|Bid||430.10 x 610000|
|Ask||0.00 x 268000|
|Day's Range||418.10 - 420.65|
|52 Week Range||390.35 - 522.80|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||11.34|
|Earnings Date||Aug 5, 2019 - Aug 9, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.72|
Russia's national flag carrier Aeroflot is planning to add nine medium-haul A320 Neo Airbus planes for about $870 million to its fleet next year, procurement documents show. The plan includes leasing six Airbus A320-251N for 12 years - the bidding process for which was launched on Monday - and three A321-251NX jets. Aeroflot has 367 aircraft in its fleet, including 248 medium-haul A320 and Boeing 737 jets.
(Bloomberg Opinion) -- Italian Interior Minister Matteo Salvini, leader of the nationalist-populist League party, is having a hard time waving off accusations that one of his close aides plotted to get Kremlin funding for the political force. It should be clear by now that such aid is readily available to European populist parties. If voters don’t see it as a deterrent – and so far they don’t – then it’s only going to become more brazen. The first report of a Moscow meeting between Gianluca Savoini, Salvini’s former spokesman, and some Russians with high-level government contacts appeared in the Italian magazine L’Espresso in February. At the meeting, an oil deal was supposedly discussed: The Russian state-owned oil company Rosneft would sell some Russian diesel fuel to an Italian intermediary at a discount; the intermediary would then sell it on to Italy’s Eni SpA and use the profit to fund the League.Last week, Buzzfeed published what it said was the transcript of a secret recording of that meeting. It contains some titillating details about how the proposed deal would be structured to hide the Russian involvement, the amount of fuel to be sold (250,000 tons a month for a year), the size of the discount (4%) – and a Russian demand for a kickback. Buzzfeed calculated the Italians stood to receive about $65 million so the League could “sustain a campaign.”As in February, there’s still no evidence that the deal actually took place, that the League received any Russian money or that Salvini even knew about the negotiations. An Italian lawyer, Gianluca Meranda, has since come forward claiming that he’d been present at the meeting and that the transaction hadn’t been completed. And Salvini has said that he’s “never taken a ruble, a euro, a dollar or a liter of vodka in financing from Russia.”As Samuel Greene, director of the Russia Institute at King’s College London, pointed out in a recent Twitter thread, it’s natural for Putin to offer enticements to potential allies, and he doesn’t much care about European laws (or Russian ones, for that matter). “What should be much more surprising and troubling,” Greene wrote, “is the increasing number of players in our own political establishments who are willing to sell out -- politicians and voters who no longer think our own rules matter. That's the threat.”As I’ve written before, European populists are perfectly aware of the toxicity of accepting Russian money in any form. In some countries, Italy among them, political slush funds are not unheard of – but Russian interference in the 2016 U.S. presidential election has drawn so much attention, including from intelligence services, that accepting the Kremlin’s financial aid increases the probability of getting caught. That explains Salvini’s obvious caution – and that of Brexit campaign funder Arron Banks, who apparently turned down offers of lucrative Russian deals. And yet the aftermath of the sting operation that brought down the Austrian government just before the European Parliament election in May suggests voters may increasingly be willing to shrug off such Russian involvement. Austrian Vice Chancellor Heinz-Christian Strache, then leader of the Freedom Party, the junior partner in the ruling coalition, was recorded holding talks with a woman he thought was a Russian billionaire’s niece. He discussed a plan to buy Austria’s biggest tabloid newspaper to ensure favorable coverage for his party and told her she could make an illegal donation to the party through a special foundation. Then-Chancellor Sebastian Kurz forced Strache to resign and dissolved the coalition. But the Freedom Party’s support didn’t collapse. In the European Parliament election, it won 17.2% of the vote, less than the 20.5% it garnered in the 2017 national election but still a surprisingly high percentage under the circumstances.Strache himself received the second highest number of votes among Freedom Party candidates and won one of the party’s three European Parliament seats. He refused to take it, saying he didn’t want to move to Brussels. Indeed, he only paid a political price because his coalition partner, Kurz, used the scandal to shake off an uncomfortable alliance with the far right. The Freedom Party is polling close to 19% in the run-up to the national election in October.The League’s polling numbers are on the rise despite the Russia scandal. It’s conceivable that populist voters simply don’t care about the Kremlin scare, either because they’re generally sympathetic toward Russian President Vladimir Putin (who cleverly echoes hard right rhetoric as he seeks allies in Europe) or because they write off media reports of Russia scandals as fake news. The more Russia scandals hatch and pass without consequences, the more the latter perception will be reinforced: one can’t cry wolf too many times. Voters also know these parties have a harder time gaining funding and may simply be willing to ignore such freelancing if it helps their larger anti-establishment cause. It has long been clear that legal forms of aid, such as French nationalist Marine Le Pen’s Russian bank loans, are fine with such politicians’ supporters. The Brexit Party’s voters have also brushed off concerns about Russian interference in the 2016 referendum. Ultimately, if voters keep showing they don’t mind politicians’ Kremlin links, all the politicians need to do is set up legal structures to receive Putin’s aid with a minimum of risk. That may not be straightforward, but it’s more a technical task rather than a political one.So far, the European establishment has failed to impress on a significant number of voters the idea that Putin is a threat. That’s part of its general vulnerability. Whether or not the Kremlin may becomes an agenda-setting player in European politics, the record so far suggests it will continue to look for open doors and increasingly find them. To contact the author of this story: Leonid Bershidsky at email@example.comTo contact the editor responsible for this story: Therese Raphael at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Leonid Bershidsky is Bloomberg Opinion's Europe columnist. He was the founding editor of the Russian business daily Vedomosti and founded the opinion website Slon.ru.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Russian oil production fell close to a three-year low in early July, as output was undermined by a row between Russian oil pipeline monopoly Transneft and the country's biggest producer Rosneft. Transneft curbed oil intake from Yuganskneftegaz, Rosneft's main upstream unit, the oil producer said, hurting production that has already been depressed by an oil contamination crisis.
