20 May 2009 | Russia Economic Scan

20-May-2009

Russia Economic Scan

In this edition: S&P says Russian economy to contract 5% and unemployment to hit 12%, Nabiullina says Russian economy may shrink up to 8%, Russia Gazprombank to raise up to $3bln, Russia's MTS sold 15 billion ruble bond, Russian stocks rose 3% on Tuesday.

Top headlines

Standard & Poor’s: Russian economy to contract 5 percent in 2009, unemployment to surpass 12 percent

• Standard & Poor's Ratings Services has predicted Russian GDP will contract 5% and unemployment will exceed 12% in 2009, Frank Gill, the agency's leading analyst for sovereign credit ratings in Russia, Kazakhstan and Ukraine, said.
• Gill said these expectations are extremely uncertain since a great deal will depend on external demand and the terms of foreign trade. He said improvements have been seen in oil prices recently, which provides support to the prospects of the Russian economy. (Kyiv Post)

Nabiullina Says Russian Economy May Shrink up to 8%

• Russian Economy Minister Elvira Nabiullina said the economy may shrink as much as 8% this year, a steeper decline than the ministry forecast in January.
• “The specific contraction numbers could be 4 percent or 6 percent or 8 percent,” Nabiullina said. “We’re doing various calculations, pessimistic and optimistic. We believe much depends on how efficient we are.” (Bloomberg)

Russia Gazprombank to raise up to $3 bln in loans

• Gazprombank, the banking arm of Russian state energy company Gazprom, said on Tuesday it plans to secure up to 100 billion roubles ($3.10 billion) in subordinated loans from shareholders and state bank VEB.
• Gazprombank has reported a net loss of 60.1 billion roubles for 2008, becoming the first major Russian bank to report a loss last year. (Reuters)

Russia's MTS sells 15 billion rouble bond

• MTS, Russia's top mobile phone operator, said on Tuesday it had placed in full a 5-year bond worth 15 billion roubles ($464.5 million).
• The bond, placed with an annual coupon rate of 16.75%, has a two-year put option. (Reuters)

OAO Dixy Group, Norilsk Nickel: Russian Stock-Market Preview

• The 30-stock Micex Index rose +2.9% to 1,041.84. The 50-stock RTS Index added +3.1% to 968.88.
• OAO Dixy Group: Russia’s third-largest listed food retailer is scheduled to publish 2008 financial results today. Dixy rose +3.8% to 123 rubles. OAO GMK Norilsk Nickel: Copper futures rose to a 1-week high as falling inventories and a weakening dollar boosted speculation that demand will increase. Norilsk advanced +6.6% to 3,349.98 rubles. (Bloomberg)

Source: Russia Economic Scan