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BUSINESS WORLD MAGAZINE, 11 November 2016

UKRAINE: SILK ROAD TOP PRIORITY FOR DOMESTIC AGRICULTURAL PRODUCERS

Using Silk Road infrastructure will allow Ukrainian agricultural producers to enter the Chinese market.

Advisor to Ukrainian Agrarian Policy and Food Minister Vladyslava Rutytska said this at the 2016 Ukraine Silk Road Forum in Kyiv.

"Our companies obtained the right to export dairy products. These products have a very limited shelf life. So, the possibility of using the Silk Road infrastructure is a top priority for us", Rutytska said.

According to her, delivery of goods by ship to China will take about 28-30 days, which makes supplies of dairy products, fruit, vegetables and other products with a limited shelf life impossible.

"The Silk Road infrastructure gives us the opportunity to do this in about 8-9 days or 10-11 days if there are problems with the delivery. Launch of the Silk Road is a top priority for all the agricultural producers", the advisor to the minister said. (Ukrinform/Business World Magazine)

UKRAINE AND SLOVENIA SIGN DOCUMENTS ON COOPERATION

A number of documents were signed in Ljubljana on November 8, in the presence of presidents of Ukraine and Slovenia, Petro Poroshenko and Borut Pahor, press secretary of the Ukrainian president Sviatoslav Tseholko has said.

"Ukraine and Slovenia have signed a memorandum of understanding in energy efficiency and alternative fuels", Tseholko wrote on Twitter.

In addition, the parties signed a memorandum of cooperation in the field of consumers' rights protection and an agreement on cooperation between the two countries' archive facilities. (Interfax/Business World Magazine)

UKRAINE: PRICES KEEP RISING ON MILLING WHEAT MARKET

Last week milling wheat prices strengthened both on export and domestic markets supported by strong demand.

Export prices of Ukrainian milling wheat with 12.5% and 11.5% protein were still equal. They increased by another $3. (UkrAgroConsult/Business World Magazine)

UKRAINE: PROFITABILITY OF SOYBEAN PRODUCTION RECOVERING

The current 2016/2017 soybean season is completely different from the past one, except for the fact that Ukraine is unlikely to obtain soybean crop higher than 4 MMT again.

Each marketing year has its own characteristic features. The 2016/2017 soybean season can be characterized by the following:

1. Planted area reduction due to low production profitability in the last 2015/2016 season. Profitability is estimated at 30%.

2. Soybean harvesting delay compared to last season, because of record large sunflower area;

3. High soybean humidity and losses caused by rainy weather, especially at the end of harvesting campaign.

Given all these factors, analysts expect soybean production to reach 4 MMT in 2016. A bit earlier the estimate was more optimistic (4.3 MMT). An 18% increase in soybean average yields owing to favorable weather during plants development, will not be able to offset the reduction of planted area and losses. (UkrAgroConsult/Business World Magazine)

UKRAINE: OVER 57 MILLION TONS OF GRAINS HARVESTED

As of November 8, Ukrainian agrarians harvested 57.23 million tons of grains throughout the areas of 13.017 million ha, or 91% of the plan. The average yield totaled 4.4 ton/ha, the Ministry of Agrarian Policy and Food of Ukraine reported. At the same time, on the same date last year the production volumes reached 57.7 million tons.

In particular, agrarians continued harvesting corn. As of the reporting date, Ukraine harvested 18.186 million tons of the grain throughout 2.997 million ha (71%). The average yield reached 6.07 ton/ha.

Also, Ukraine harvested 190 thousand tons of buckwheat throughout 149 thousand ha (100%). The average yield totaled 1.27 ton/ha. Agrarians harvested millet throughout 103 thousand ha (98%). The production volumes totaled 188 thousand tons, with the yield of 1.83 ton/ha.

Agricultural enterprises of Ukraine harvested 12.752 million tons of sunflower seed throughout 5.716 million ha (97%), with the average yield of 2.23 ton/ha.

Ukraine continued harvesting soybeans. Agrarians harvested 3.83 million tons of the oilseed throughout the areas of 1.696 million ha (92%), with the average yield of 2.26 ton/ha.