Russian state-owned pipeline monopoly Transneft criticised oil producer Rosneft on Monday, alleging it had dragged its feet over quality controls and making unsubstantiated damages claims. Transneft said that Rosneft had been unwilling to help resolve a contaminated oil crisis in the Russian Druzhba export pipeline which began in late April, and that the oil producer was seeking compensation from it without any grounds. Rosneft said that it had read Transneft's statement with "regret" and "bewilderment".
(Bloomberg Opinion) -- They got there in the end. After a fraught period when nobody could agree on when to meet, OPEC and its friends will gather on July 1-2 in Vienna. All 24 oil ministers will have to decide whether to renew their commitment to output cuts, which have have already run five times longer than originally intended. OPEC’s three biggest members – Saudi Arabia, Iraq and the United Arab Emirates – are all willing to continue the policy of reduced production. But the big question is what Russia will do.Though it has a lot of reason to back away from the deal, it will continue to pay lip service to the agreement. President Vladimir Putin’s wider ambitions to rebuild the country’s geopolitical role in the Middle East will outweigh objections from the boss of the country’s biggest oil company and any evidence that the cuts are undermining economic growth. For Russia, the participation in OPEC+ output restraint is less about the needs of its oil industry and more about its President's relationship with his new ally in the region, Saudi Crown Prince Mohammed bin Salman. Putin has a lot at stake, with wider trade and investment deals still being negotiated. Continuing to support Saudi efforts to underpin oil prices can only help those discussions.It’s not as if Russia has been stretching itself to meet lower production goals. True, its output was below its target in May. But that was only the first time that has happened since oil producers established their policy of restraint in 2016. The broader picture is that Russia’s reductions have been minimal.While Saudi Arabia implemented its agreed production cut immediately and in full in January 2017, Russia dawdled, blaming cold winter weather that it said prevented it from shutting wells. The same pattern has emerged after the targets were reset for the latest round of cuts, which came into effect at the start of 2019. Russian production tailed off only because of the discovery of contaminated crude in its main export pipeline to Europe. Now that the tainted oil crisis looks to have passed, output should rise again in the coming weeks.If compliance has almost always been minimal at best, why not ditch the policy? The country’s biggest oil company wouldn’t mind. The loudest critic of Russia’s alignment with OPEC has been Igor Sechin, the boss of state-controlled oil giant Rosneft PJSC. He warned earlier this month that extending the deal would cause Russia to cede global market share to the U.S.His complaints are a bit rich – in percentage terms, Rosneft cut output much less than either of its nearest rivals, Lukoil PJSC and Surgutneftegas PJSC, during 2017 and 2018, and was quick to boost it again as oil prices climbed in the second half of last year. Still, he has a point.While Saudi Arabia and Russia are both producing less oil now than they were when the OPEC+ group was formed in late 2016, U.S. output has soared, rising by more than a third as producers tapping the country’s vast shale formations have bounced back from the price collapse of 2014-15.Abandoning the deal would allow Russian output to grow – Rosneft and other companies have a string of new projects to bring into production. The cost of saying farewell to OPEC+ policy would inevitably be lower prices for every barrel they pump. The output cut was one of the factors that undermined Russia’s economic growth in the first quarter, according to Kirill Tremasov, a former economy ministry official who’s now an analyst at Loko-Invest in Moscow. That might give Putin pause for thought when it comes to instructing his oil minister for the Vienna OPEC+ meeting.But it is unlikely to change his mind. And he has a handy justification for insisting on reduced production – oil demand growth is starting to look more fragile. Russia can also demand flexibility to raise production if market conditions allow. That would be noteworthy, given that Saudi Arabia is producing 620,000 barrels a day less than it is permitted under the deal and might expect first dibs at any production increase.The latest forecast from the International Energy Agency shows global oil inventories falling at a rate of 900,000 barrels a day in the third quarter. This assumes the output restraint is maintained and that demand