Rate CDDFEC Central Dispatching Department of Fuel and Energy Complex CIS Commonwealth of Independent States ECM Equity Capital Market FASU Federal Agency for Subsoil Use FCS Federal Customs Service FMST Federal Ministry of Sustainability and Tourism FSSNR Federal Service for Supervision of Natural Resource GVA Gross Value Added HBI Hot Briquetted Iron LME London Metal Exchange MNR Ministry of Natural Resources and Environment M&Q Mining and Quarrying oz Ounce koz Thousand ounces moz Million ounces RGMU Russian Gold Miners Union RUB Russia Rouble Federal Service for Ecological, Technological and Nuclear Rostekhnadzor Supervision USGS United States Geological Survey Any redistribution of this information is strictly prohibited. Copyright © 2019 EMIS, all rights reserved. 01 EXECUTIVE SUMMARY p.5 Sector in Numbers Sector Overview Sector Snapshot Outlook Driving Forces Restraining Forces 02 SECTOR IN FOCUS p.13 Main Economic Indicators Main Sector Indicators Production Global Positioning Foreign Trade Foreign Investments Employment and Wages 03 COMPETITIVE LANDSCAPE p.24 Timeline Russia Mining Highlights Coal Market Iron Ore Market Nickel Market Diamond Market Gold Market M&A Deals M&A Activity 04 COMPANIES IN FOCUS p.34 Norilsk Nickel Metalloinvest EVRAZ ALROSA Polyus Gold CONTENTS 05 REGULATORY ENVIRONMENT p.51 Main Regulatory Bodies Government Regulations Licences 06 COMPETITIVE LANDSCAPE p.56 Highlights Main Events Focus Point – Coal Production by Area Coal Production Coal Exports Focus Point – Metal Ore Production by Federal District Iron Ore Production Iron Ore Foreign Trade Iron Ore Prices Nickel Production Nickel Foreign Trade Nickel Prices Copper Production Copper Foreign Trade Copper Price 07 PRECIOUS METALS & p.73 MINERALS Highlights Main Events Gold Mining Focus Point – Gold Mining Resources Gold Prices Diamonds Mining Focus Point – Alrosa Largest Diamond Production Regions CONTENTS RUSSIA MINING SECTOR 2019/2020 An EMIS Insights Industry Report CONTENTS 01 EXECUTIVE SUMMARY Any redistribution of this information is strictly prohibited. Copyright © 2019 EMIS, all rights reserved. 5 01 EXECUTIVE SUMMARY CONTENTS Sector in Numbers 12.9% RUB 10.8% of GDP 18.2tn CAGR M&Q Sector Production Production Growth GVA Value 2012–2018 No. 1 No. 2 No. 3 Diamond Producer Coal Reserves Gold Producer Globally Holder Globally Globally USD USD 1.1mn 290.7bn 5.0bn Mineral Product Sector Exports Net FDI Employment Source: Statistics Office, FCS, CEIC, USGS, BP Statistical Review of World Energy RUSSIA MINING SECTOR 2019/2020 6 An EMIS Insights Industry Report 01 EXECUTIVE SUMMARY CONTENTS Sector Overview The mining industry is of strategic importance to the Russian economy, contributing about 12% to the GDP, providing jobs to 1.1mn people and contributing a third to government revenues. Since Russia hosts one of the world’s largest mineral resources, its mining sector is an important supplier for the global economy. In 2018, Russia ranked as the largest miner of rough diamonds, the third largest gold producer and the third largest coal exporter. The mining industry is a significant contributor to overall exports and an important source of hard currency for Russia. In 2018, exports of minerals accounted for close to 65% of the country’s total exports. Entry Modes The government has imposed high entry barriers, restricting foreign ownership and investment in the sector. Foreign investors are allowed to own a stake of up to 25% in any Russian mine and they have to be granted a special permit by the regulator. Local companies are privileged in terms of possession of mines and it is be difficult for a foreign company to get a mining licence. The best way to enter the sector is through joint ventures with local players and minority stake acquisitions. In search of extra cash, the government is offering for sale stakes in mineral raw commodity producers, creating opportunities for new players to enter the market. Foreign investors can participate in this privatisation provided they register a subsidiary in Russia. However, they will only be allowed to buy minority stakes, as control over strategic enterprises must remain within the Russian state. Segment Opportunities The best opportunities for growth exist in the segment of iron ore mining as the global market is currently experiencing an undersupply due to the collapse of a dam in Brazil in January 2019, which derailed the world's biggest iron ore producer Vale. Strong demand from Asia will support an increase in Russia’s coal exports, which hit record levels in 2017 and look set to continue rising over the next