Heads of Slovakia's SPP, Gazprom discuss gas supplies to Slovakia

Gazprom CEO Alexei Miller has discussed Russian gas supplies to Slovakia with SPP CEO Vojtech Ferenc, Gazprom said, as per Interfax.

SPP is Slovakia's largest natural gas supplier, engaged in gas and electricity trading, transportation and storage. Slovakia owns 100% of the company's shares.

As reported, the European Commission has proposed ending Russian gas supplies to member countries by 2028. SPP said it disagreed with this plan. "The political decision lacks a sufficient legal and financial analysis of the consequences and impact assessments of proposed measures to terminate Russian natural gas imports, which could have a significantly negative impact on the competitiveness of the EU's business sector," SPP said.

The plan could also distort the free energy market and seriously threaten the security of the energy supply for some regions of the continent, including Central and Eastern Europe, SPP said.

Terminating long-term contracts might be viewed by Gazprom as unilateral breach of contractual obligations, SPP said. "Under the 'take-or-pay' principle, if SPP or Slovakia stops importing Russian fuel from January 1, 2028, Gazprom could demand payment for the entire unrealized gas volume, which at current prices amounts to around 16 billion euros," the company said on Tuesday.

Securing alternative gas supplies would occur under "significantly less favorable economic conditions," it said.

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Sika AG has launched three new manufacturing investments at Suzhou, China; Minas Gerais, Brazil; and near Agadir in Morocco. Financial details have not been disclosed, as per Chemweek.

The company has upgraded its facility at Suzhou that specializes in high-viscosity polyurethane technologies used for advanced bonding and sealing solutions across the automotive, construction, and industrial sectors, Sika said.

The investment in Brazil has extended its Minas Gerais site, the country’s largest concrete-producing state and a hub for the mining sector, to include admixture production, Sika said. The facility will support key customers in ready-mix concrete, cement, and mining industries, it said.

Meanwhile, Sika has opened a new mortar and admixtures plant near Agadir, Morocco, to serve the country’s southern region and neighboring markets, the company said.

Sika is actively executing its growth strategy with these investments, as the company is strengthening its global presence and laying the groundwork for future expansion, the company said.

These site developments are part of a broader effort to increase market penetration and ensure that production capabilities are aligned with customer needs at a regional level, Sika added.

”By expanding our local manufacturing capabilities, we are not only improving responsiveness—we are building a resilient, sustainable foundation for growth alongside our longtime customers and partners,” said Thomas Hasler, CEO of Sika.

The construction market in these three countries is forecast to grow by over 4.0% per year through to 2028, according to Sika.

In China, investment in infrastructure, green energy, and high-tech manufacturing will transform the existing construction industry, Sika noted.

Brazil’s construction sector is gaining “renewed momentum,” with demand rising for residential, commercial, and industrial projects, reflecting increased confidence and economic recovery, Sika said.

In Morocco, strategic public investment and major infrastructure programs are positioning the country as a regional hub for development, Sika added.

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Gas supplies from Russia to Hungary in 2025 will total between 8 billion cubic meters and 8.5 bcm, meaning the TurkStream pipeline will be utilized at maximum capacity, Hungarian Foreign Minister Peter Szijjarto told reporters, as Interfax.

Approximately 2 bcm of gas (annualized) are being supplied from Hungary to Slovakia, he said.

The capacity of the oil pipeline from Croatia is insufficient to meet Hungary's oil needs, so the country intends to maintain supplies via the Druzhba pipeline, he said.

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Nouryon Ltd. (Amsterdam and Radnor, Pennsylvania) has opened its first innovation center for oilfield applications at Houston that is expected to be fully operational in July, according to a statement by the company June 18, as per Chemweek.

The center will focus on research and development for sustainable drilling and completion, production, and stimulation processes, and will also serve as a platform for workshops and training sessions, the company said.

The innovation center is marking a “significant” expansion of the company’s capabilities and presence in the oilfield market, Nouryon said.

The company also operates innovation centers for oilfield applications at Dubai, United Arab Emirates, and Stenungsund, Sweden, it said.

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Russia's GDP grew 1.4% in Q1 2025 compared to a year earlier, according to the first official estimate published by Rosstat on Wednesday, which matched preliminary calculations, as per Interfax.

In current prices, Q1 2025 GDP amounted to 47.7468 trillion rubles, with the GDP deflator reaching 106.7% compared to Q1 2024.

As reported, Russia's GDP grew 4.5% YoY in Q4 2024, 3.3% in Q3 2024, 4.3% in Q2 2024 and 5.4% in Q1 2024. For the full year 2024, Russia's economy expanded 4.3% after growing 4.1% in 2023.

GDP growth in Q1 2025 was primarily driven by an increase in the physical volume of gross value added across the following sectors: construction - 7.3% (with the expansion of construction activity being supported by the implementation of major investment projects); manufacturing - 4.5% (production of other transport equipment - 35.8%, fabricated metal products - 18.2%, computers, electronic and optical products - 12.7%, repair and installation of machinery and equipment - 10.2%); hotels and restaurants - 6.8% (reflecting increased demand in the food service market, which grew 7.1%).

Additional positive contributions came from financial services (17.5% growth), cultural and sports activities (9.5%), telecommunications (2.8%) and agriculture (1.1%).

However, several sectors experienced declines in their physical volume index of value added during Q1 2025, including the mining sector - 4.0%; the supply of electricity, gas, steam and air conditioning - 3.8%, and real estate operations - 1.6%.

As reported, the Economic Development Ministry's baseline scenario forecasts Russia's GDP growth at 2.5% for 2025. The ministry maintained this projection from its September version in April.

The Central Bank of Russia's 2025 forecast is more conservative, at 1%-2%. Current GDP trends are developing closer to the lower bound of the CBR's projection, Central Bank Governor Elvira Nabiullina said during a briefing on June 6.

Analysts surveyed by Interfax in early June predict GDP growth of 1.5% for 2025.

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