Lukoil to own around 10% of Yandex, oil co shareholders not involved in deal

Lukoil to own around 10% of Yandex, oil co shareholders not involved in deal

MRC -- The Lukoil Group will have a stake of approximately 10% in Yandex after a deal for a consortium of investors to buy the tech company has been closed, the oil company said in a statement.

"The transaction will close upon receipt of the necessary approvals and will be carried out without the participation of shareholders in Lukoil and related parties," it said.

"The acquisition of a stake in one of the digital technologies leaders is a portfolio venture investment for the Lukoil group, which is expected, among other things, to contribute to the development of high-tech solutions and increase efficiency primarily in the company's retail business," it said.

Yandex N.V . (YNV), the Dutch parent company of the Yandex group, has agreed to sell the group's Russian business to a consortium of private investors for 475 billion rubles.

The terms of the deal factor in the Russian authorities' standard requirement for at least a 50% discount on the market price when nonresidents sell assets. Yandex N.V.'s weighted average market capitalization in the three months that ended on January 31 was about $10.2 billion (918 billion rubles), and the assets included in the deal generated more than 95% of the group's revenue in the first nine months of 2023, Yandex said.

The consideration for sale will be payable in a combination of cash and Class A shares of Yandex N.V., with at least 50% of the consideration to be paid in cash. The seller will therefore receive the cash equivalent of at least 230 billion rubles in Chinese yuan and approximately 176 million Yandex N.V. Class A shares. The buyer already holds or will acquire the consideration shares, the press release said.

As a result of the deal, a recently registered international joint-stock company (IJSC) incorporated in Russia will become Yandex's parent company. The company received 99.999% of shares in Yandex LLC in January.

The principal owner of the IJSC will be Consortium.First, a closed-end mutual investment fund led by senior executives from the group's Russian business. The other members of the consortium are entities owned by oil company Lukoil , former Gazprom deputy chairman Alexander Ryazanov, Leta Capital founder Alexander Chachayev and Infinitum CEO Pavel Prass.

Yandex N.V. plans to use a portion of the net cash consideration to finance the development of the retained international businesses, and ultimately to return a substantial proportion of the proceeds to its remaining shareholders, which it expects will be through a share repurchase offer.

We remind, LUKOIL Group 2022 Sustainability Report debuted in the international Global Corporate Sustainability Awards and received a bronze class award in the Sustainability Reporting category, said the company. The category recognizes organizations for disclosure of information in transparent and credible manner. In 2023, 80 companies representing 8 countries submitted 90 applications to the contest. LUKOIL became its only Russian participant and winner. Among other Sustainability Reporting Awards winners are such companies as Delta Electronics, Inc., Hewlett Packard Enterprise, China Airlines Ltd., Logitech International S.A. etc.

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January sales of new passenger cars in Russia grow 77.3% YoY to 80,212 units

MRC -- Sales of new passenger cars in Russia in January 2024 increased 77.3% YoY versus last year's "low base" to 80,212 units, the analytical agency Autostat said, citing data from Passport Industrial Consulting JSC, as per Interfax.

The market leader is still the Russian Lada, whose sales last month increased 26.4% to 22,289 units, and its share decreased by 11.2 percentage points, to 27.8%.

Second place and first among foreign cars belongs to Chinese brand Haval, with 9,620 cars sold in January. Next are seven more brands from China: Geely (8,998 units), Chery (8,801 units), Changan (4,893 units), Exeed (2,758 units), Omoda (2,668 units), Lixiang (1,741 units) and Tank (1,733 units). All these brands showed annuals.

We remind, imports of polymer feedstock to Russia may grow in 2024, Petr Bazunov, General Director of the Russian Plastics Processors Association (RPPA). A number of processors in our Association have decided to increase imports, as imported raw materials in Russia are sold at prices equal or close to those of SIBUR. The principle of import parity or so-called netbacks is in effect. Refiners choose the raw materials that are more profitable for them.

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New EU sanctions package may include travel limitations for Russian diplomats

MRC -- The 13th package of EU sanctions against Russia may limit the travel of Russian diplomats in EU member states, as per Interfax.

"Another idea being floated is to limit the travel of Russian diplomats to the country where they are accredited, instead of to the whole Schengen area. The proposal is a longstanding request from the Czech Republic," Politico said, citing an unnamed European diplomat as its source.

According to a Radio Poland correspondent in Brussels, the 13th package could sanction almost 250 people and companies. "Currently, the list consists of almost 2,000 people, companies, and entities. Besides adding another 250 people and companies, the new sanctions package is also due to ban trade with companies circumventing the arms embargo on Russia," it said.

"The 13th package will impose individual sanctions rather than sectoral ones. This is about blacklisting people and companies, banning them from travel to the European Union, and blocking their assets," Radio Poland said on Monday.