few years as China banned imports from North Korea and continues to eliminate outdated coal capacity. The segment of nickel mining, which is presented largely by Norilsk Nickel, is positioned to gain from the rapidly growing use of electric vehicles (EV). The company is getting involved in battery manufacturing through a partnership with BASF in Finland and plans to expand its nickel production by 15% over 2019–2026. Government Policy All mineral resources located underground in Russia are the property of the state regardless of land ownership. In order to conduct exploration and mining activities, an entity must obtain one of the three types of subsoil licences: exploration, production or a combined licence. The mining and quarrying sector is highly regulated and foreign players are restricted form entering it. Source: EMIS Insights, MNR, Company Data, USGS, BP Statistical Review of World Energy, FCS, CEIC RUSSIA MINING SECTOR 2019/2020 7 An EMIS Insights Industry Report 01 EXECUTIVE SUMMARY CONTENTS Sector Snapshot Russia Mining Sector PRODUCTION RUB 18.2tn USD 291.8bn Value Value Mining of Energy Producing Materials: RUB 14.7tn Mining of Non-Energy Materials: RUB 3.6tn EXPORTS USD 290.7bn TURNOVER RUB 17.7tn Mining and Quarrying Industry Sales Energy Segment: Non-Energy IMPORTS RUB 14.1tn Segment: RUB 3.7tn USD 5.0bn Sales of Energy-Related Sales of Energy -Related Materials Materials KEY PLAYERS’ REVENUES 1. Evraz – USD 12.8bn 2. Norilsk Nickel – USD 11.7bn 3. Metalloinvest – USD 7.2bn 4. Alrosa – RUB 299.6bn 5. Polyus Gold – USD 2.9bn Note: Data for 2018. Source: Statistics Office, FCS, CEIC, Company Data RUSSIA MINING SECTOR 2019/2020 8 An EMIS Insights Industry Report 01 EXECUTIVE SUMMARY CONTENTS Sector Snapshot Russia Mining Sector The Russian mining and quarrying (M&Q) sector generated a gross value added (GVA) of RUB 12tn in 2018, equal to nearly 13% of the country’s GDP. The M&Q production value increased by 34% y/y to RUB 18.2tn in 2018, driven by the segment of energy commodities, which experienced an expansion of 40% y/y to RUB 14.7tn (80% of the total), while the non-energy commodities added 15% y/y to RUB 3.6tn (20% of the total). Due to the depreciation of the rouble, the production value of M&Q grew at the slower rate in US dollar terms of 25% y/y to USD 291.8bn. M&Q trade turnover increased by 31% y/y to RUB 17.7tn, mainly as a result of commodity price rises on the global markets. Coal trade turnover added 29% y/y to RUB 1.7tn, the oil and gas trade turnover rallied by 39% y/y to RUB 12.4tn, while the trade turnover with metal ores experienced a rise of 18% y/y to RUB 1.2tn. Russia is a major supplier for the global economy both of energy and non-energy minerals. In 2018, the country’s mineral trade surplus widened by 37% y/y to USD 285.7bn, reflecting stronger export demand and rising commodity prices. The overall minerals exports jumped by 36.1% y/y to USD 290.7bn, while imports went up by 11.8% y/y to USD 5bn. In 2018, Russian coal production hit a 5-year high reaching 440.2mn tonnes, up 6.9% y/y, driven mainly by rising shipments abroad, underpinned by higher market prices. In 2018, iron ore production advanced by 0.9% y/y on stronger global demand as well as supply rationalisation in China, which supported iron ore prices in 2018. Nickel production, on the other hand, dropped by an estimated 1.9% y/y to 210,000 tonnes in 2018, according to data provided by the United States Geological Survey (USGS). Higher global demand from cable and wire manufacturers lifted the Russian copper production volumes by 6% y/y to 747,700 tonnes. The production of gold went up by 4% y/y to 264,400 tonnes, while that of diamonds shrank by 2.8% y/y to 24.4mn carats. One of the largest players in the mining sector is Norilsk Nickel, which is also the world’s largest producer of nickel and palladium and one of its leading producers of platinum and copper. The company generated revenues of USD 11.7bn in 2018, up 228% y/y. Another major player in the sector is EVRAZ – a vertically integrated steel, mining and vanadium business company. It is among the top steel producers in the world, with revenues of USD 12.8bn in 2018, up 19% y/y. PJSC Alrosa is a government-controlled diamond-mining company that holds 28% of the world’s total diamond production, making it the largest global diamond player. In 2018, Alrosa earned RUB 300bn in revenues, or 9% more than in 2017. Metalloinvest is a vertically integrated iron ore and steel company and the largest iron ore producer in Russia. Metalloinvest had revenues of USD 7.2bn in 2018, an increase of 15% y/y.