Ukraine continued realizing the planting campaign of winter grains. As of November 8, agrarians planted winter grains throughout 6.844 million ha (93% of the plan), up 328 thousand ha compared with the same date last year.

In particular, Ukraine planted winter wheat and triticale throughout 5.836 million ha (94%), winter rye - 157 thousand ha (106%), and winter barley - 851 thousand ha (83%). Also, Ukraine planted winter rapeseed throughout 819 thousand ha (113%). (APK-Inform/Business World Magazine)

UKRAINE INVITES GUAM PARTNERS AND KAZAKHSTAN TO DISCUSS TRANSPORT CORRIDORS

The prime ministers of the GUAM (Georgia, Ukraine, Azerbaijan and Moldova) Organization for Democracy and Economic Development are due to discuss transport corridors and a free trade zone, GUAM Secretary General Altai Efendiyev reported.

"Ukrainian Prime Minister Volodymyr Groysman has initiated a meeting of GUAM prime ministers in Kyiv to focus on the implementation of a transport corridor and the completion of procedures, which will start up a free trade zone between our states", Efendiyev said.

A business forum will be held on the sidelines of the prime ministers' meeting, he said.

"The Kazakh head of government has also been invited to the meeting of the prime ministers, which means this meeting will be held in the GUAM+ format. We think this is necessary because the logical continuation of this route will make sense", Efendiyev said.

Ukrainian commodities should reach consumers in the East, while cargo traffic from the East, including Central Asia, should reach European markets, he said.

"We are actually setting the task to reanimate transport corridors through a major project incorporating the interests of practically all countries, including China and European nations. If we manage to make this project attractive and competitive through joint efforts, it can become a foundation of stable and safe economic cooperation in the highly unstable and unpredictable region", the GUAM secretary general said.

The project is highly important for the Visegrad Group and the Baltic countries, he said.

"The Baltic Council has shown interest in the possibility of connecting the Baltic, Black and Caspian Seas. This idea has been discussed for a long time and it is very close to coming true", Efendiyev said.

In his words, GUAM has been closely interacting with Washington and Tokyo in the GUAM+ U.S. and GUAM+ Japan formats.

"We are eyeing Poland and the Czech Republic as partners in particular projects, and we are also interested in cooperation with the Visegrad Group", the GUAM secretary general said.

Back on January 15, the Ukrainian Infrastructure Ministry jointly with Ukrzaliznytsia organized the demonstration trip of a container train along the new Silk Road, from Ukraine to China through Georgia, Azerbaijan and Kazakhstan (via the Caspian and Black Seas). It took the train 16 days to reach China early in the morning of January 31. (Interfax/Business World Magazine)

UKRAINE: GOVERNMENT STRIVING FOR NO VAT REFUND PROBLEMS

The last two months demonstrated the Ukrainian government's intent to prevent VAT refund amount reduction after its significant decrease in August. However, government will need from six months to a year to gain the market's confidence.

According to government's representatives, as of October 26, the state VAT debt declined to 16 billion UAH.

Experts hope that the tendency towards debt reduction will become permanent in the government's practice, and in the near future it will lead to a "zero" debt, which will then emerge perhaps for technical reasons only, but not following the need to solve economic problems in the country in "manual mode" at taxpayers' expense.

The Finance Minister Alexander Danyliuk sees the following ways to pay off the debt: by means of budget payments, debt issuance, funds from special confiscation.

Unfortunately, debt security is a palliative solution of the problem, which relieves the burden on enterprises only partially, but does not provide liquidity, while funds from special confiscation are short-term resources with a certain risk in relation to "planned" revenue. Moreover, the Parliament has not adopted the law on special confiscation yet.

Nevertheless, it feels like the government strives to resolve the VAT refund problem. (UkrAgroConsult/Business World Magazine)

KAZAKHSTAN PREFERS OILSEED CROPS

Agrarians of Kazakhstan are gradually getting interested in cultivating oilseed crops due to their profitability.

Currently, oilseed price is 2-3 times higher than price of wheat depending on the quality. Moreover, interest comes not only from the side of Kazakh farmers, but also from the foreign investors. The example is the North-Kazakh region, where farms have been switching to oilseeds in the last several years. Among them - AbiZher ltd, where almost half of the sowing area is seeded with rapeseed. Moreover, Italian company Il Trebbiollo purchased the land use rights for cultivation and further processing of rapeseed.

