The budget for 2015 of Russia’s second-largest oil company Lukoil includes possible scenarios in which the price of oil will be $70 or $80 per barrel, TASS said. Under the latter scenario, the company expects to get free cash flow of $1 billion, according to CEO Vagit Alekperov. Lukoil’s oil extraction in 2015 is expected to amount to 85 million tons in Russia, and including Western assets - to 102 million tons. The investment program will be cut by $2 billion to $14 billion, Reuters reported.
Russia’s ruble opened stronger against both the dollar and the euro on Friday. At 07:04 GMT, the ruble was around 0.4 percent stronger against the dollar at 45.97. It also gained 0.4 percent to 57.66 versus the euro. The Russian currency built on gains made in the previous session thanks to end-of-month taxes and a recovery in oil prices, Reuters said.
VTB Capital has ended talks to buy a majority stake in the Italian fashion house Roberto Cavalli, the Wall Street Journal reported, citing sources. The investment arm of Russian lender VTB Bank was expected to buy a 70 percent stake in the Florentine company. The stake was valued at $502 million as of October 8. The 73-year-old designer's valuation was seen as too high, according to one of the paper’s sources.
Quarterly GDP in the area of the Organization for Economic Co-operation and Development rose by 0.5 percent in the third quarter of 2014. The figures were up from 0.4 percent and 0.3 percent, respectively, in the second and first quarters of 2014, according to OECD’s provisional estimates. Among the major seven economies, GDP growth remained the highest in the US and the UK. However, it slowed to 0.9 percent and 0.7 percent respectively (compared with 1.1 percent and 0.9 percent in the previous quarter). In France and Germany, GDP increased by 0.3 percent and 0.1 percent respectively. There was a contraction of 0.1 percent in both countries in the previous quarter.
Exxon Mobil Corp. will look for alternative assignments for an offshore rig supposed to sail back to the Russian Arctic next summer, Bloomberg said. The West Alpha rig, owned by North Atlantic Drilling made a billion-barrel oil discovery for Exxon and OAO Rosneft in the Kara Sea in September. The ring could end up operating offshore Norway instead of going back to Russia in 2015, according Dominic Genetti, operations manager for Exxon in Norway, who said the company will see “what happens with the joint venture and sanctions.”
The CEO of Russia’s second-largest bank, VTB, Andrey Kostin, topped an annual Forbes 25 rating of highest-paid heads of Russian companies with an estimated salary and compensation package of $37 million. Gazprom’s Aleksey Miller was second with compensation of $25 million. The estimated package for Mikhail Kuzovlev, of Bank of Moscow, is $17 million. The top 25 in the Forbes rating earned a total of $291 million, according to the magazine. The previous year their combined compensation was 7 percent less.
Head of Visa’s local division, Andrew Torre, named a number of conditions needed for the international payment system to continue its work in Russia, RBC said. In a letter to the Russian Central Bank he reportedly asked it not to interfere into tariffs policies during a transfer of payment traffic to the national system of payment cards, which Visa is obliged to do by March 31 next year. Otherwise, it should pay a security deposit. Torre said earlier this month that Russia remains one of the key markets for Visa despite the legislative changes.