Load more

Recommended publications
  • Expiry Notice
    Expiry Notice 19 January 2018 London Stock Exchange Derivatives Expiration prices for IOB Derivatives Please find below expiration prices for IOB products expiring in January 2018: Underlying Code Underlying Name Expiration Price AFID AFI DEVELOPMENT PLC 0.1800 ATAD PJSC TATNEFT 58.2800 FIVE X5 RETAIL GROUP NV 39.2400 GAZ GAZPROM NEFT 23.4000 GLTR GLOBALTRANS INVESTMENT PLC 9.9500 HSBK JSC HALYK SAVINGS BANK OF KAZAKHSTAN 12.4000 HYDR PJSC RUSHYDRO 1.3440 KMG JSC KAZMUNAIGAS EXPLORATION PROD 12.9000 LKOD PJSC LUKOIL 67.2000 LSRG LSR GROUP 2.9000 MAIL MAIL.RU GROUP LIMITED 32.0000 MFON MEGAFON 9.2000 MGNT PJSC MAGNIT 26.4000 MHPC MHP SA 12.8000 MDMG MD MEDICAL GROUP INVESTMENTS PLC 10.5000 MMK OJSC MAGNITOGORSK IRON AND STEEL WORKS 10.3000 MNOD MMC NORILSK NICKEL 20.2300 NCSP PJSC NOVOROSSIYSK COMM. SEA PORT 12.9000 NLMK NOVOLIPETSK STEEL 27.4000 NVTK OAO NOVATEK 128.1000 OGZD GAZPROM 5.2300 PLZL POLYUS PJSC 38.7000 RIGD RELIANCE INDUSTRIES 28.7000 RKMD ROSTELEKOM 6.9800 ROSN ROSNEFT OJSC 5.7920 SBER SBERBANK 18.6900 SGGD SURGUTNEFTEGAZ 5.2450 SMSN SAMSUNG ELECTRONICS CO 1148.0000 SSA SISTEMA JSFC 4.4200 SVST PAO SEVERSTAL 16.8200 TCS TCS GROUP HOLDING 19.3000 TMKS OAO TMK 5.4400 TRCN PJSC TRANSCONTAINER 8.0100 VTBR JSC VTB BANK 1.9370 Underlying code Underlying Name Expiration Price D7LKOD YEAR 17 DIVIDEND LUKOIL FUTURE 3.2643 YEAR 17 DIVIDEND MMC NORILSK NICKEL D7MNOD 1.8622 FUTURE D7OGZD YEAR 17 DIVIDEND GAZPROM FUTURE 0.2679 D7ROSN YEAR 17 DIVIDEND ROSNEFT FUTURE 0.1672 D7SBER YEAR 17 DIVIDEND SBERBANK FUTURE 0.3980 D7SGGD YEAR 17 DIVIDEND SURGUTNEFTEGAZ FUTURE 0.1000 D7VTBR YEAR 17 DIVIDEND VTB BANK FUTURE 0.0414 Members are asked to note that reports showing exercise/assignments should be available by approx.