growth doesn’t evaporate, as it did in earlier periods. That may provide some leeway to allow output to rise, but it won’t last long.By the time the OPEC+ group meets, the G20 summit in Japan will have concluded and some of the U.S. trade relationships may have become a little clearer. But there will still be plenty of uncertainties for ministers to grapple with, not least the rising tensions in the Middle East.So even if ministers can reach a deal for the rest of this year, don’t expect them to even start to tackle what they might do in 2020. As I have argued, if demand growth turns out to be much weaker than expected producers will have make even deeper cuts. That may finally prompt Putin to decide that he’s better off without the goodwill of the Saudi crown prince. To contact the author of this story: Julian Lee at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Igor Sechin, CEO of Russian oil giant Rosneft, accused the United States of using energy as a political weapon and said on Thursday that the U.S. golden age of energy had become an "era of energy colonialism" for other countries. Speaking at an economic forum in St Petersburg, Sechin said a third of global oil reserves were restricted by U.S. sanctions on Iran and Venezuela and that Washington was losing moral ground as a self-styled leader of open markets.
Russia’s largest oil producer Rosneft is in talks with the government for possible compensation for losses in case OPEC and its Russia-led non-OPEC partners decide to extend the production cut deal through the end of the year
Russian oil giant Rosneft's CEO Igor Sechin said on Tuesday the company was discussing possible compensation from the government in the event that a global deal to cut supply is extended, Russian state news agencies TASS and RIA reported. The Organization of the Petroleum Exporting Countries, Russia and oil exporting allies have reduced output by 1.2 million barrels per day since Jan. 1 as part of the deal. Sechin, one of President Vladimir Putin's closest allies, questioned the logic of Russia cutting output further as part of an extended deal, saying the United States could raise production and take Russia's market share.
Russian airline Aeroflot has scaled back the number of Sukhoi Superjet 100 flights it operates after one of its planes made a crash-landing last month, killing 41 people, according to data provided by a flight tracking website. Flightradar24 data shows Aeroflot has also at times substituted Airbus or Boeing planes for the Superjet, the first new passenger jet developed in Russia since the Soviet Union collapsed. Fallout from the crash risks undermining the aircraft's reputation at a time when Russia is promoting another domestically made passenger plane, the M-21, as a rival to Boeing and Airbus.
Russian oil producer Rosneft said on Monday its net income and oil production rose in the first quarter as it ramped up output at both mature and new fields and capitalised on favourable foreign currency rates. The Kremlin-controlled firm, headed by Igor Sechin, a close ally of President Vladimir Putin, also said Venezuela had continued cutting its debt to the company and that its dealings with the Latin American country had not breached U.S. sanctions. Rosneft's shares were up 1.9% to 421.9 roubles apiece after the results, outperforming the wider Russian stock market.
Russian Urals crude loadings from the Baltic Sea port of Ust-Luga have resumed, port official and trade sources told Reuters on Friday. Two 100,000-tonne vessels, Front Sirius and Tanacity Venture, have ...
CARACAS/PUNTO FIJO, Venezuela April 9 (Reuters) - V enezuela's opposition-controlled National Assembly on Tuesday allowed a parallel board of directors of state-run oil company PDVSA to negotiate foreign debt ahead of a looming payment deadline that could put its crown jewel overseas asset, U.S. refiner Citgo, at risk. The ad hoc board, which the Assembly on Tuesday expanded to nine members from five, is part an effort by opposition leaders who have disavowed the government of President Nicolas Maduro to control PDVSA's overseas assets. Maduro's ruling Socialist Party continues to control the company's day-to-day operations.
Ford Motor Co's Russian joint venture Ford Sollers will close two assembly plants and an engine factory in Russia, exiting the country's passenger vehicle market, resulting in charges of about $450 million to $500 million. The move is part of a restructuring that will see Russia's Sollers assume control of the venture, which is currently led by the U.S. automaker, the companies said in a statement on Wednesday. Industry sources told Reuters this month that Ford was considering closing Russian plants as it was reviewing operations in unprofitable regions.