"Together with the three Baltic states, Poland has called for more ambitious sanctions. The Four's proposals include a ban on LNG and aluminum imports, but these restrictions will not be included in the 13th package," it said.

We remind, imports of polymer feedstock to Russia may grow in 2024, Petr Bazunov, General Director of the Russian Plastics Processors Association (RPPA). A number of processors in our Association have decided to increase imports, as imported raw materials in Russia are sold at prices equal or close to those of SIBUR. The principle of import parity or so-called netbacks is in effect. Refiners choose the raw materials that are more profitable for them.

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Turkish contractor Ronesans announces exit from Russia after 30 years

Turkish contractor Ronesans announces exit from Russia after 30 years

MRC -- Turkish construction contractor Ronesans Holding has announced that it has wound down its operations in Russia after 30 years of doing business in the country, where it was one of the top ten contractors in the oil and gas sector, said Interfax.

The group started its business in St. Petersburg in 1993 and subsequently significantly expanded its presence in Russia.

"In Russia, Ronesans divested its construction business in May 2022 and its real estate business in June 2023, redirecting investment and attention to diverse locations worldwide. This transition and the strategic decision to pivot away from direct management in that market has transformed Ronesans' growth strategy. The group's global footprint now extends to various regions, anchored in Turkey and spanning the Netherlands, Germany and CIS countries, with a growing focus on Kazakhstan and Turkmenistan," the group said in a press release.

The Russian legal entities of JSC Ronesans Construction in Moscow and St. Petersburg have been renamed JSC Rencons and Ronesans Heavy Industries has been renamed Rencons Heavy Industries. Ronesans said it expects to end 2023 with revenue up 10% to 3.3 billion euros and is targeting turnover of 4.5 billion euros in 2024.

Ronesans also plans to take "its first step towards opening to the public" this year with the announcement of an IPO for Ronesans Real Estate Investment. "This IPO will be the first of potentially many others, as momentum grows for Ronesans Group," the press release said.

The group's Russian portfolio included industrial facilities and major mixed-use real estate projects such as Gazprom's Lakhta Center in St. Petersburg and the Federation, Neva Towers and iCity skyscrapers in Moscow.

We remind, imports of polymer feedstock to Russia may grow in 2024, Petr Bazunov, General Director of the Russian Plastics Processors Association (RPPA). A number of processors in our Association have decided to increase imports, as imported raw materials in Russia are sold at prices equal or close to those of SIBUR. The principle of import parity or so-called netbacks is in effect. Refiners choose the raw materials that are more profitable for them.

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Tecnimont awarded a FEED contract for an integrated green hydrogen and ammonia plant in Portugal

Tecnimont awarded a FEED contract for an integrated green hydrogen and ammonia plant in Portugal

MRC -- Tecnimont has been awarded a FEED contract by MadoquaPower2X to develop an integrated green hydrogen and green ammonia plant located in the industrial zone of Sines, Portugal. MadoquaPower2x is a consortium comprised of Madoqua Renewables, Power2X and Copenhagen Infrastructure Partners (CIP), through its Energy Transition Fund, as per Hydrocarbonprocessing.

The project involves the production of green hydrogen using alkaline-water electrolyzer technology and production of green ammonia through the Haber-Bosch process. Green ammonia will be transported by pipeline to the Port of Sines and loaded for export and/or used as maritime fuel.

Tecnimont’s scope of work entails the design of the electrolyzers’ integration, air separation unit for nitrogen production, ammonia production plant, as well as storage and ship loading facilities. As part of the agreement, Tecnimont will also submit an Engineering, Procurement and Construction proposal for the construction activities of the plant. The Final Notice to Proceed is expected by 22 March 2024.

This award follows a PRE-FEED carried out by NextChem Tech, MAIRE’s Sustainable Technology Solutions subsidiary and is further proof of the synergies and cross-fertilization at the base of MAIRE’s positioning as a leading Integrated Technology and E&C solutions provider. As such, Tecnimont will provide its EPC expertise leveraging on NextChem Tech’s technological competences for hydrogen production and storage.

MadoquaPower2X will use renewable energy generated by solar and wind assets under development in Portugal and up to 500 MWs of electrolysis capacity to produce up to 1,200 MTPD of green ammonia. It will be the first facility in Sines, the largest industrial and logistic hub in the Iberian Peninsula, to produce clean energy at an industrial scale and with the highest environmental and safety standards. The project is geared towards the set-up of an export energy carrier value chain between the Port of Sines (Portugal) and Northwestern European Hub.

We remind, MAIRE announces that Tecnimont has been awarded a FEED contract by Fortescue, a global green technology, energy and metals company, for a green ammonia plant to be located in the Nordgulen fjord in Norway.

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