    [Show full text]
  • FY2020 Financial Results
    Norilsk Nickel 2020 Financial Results Presentation February 2021 Disclaimer The information contained herein has been prepared using information available to PJSC MMC Norilsk Nickel (“Norilsk Nickel” or “Nornickel” or “NN”) at the time of preparation of the presentation. External or other factors may have impacted on the business of Norilsk Nickel and the content of this presentation, since its preparation. In addition all relevant information about Norilsk Nickel may not be included in this presentation. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information. Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and Norilsk Nickel cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of major risk factors. There may be other factors, both known and unknown to Norilsk Nickel, which may have an impact on its performance. This presentation should not be relied upon as a recommendation or forecast by Norilsk Nickel. Norilsk Nickel does not undertake an obligation to release any revision to the statements contained in this presentation. The information contained in this presentation shall not be deemed to be any form of commitment on the part of Norilsk Nickel in relation to any matters contained, or referred to, in this presentation. Norilsk Nickel expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the contents of this presentation.
    [Show full text]
  • The Russia You Never Met
    The Russia You Never Met MATT BIVENS AND JONAS BERNSTEIN fter staggering to reelection in summer 1996, President Boris Yeltsin A announced what had long been obvious: that he had a bad heart and needed surgery. Then he disappeared from view, leaving his prime minister, Viktor Cher- nomyrdin, and his chief of staff, Anatoly Chubais, to mind the Kremlin. For the next few months, Russians would tune in the morning news to learn if the presi- dent was still alive. Evenings they would tune in Chubais and Chernomyrdin to hear about a national emergency—no one was paying their taxes. Summer turned to autumn, but as Yeltsin’s by-pass operation approached, strange things began to happen. Chubais and Chernomyrdin suddenly announced the creation of a new body, the Cheka, to help the government collect taxes. In Lenin’s day, the Cheka was the secret police force—the forerunner of the KGB— that, among other things, forcibly wrested food and money from the peasantry and drove some of them into collective farms or concentration camps. Chubais made no apologies, saying that he had chosen such a historically weighted name to communicate the seriousness of the tax emergency.1 Western governments nod- ded their collective heads in solemn agreement. The International Monetary Fund and the World Bank both confirmed that Russia was experiencing a tax collec- tion emergency and insisted that serious steps be taken.2 Never mind that the Russian government had been granting enormous tax breaks to the politically connected, including billions to Chernomyrdin’s favorite, Gazprom, the natural gas monopoly,3 and around $1 billion to Chubais’s favorite, Uneximbank,4 never mind the horrendous corruption that had been bleeding the treasury dry for years, or the nihilistic and pointless (and expensive) destruction of Chechnya.
    [Show full text]
  • Information on IRC – R.O.S.T., the Registrar of the Company and the Acting Ballot Committee of MMC Norilsk Nickel
    Information on IRC – R.O.S.T., the registrar of the Company and the acting Ballot Committee of MMC Norilsk Nickel IRC – R.O.S.T. (former R.O.S.T. Registrar merged with Independent Registrar Company in February 2019) was established in 1996. In 2003–2015, Independent Registrar Company was a member of Computershare Group, a global leader in registrar and transfer agency services. In July 2015, IRC changed its ownership to pass into the control of a group of independent Russian investors. In December 2016, R.O.S.T. Registrar and Independent Registrar Company, both owned by the same group of independent investors, formed IRC – R.O.S.T. Group of Companies. In 2018, Saint Petersburg Central Registrar joined the Group. In February 2019, Independent Registrar Company merged with IRC – R.O.S.T. Ultimate beneficiaries of IRC – R.O.S.T. Group are individuals with a strong background in business management and stock markets. No beneficiary holds a blocking stake in the Group. In accordance with indefinite License No. 045-13976-000001, IRC – R.O.S.T. keeps records of holders of registered securities. Services offered by IRC – R.O.S.T. to its clients include: › Records of shareholders, interestholders, bondholders, holders of mortgage participation certificates, lenders, and joint property owners › Meetings of shareholders, joint owners, lenders, company members, etc. › Electronic voting › Postal and electronic mailing › Corporate consulting › Buyback of securities, including payments for securities repurchased › Proxy solicitation › Call centre services › Depositary and brokerage, including escrow agent services IRC – R.O.S.T. Group invests a lot in development of proprietary high-tech solutions, e.g.
