Turkey expects to receive additional gas volumes via the Blue Stream pipeline with a discount, TASS quoted Turkish Energy Minister Taner Yildiz as saying on Wednesday. “We have sent our proposals to Gazprom concerning the discount for gas,” he said. Gazprom may launch additional gas supplies to Turkey via the Blue Stream in early 2016, according to Yildiz. Russia and Turkey are working out economic and technical conditions for increasing gas supplies via the Blue Stream by 3 billion cubic meters.
Russian oil companies will keep production steady in 2015, roughly at the level of this year, Energy Minister Aleksandr Novak said on Wednesday. Earlier reports said Russia could cut its oil production or exports as oil prices are falling. Russia’s planned output in 2014 is 525.3 million tons of oil.
Sberbank’s third-quarter profit fell 25 percent as Russia’s largest lender was hit by higher provisions over Ukraine, Bloomberg said. Net income fell to 71.3 billion rubles ($1.5 billion) from 94.6 billion rubles in the previous year, the Moscow-based bank said in a statement on Wednesday. Net interest income advanced 17 percent from a year ago to 255 billion rubles.
The oil price of $80-90 per barrel may persist in the medium and even long term, TASS quoted Russian Finance Minister Anton Siluanov as saying on Wednesday. Proceeding from this price, the government has to adjust the budget for the next three years, he said. He added that Russia is most likely to avoid making borrowings on external markets in 2015 amid unfavorable market conditions.
Russia’s Gazprom Neft agreed on Tuesday to develop Russia’s Dolginskoye offshore Arctic oil field jointly with Vietnamese state energy company Petrovietnam, Reuters said. The oil arm of the world’s top gas producer, Gazprom, also signed a deal under which Gazprom Neft will supply ESPO-blend crude oil to Vietnam.
Rating agency Standard & Poor’s is unlikely to change Russia’s rating even if the country falls into recession, Reuters quoted the agency’s senior director for sovereign ratings, Christian Esters, as saying on Tuesday. “External and fiscal buffers are strong enough to support the rating even if the economy goes into recession,” he said in Moscow. The agency expects Russia to enter a technical recession in the fourth quarter, according to S&P economist Tatyana Lysenko. The country’s GDP growth will be 0.3 percent in 2014 and 0.6 percent in 2015, TASS said, citing the agency’s data.
The global economy will gradually improve over the next two years, the Organization for Economic Co-operation and Development said on Tuesday. The US and the UK will grow more strongly than the eurozone and Japan, while among emerging countries, India, Indonesia and South Africa are set to recover steadily. Russia’s economy is set to stagnate next year and China’s will soften, the OECD said in its bi-annual economic outlook. It added, confirming earlier forecasts, that overall, the global economy is set to grow by 3.3 percent this year, 3.7 percent in 2015 and 3.9 percent in 2016.