Also there is an increasing number of farms, which allocate part of their area to growing linseed, one of the key oilseed crop in Kazakhstan.

In 2016/2017 oilseed sowing area equaled 2 million ha in Kazakhstan. Early in November harvesting was carried out at 1.6 million ha, up by 45% YoY (1.1 million). (UkrAgroConsult/Business World Magazine)

AZERBAIJAN: AZERCOSMOS TO RENDER TELECOM SERVICES TO AFRICA AND MIDDLE EAST

The Azercosmos OJSC of the Azerbaijani Ministry of Communications and High Technologies has signed a contract to render telecommunication services to the leading international satellite operators, DCS Telecom and Don Telecom.

According to the contract, the DCS Telecom and Don Telecom will use the resources of the Azerspace-1 satellite for voice services, data transmission, cellular and network services, etc. in Africa and Middle East.

Azercosmos has also signed contracts with the Turkish Radyo Akman, Radyo Derman and Radyo Efsana. According to the contracts, these radio channels are broadcast at the frequency of 11027/H/7500 from November 1. (Trend/Business World Magazine)

BELARUS: FOOD EXPORTS TO TOTAL $2.1 BILLION IN 2016

Belarus' food exports are projected to total $2.1 billion in 2016, Alexei Bogdanov, the head of the main division for foreign economic affairs at the Agriculture and Food Ministry of Belarus, said.

"According to preliminary data, in January-October the export growth dynamics was not bad. In monetary terms, the export amounted to 99.3% compared to last year, which is roughly $1.9 billion. At the end of the year we will beat the 100% target. We expect the export to total $2-2.1 billion", Alexei Bogdanov said. In natural terms Belarus has already increased export (that of meat by 17%, milk by 4%), he said.

Alexei Bogdanov noted that the majority of enterprises "got stuck" on the Russian market.

"They reason that it is easy and simple to deliver products there and thus they do not have to go far. This is a faulted logic. Today we have to think about diversifying our exports and using every opportunity to advance to other markets. Russia has invested a lot in its own production growth. We need to think where to take our products", Alexei Bogdanov said.

This year Belarus has branched out into two more markets.

"So far these have been small amounts, but we are gradually opening up new markets. Entering a new market involves costs: price reductions for market entry, market research, marketing and advance payments. This is not an easy path but we have to take it. If we fail to do this, tomorrow we might be left with the surplus products which we will have nowhere to sell to", Bogdanov said.

Good results have been achieved on the African and Asian markets.

"For example, we began poultry deliveries under the UN program to Kenya and Niger. Since the beginning of the summer we have delivered 8 containers 26-ton each. A free trade agreement between the Eurasian Economic Union and Vietnam came into effect on October 5. With the duties being zeroed, we need to work harder to promote our products to that market. A delegation headed by Deputy Prime Minister Vladimir Semashko has just recently returned from Vietnam where they discussed supplies of our dairy and meat products", he said.

Projects with China are actively progressing.

"We have certified 34 dairy enterprises on the Chinese market. China's veterinary certifying authority has recently finished inspecting our meat-packing plants. We expect that following the inspection our businesses will be able to export beef to China. We are also working actively to promote our poultry meat to the EU markets", he informed. (BelTA/Business World Magazine)

BELARUS: TRADE WITH PAKISTAN ON THE RISE

The trade between Belarus and Pakistan has been recently gaining momentum, the Embassy of Belarus in Pakistan reported.

In January-September the trade between Belarus and Pakistan totaled $38.6 million, with Belarus exporting $30 million worth of products to Pakistan. The deliveries of Belarusian tractors increased by 7.8%, tractor parts by 55.4%. The deliveries of Belarusian tires to Pakistan showed a 4.7% increase, while the exports of ready-made food products (infant milk formula) went up by 13.9%. Over the nine months of 2016 Belarus exported 1,395 tons of newsprint worth $613,900.

Belarus also increased imports from Pakistan, including food products, vegetables and fruit 3.4 times, footwear almost 3 times, cosmetic and manicure sets more than 3 times.

In November 2014 Belarus opened its embassy in Pakistan. The parties promptly established relations in the trade and economic sector.