    [Show full text]
  • Notes on Moscow Exchange Index Review
    Notes on Moscow Exchange index review Moscow Exchange approves the updated list of index components and free float ratios effective from 16 March 2018. X5 Retail Group N.V. (DRs) will be added to Moscow Exchange indices with the expected weight of 1.13 per cent. As these securities were offered initially, they were added without being in the waiting list under consideration. Thus, from 16 March the indices will comprise 46 (component stocks. The MOEX Russia and RTS Index moved to a floating number of component stocks in December 2017. En+ Group plc (DRs) will be in the waiting list to be added to Moscow Exchange indices, as their liquidity rose notably over recent three months. NCSP Group (ords) with low liquidity, ROSSETI (ords) and RosAgro PLC with their weights now below the minimum permissible level (0.2 per cent) will be under consideration to be excluded from the MOEX Russia Index and RTS Index. The Blue Chip Index constituents remain unaltered. X5 Retail Group (DRs), GAZ (ords), Obuvrus LLC (ords) and TNS energo (ords) will be added to the Broad Market Index, while Common of DIXY Group and Uralkali will be removed due to delisting expected. TransContainer (ords), as its free float sank below the minimum threshold of 5 per cent, and Southern Urals Nickel Plant (ords), as its liquidity ratio declined, will be also excluded. LSR Group (ords) will be incuded into SMID Index, while SOLLERS and DIXY Group (ords) will be excluded due to low liquidity ratio. X5 Retail Group (DRs) and Obuvrus LLC (ords) will be added to the Consumer & Retail Index, while DIXY Group (ords) will be removed from the Index.
    [Show full text]
  • An Overview of Boards of Directors at Russia's Largest Public Companies
    An Overview Of Boards Of Directors At Russia’s Largest Public Companies Andrei Rakitin Milena Barsukova Arina Mazunova Translated from Russian August 2020 Key Results According to information disclosed by 109 of Russia’s largest public companies: “Classic” board compositions of 11, nine, and seven seats prevail The total number of persons on Boards of the companies under study is not as low as it might seem: 89% of all Directors were elected to only one such Board Female Directors account for 12% and are more often elected to the audit, nomination, and remuneration committees than to the strategy committee Among Directors, there are more “humanitarians” than “techies,” while the share of “techies” among chairs is greater than across the whole sample The average age for Directors is 53, 56 for Chairmen, and 58 for Independent Directors Generation X is the most visible on Boards, and Generation Y Directors will likely quickly increase their presence if the impetuous development of digital technologies continues The share of Independent Directors barely reaches 30%, and there is an obvious lack of independence on key committees such as audit Senior Independent Directors were elected at 17% of the companies, while 89% of Chairs are not independent The average total remuneration paid to the Board of Directors is RUR 69 million, with the difference between the maximum and minimum being 18 times Twenty-four percent of the companies disclosed information on individual payments made to their Directors. According to this, the average total remuneration is approximately RUR 9 million per annum for a Director, RUR 17 million for a Chair, and RUR 11 million for an Independent Director The comparison of 2020 findings with results of a similar study published in 2012 paints an interesting dynamic picture.
    [Show full text]
  • PRESS RELEASE JSC ALROSA Announces Purchase of a 25
    PRESS RELEASE JSC ALROSA Announces Purchase of a 25 Percent Interest in OJSC Polyus Gold August, 2007, Moscow. Joint-Stock Company ALROSA signed an agreement with ONEXIM Group to buy a 25 percent stake in the Open Joint-Stock Company Polyus Gold (RTS, MICEX, and LSE – PLZL), Russia’s largest gold producer. “This deal was implemented as part of the development strategy approved by the Supervisory Board of JSC ALROSA. Among other things, ALROSA focuses on diversifying into other sectors. The purchase of a significant stake in Polyus Gold, which pursues an effective production strategy, will enable ALROSA to access a market with considerable long-term prospects and will further boost the development and economic growth of regions in Central and Eastern Siberia,” said President of ALROSA Sergei Vybornov. Open Joint-Stock Company Polyus Gold (RTS, MICEX, and LSE – PLZL) – is the leading gold producer in Russia and one of the biggest players in gold mining in the world in terms of deposits and production. The asset portfolio of Polyus Gold includes ore and alluvial gold deposits in the Krasnoyarsk Territory, the Irkutsk, Magadan, and Amur regions, and in the Republic of Sakha (Yakutia), where the company operates gold exploration and mining projects. As of January 1, 2007, the mineral resource base of OJSC Polyus Gold comprises 3,000.7 tons of gold in B+C1+C2 reserves, including 2,149 tons of B+C1 reserves. Joint-Stock Company ALROSA – is a global leader in diamond exploration, mining and sales of rough diamonds, and in cut diamond manufacture. ALROSA accounts for 97 percent of Russia’s rough diamond production and for 25 percent of the global output of rough diamonds.
    [Show full text]
  • Global Expansion of Russian Multinationals After the Crisis: Results of 2011
    Global Expansion of Russian Multinationals after the Crisis: Results of 2011 Report dated April 16, 2013 Moscow and New York, April 16, 2013 The Institute of World Economy and International Relations (IMEMO) of the Russian Academy of Sciences, Moscow, and the Vale Columbia Center on Sustainable International Investment (VCC), a joint center of Columbia Law School and the Earth Institute at Columbia University in New York, are releasing the results of their third survey of Russian multinationals today.1 The survey, conducted from November 2012 to February 2013, is part of a long-term study of the global expansion of emerging market non-financial multinational enterprises (MNEs).2 The present report covers the period 2009-2011. Highlights Russia is one of the leading emerging markets in terms of outward foreign direct investments (FDI). Such a position is supported not by several multinational giants but by dozens of Russian MNEs in various industries. Foreign assets of the top 20 Russian non-financial MNEs grew every year covered by this report and reached US$ 111 billion at the end of 2011 (Table 1). Large Russian exporters usually use FDI in support of their foreign activities. As a result, oil and gas and steel companies with considerable exports are among the leading Russian MNEs. However, representatives of other industries also have significant foreign assets. Many companies remained “regional” MNEs. As a result, more than 66% of the ranked companies’ foreign assets were in Europe and Central Asia, with 28% in former republics of the Soviet Union (Annex table 2). Due to the popularity of off-shore jurisdictions to Russian MNEs, some Caribbean islands and Cyprus attracted many Russian subsidiaries with low levels of foreign assets.
    [Show full text]
  • Press Release (PDF)
    MECHEL REPORTS THE FY2020 FINANCIAL RESULTS Consolidated revenue – 265.5 bln rubles (-8% compared to FY 2019) EBITDA* – 41.1 bln rubles (-23% compared to FY 2019) Profit attributable to equity shareholders of Mechel PAO – 808 mln rubles Moscow, Russia – March 11, 2021 – Mechel PAO (MOEX: MTLR, NYSE: MTL), a leading Russian mining and steel group, announces financial results for the FY 2020. Mechel PAO’s Chief Executive Officer Oleg Korzhov commented: “The Group’s consolidated revenue in 2020 totaled 265.5 billion rubles, which is 8% less compared to 2019. EBITDA amounted to 41.1 billion rubles, which is 23% less year-on-year. “The mining division accounted for about 60% of the decrease in revenue. This was due to a significant decrease in coal prices year-on-year. In conditions of coronavirus limitations, many steelmakers around the world cut down on production, which could not fail to affect the demand for metallurgical coals and their price accordingly. By the year’s end the market demonstrated signs of a recovery, but due to China’s restrictions on Australian coal imports, coal prices outside on China remained low under this pressure. High prices in China have supported our mining division’s revenue to a certain extent. In 4Q2020 we increased shipments to China as best we could considering our long-term contractual obligations to partners from other countries. These circumstances became in many ways the reason for a decrease in our consolidated EBITDA. In Mechel’s other divisions EBITDA dynamics were positive year-on-year. “The decrease in the steel division’s revenue was also due to the coronavirus pandemic.