The first official visit of the President of Belarus to Pakistan took place on May 28-29, 2015. In August 2015 the Prime Minister of Pakistan paid a visit to Belarus. In October Alexander Lukashenko visited Pakistan on his second official visit. (BelTA/Business World Magazine)

BELARUS INTERESTED IN POLISH FRUIT AND VEGETABLE PROCESSING TECHNOLOGIES

Belarus is interested in assimilating Poland's innovative technologies for processing fruit and vegetables. Belarusian Deputy Agriculture and Food Minister Vladimir Grakun made the statement during negotiations with a Polish delegation in Minsk on November 8. The meeting was held to discuss the development of bilateral cooperation.

The official said that Belarusian companies took an interest in Poland's new technologies for processing fruit and vegetables.

"For instance, black currants are grown in Belarus. They are sold fresh. The remaining berries could be frozen, made into jams or other kinds of merchandise", the Deputy Agriculture and Food Minister said. Blueberry farming is a new kind of business in Belarus. The area under blueberries is close to 700 ha.

"We are also interested in new approaches to processing blueberries. We sell them fresh for now", the official told the Polish delegation.

Joint efforts to nurture new kinds of fruit varieties are another cooperation avenue Belarus is interested in.

"Belarus has not been importing planting material to grow fruit cultures for six years. We make it domestically. However, we are interested in planting material to start new gardens and create the genetic potential. Belarusian and Polish scientists could start working together to create new Belarusian-Polish crop varieties", the official said. Apples, pears, sweet cherries, sour cherries and other varieties are under consideration.

The Belarusian Deputy Agriculture and Food Minister said he was confident that the meeting would give an impulse to the development of Belarus-Poland cooperation in growing and processing fruits and vegetables. (BelTA/Business World Magazine)

BELARUS: BMZ-GKS SELLING ARGON TO BULGARIA, ROMANIA AND MOLDOVA

The Belarusian industrial gas producer BMZ-GKS, which was founded by Belarusian Steel Works (BMZ trademark) among other parties, started selling argon to Bulgaria, Romania, and Moldova in 2016, Alexander Olesik, Press Secretary of the BMZ, reported.

The first few batches of argon were delivered to Poland in late 2015. Argon has many applications in the production sector. In 2016 the company managed to considerably expand the geography of sales. BMZ-GKS sold about 200 tons to non-CIS states. Argon is primarily used in metallurgy for welding, cutting, and smelting of rare metals in an argon environment. Argon can also be used to remove impurities from metals.

In May 2015 the industrial gas producer BMZ-GKS commissioned an air separation plant. The project's implementation allowed the Belarusian steel manufacturer BMZ to stop buying oxygen from other suppliers. The company used to buy 40% of the oxygen it needed for steel smelting from other vendors. With the new air separation plant up and running, BMZ was able to reduce its prime costs. Since then the steel mill has bought over 100 million cubic meters of oxygen, 12.7 million cubic meters of nitrogen, and 855,000 cubic meters of argon. BMZ buys up to 95% of the industrial gases the air separation plant produces.

The main domestic buyer of the liquid oxygen BMZ-GKS makes is the scrap metal recycling company Gomelvtorchermet. The Belarusian automobile engineering company BelAZ buys argon from BMZ-GKS while the white goods manufacturer Atlant (based in Minsk and Baranovichi) buys nitrogen. The agricultural machines manufacturer Gomselmash buys small amounts of oxygen. Cooperation with these companies was established via a tender.

The limited liability company BMZ-GKS is a joint venture founded by OAO BMZ - Managing Company of BMC Holding, OOO Belmet (Austria), OOO Belastahl (Germany), OOO Iron Trade (Russia), and OAO Pskovvtorchermet (Russia). (BelTA/Business World Magazine)

BELARUS: PRODUCERS TO UPGRADE QUALITY MANAGEMENT SYSTEMS

Belarusian manufacturers must upgrade their quality management systems to comply with the new standard STB ISO 9001-2015 by September 15, 2018, Chairman of the State Committee for Standardization Viktor Nazarenko reported.

Viktor Nazarenko recalled that a new version of the national standard for quality management system STB ISO 9001-2015, identical to the international standard, was launched in Belarus on March 1. The main focus is on risk analysis across all areas, strengthening the role of leadership and building better systems of knowledge and innovation.