    [Show full text]
  • Transparency and Disclosure by Russian State-Owned Enterprises
    Transparency And Disclosure By Russian State-Owned Enterprises Standard & Poor’s Governance Services Prepared for the Roundtable on Corporate Governance organized by the OECD in Moscow on June 3, 2005 Julia Kochetygova Nick Popivshchy Oleg Shvyrkov Vladimir Todres Christine Liadskaya June 2005 Transparency & Disclosure by Russian State-Owned Enterprises Transparency and Disclosure by Russian State-Owned Enterprises Executive Summary This survey of transparency and disclosure (T&D) by Russian state-owned companies by Standard & Poor’s Governance Services was prepared at the request of the OECD Roundtable on Corporate Governance. According to the OECD Guidelines on Corporate Governance of SOEs, “the state should act as an informed and active owner and establish a clear and consistent ownership policy, ensuring that the governance of state-owned enterprises is carried out in a transparent and accountable manner” (Chapter III). Further, “large or listed SOEs should disclose financial and non financial information according to international best practices” (Chapter V). In stark contrast with these principles, the study revealed consistent differences in disclosure standards between the state-controlled and similarly sized public Russian companies. This is in line with the notion that transparency of state-controlled enterprises is hampered by the tendency of the Russian government and individual officials to use their influence on such companies to promote political or individual goals that often diverge from commercial motives and investor interests. High standards of transparency and disclosure, on the other hand, are a cornerstone in the foundation of good governance. They provide legitimate stakeholders--whether creditors, minority shareholders, taxpayers, or the general public--with the information they need to be able to begin to hold government decision-makers accountable for their actions.
    [Show full text]
  • Yakutia) “…The Republic of Sakha (Yakutia) Is the Largest Region in the Russian Federation and One of the Richest in Natural Resources
    Investor's Guide to the Republic of Sakha (Yakutia) “…The Republic of Sakha (Yakutia) is the largest region in the Russian Federation and one of the richest in natural resources. Needless to say, the stable and dynamic development of Yakutia is of key importance to both the Far Eastern Federal District and all of Russia…” President of the Russian Federation Vladimir Putin “One of the fundamental priorities of the Government of the Republic of Sakha (Yakutia) is to develop comfortable conditions for business and investment activities to ensure dynamic economic growth” Head of the Republic of Sakha (Yakutia) Egor Borisov 2 Contents Welcome from Egor Borisov, Head of the Republic of Sakha (Yakutia) 5 Overview of the Republic of Sakha (Yakutia) 6 Interesting facts about the Republic of Sakha (Yakutia) 7 Strategic priorities of the Republic of Sakha (Yakutia) investment policy 8 Seven reasons to start a business in the Republic of Sakha (Yakutia) 10 1. Rich reserves of natural resources 10 2. Significant business development potential for the extraction and processing of mineral and fossil resources 12 3. Unique geographical location 15 4. Stable credit rating 16 5. Convenient conditions for investment activity 18 6. Developed infrastructure for the support of small and medium-sized enterprises 19 7. High level of social and economic development 20 Investment infrastructure 22 Interaction with large businesses 24 Interaction with small and medium-sized enterprises 25 Other organisations and institutions 26 Practical information on doing business in the Republic of Sakha (Yakutia) 27 Public-Private Partnership 29 Information for small and medium-sized enterprises 31 Appendix 1.
    [Show full text]
  • Holborn Gate Master Fax Template
    **CONFERENCE CALL** MECHEL OAO (NYSE:MTL) Scheduled for: Thursday, December 18, 2008 10:00 AM New York Time 3:00 PM London Time 6:00 PM Moscow Time __________________________________________________________________ You are cordially invited to participate on a conference call with the management of Mechel OAO to discuss our 2008 first half and nine months results. Igor Zyuzin, Chief Executive Officer, will host the call. Please call the number below approximately 10 minutes prior to the scheduled time of the call, quoting Mechel, and the chairperson’s name, Alexander Tolkach. Conference Call Phone Numbers: US: +1 718 354 1158 International: +44 20 7138 0810 Confirmation Code: 8468348 The earnings release will be distributed prior to the conference call. In addition, the conference call will be available live via the Internet. To access the call and associated slides, please visit our website at: http://www.mechel.com/investors/fresults/index.wbp on the day of the call. A replay of the call will be available until 11:59PM New York time on December 24th. To access, please dial, US: +1 718 354 1112; UK: +44 20 7806 1970. From both areas, enter: 8468348# to access. MECHEL 2008 FIRST HALF AND NINE MONTHS RESULTS CONFERENCE CALL TO BE BROADCAST OVER THE INTERNET Moscow, Russia — December 15, 2008 — Mechel OAO (NYSE: MTL) announces that it intends to release its results for the first half ending June 30, 2008, and the nine months ending on September 30, 2008 on Thursday, December 18, 2008. In conjunction with this release, Mechel will host a conference call, which will be simultaneously broadcast live over the Internet.
    [Show full text]