Local organizations should gradually upgrade their quality management systems by September 15, 2018. This deadline is set for all states that are part of the International Organization for Standardization (ISO).

Currently, three Belarusian companies have the certificate of conformity to the STB ISO 9001-2015 standard.

"Today, all countries understand that compliance with the international standards guarantees sales markets in other countries. The systems of measuring and testing, the reference base have been well-developed. Each country tries to keep pace with other competitors and succeed in technological progress", Viktor Nazarenko said.

Over the last decade Belarus has done a lot to apply a system-based approach to quality management, occupational health and safety, food safety and environment management.

Currently, 3,200 organizations have certified their quality management systems in compliance with the STB ISO 9001, 348 organizations operate the quality and food safety control system in compliance with STB 1470, 50 organizations have installed the STB ISO 22000 food safety management system, 20 organizations have the automotive quality management system in compliance with the STB ISO/TS 16949, and so on. (BelTA/Business World Magazine)

UKRAINE BOASTING HIGH QUALITY AND OUTPUT OF WHEAT

This season wheat quality issues are particularly acute.

An increase in feed grain supply from the Black Sea countries is a characteristic feature of the current season. The growth of milling wheat share in Ukraine will be offset by increased feed wheat production in Russia and Kazakhstan.

Traditionally, Kazakhstan produces grain of highest quality compared to other Black Sea region countries. However, it turned out that more than half of the obtained wheat crop is of low quality, due to several factors.

Russian wheat quality has also declined, mainly due to high soil moisture during grain filling stage. Grain quality deteriorated in Russia for several consecutive seasons.

Aside from other Black Sea countries Ukraine stands out both for its higher production and quality compared to last year. (UkrAgroConsult/Business World Magazine)

BULGARIA ENJOYS FAVORABLE WEATHER CONDITIONS FOR COMPETING AUTUMN WORKS

Late October and early November featured a temperature upturn in Bulgaria. The temperature increase against the background of sufficient topsoil moisture reserves caused winter crops to resume their active growth. Exceptions are some parts of South Bulgaria where soil moisture shortages hamper development of winter cereals and rape.

Plants of winter wheat and barley seeded in late September or early October are at tillering stage. Those seeded in the latter half of October are at third-leaf stage. Winter cereals planted in early November are at emergence stage.

Rapeseed crops planted within the agronomical optimal period are at leaf rosette stage (5-7 leaves per rosette).

In early November the country enjoys favorable weather conditions for completing autumn seeding works.

According to the Bulgarian Ministry of Agriculture, as of October 27, winter wheat had been sown at 667.7 thousand ha. The pace of sowing is 3.8% less than in 2015. On the same date in 2015 winter wheat had been sown at 694.4 thousand ha.

The pace of winter barley sowing is 29.7% behind. As of the reporting date winter barley had been sown at 82.2 thousand ha against 116.9 thousand ha in 2015. (UkrAgroConsult/Business World Magazine)

UKRAINE: CHINA OFFERS TO ESTABLISH FREE TRADE AREA

China has proposed to establish Ukrainian-Chinese free trade area. Chinese Ambassador to Ukraine Du Wei said this during an opening ceremony of Ukraine Silk Road International Forum held in Kyiv.

"The Chinese side has proposed to create the Russian-Chinese free trade zone. We hope to intensify a research on this issue with the Ukrainian side", he said.

In addition, according to the Chinese ambassador, the implementation of China's Silk Road Project without Ukraine would be incomplete, even unthinkable. Therefore, Ukraine was one of the first of more than 60 countries to have joined the Silk Road. (Ukrinform/Business World Magazine)

BELARUS: FOOD PRODUCTS POPULAR IN THE CIS

Belarusian food products are in demand on all the markets of the Commonwealth of Independent States (CIS), Belarusian Antimonopoly Regulation and Trade Minister Vladimir Koltovich reported.

"Foreign partners like Belarusian products. Russians, Ukrainians and Kazakhs know that the Belarusian quality is high, and our products are welcome on all the CIS markets", the minister stressed.

Belarus has been actively diversifying its exports.

"Russia is the priority destination. Most of our exports land on this market. Yet, the government has instructed us to diversify the exports. Locally produced goods account for more than 80% of the domestic market today. In line with the food security concept the imports should not exceed 25%. Thus, food security is ensured in the country", Koltovich noted.

When asked about the situation with payments to suppliers, the minister stressed that this issue had never lost its relevance.

"A special commission has been set up in the ministry to deal with the most difficult matters related to payments. Unfortunately, rural retailers are the biggest defaulted debtors today", he said.

Vladimir Koltovich added that this problem could not be settled quickly. Serious system-based efforts are needed here. The ministry keeps close track of the payments between retail networks and companies. (BelTA/Business World Magazine)

UKRAINE: LOGISTIC PROBLEMS HIT GRAIN EXPORTS

Ukrainian 2016/2017 grain exports could be 7 million tons lower than originally expected due to logistical difficulties and some companies have already redirected shipments from Ukraine to other countries, traders said.

Ukraine had planned to ship abroad around 41 million tons of grain in the 2016/2017 July-June season versus around 39 million tons a season earlier.

Volodymyr Klymenko, the head of Ukrainian grain traders union UZA, said a lack of railway grain wagons and a tightening of the rules on grain transportation by trucks were the main obstacles to exports.

"The last grain wagons were built in 1993 and now every wagon is 95% worn-out", Klymenko said.

He said that only around 7,000 wagons could be used by traders at the present time while the country needed around 15,000 wagons to meet all its needs. Ukrainian Railways said it had 13,400 wagons.

"Every day traders order 3,600 to 3,700 wagons while the railway is supplying around 2,200 wagons", a major foreign trader said.

"We are already considering redirection of two vessels from Ukrainian ports to European ones", he added, noting that it would cover contracts using maize of non-Ukrainian origin.

He also added that Ukrainian grain exports in October had been expected at 4.5 million tons, but in the end totaled only about 4 million tons due to the logistic problems.

"In ports we can load even more for exports but wagons are our bottleneck", Mykola Gorbachev from the European business association said.

Traders said new and much tougher rules on grain transport by trucks was the second serious problem that had hit exports.

This summer, Ukrainian transport authorities banned truck carriers from transporting cargo weighing over 20 tons - half the level it was previously.

Klymenko said around 14 million tons of grain were delivered to ports by trucks last season but the new rules made it possible to only deliver half of that volume this season.

He also said that new rules had doubled the transport costs.

Agriculture minister Taras Kutovy has proposed the government to establish a special ministerial commission to resolve the issues. (Daily Mail/Business World Magazine)

RUSSIA: CBANKER SAYS DEPOSIT AUCTIONS ENOUGH TO MOP UP LIQUIDITY

Deposit auctions will be enough to absorb excessive liquidity of the banking sector in the foreseeable future, Central Bank First Deputy Chairwoman Ksenia Yudayeva reported.

"It will be enough for us to hold deposit auctions in the foreseeable future (to absorb excessive liquidity)", Yudayeva said.

The authority organized the first deposit auction in 18 months instead of a usual repo sale because of an expected liquidity inflow at the start of August on August 9. In September the board of directors defined the main parameters of the Bank of Russia coupon bonds (OBR), which would be offered depending on the situation with liquidity.

Yudayeva said that legislation should be changed before OBR bonds will be issued.

"When the law is amended, we will return to the issue", she said. (Prime/Business World Magazine)

UKRAINE: CHS UKRAINE TO START CARBAMIDE IMPORTS IN 2017

CHS Ukraine plans in 2017 for the first time to import carbamide in the amount of 200,000 tons.

"We're trying to trade in fertilizers. In spring we would like to purchase 200,000 tons of carbamide", company CEO Viacheslav Kolosvetov reported.

According to him, the matter concerns possible cooperation with Russia's Uralchem.

Kolosvetov added large agricultural companies were present on the Ukrainian market willing to buy nitrogen fertilizers of imported production, in particular Ukrainian Agrarian Investments, Industrial Milk Company, Agroprosperis.

"We wanted to bring 10,000 tons from Oman by sea through Mykolaiv, but failed to do this", the CHS Ukraine director said.

CHS Inc. is one of the world's largest companies in the field of agriculture, which is managed by farmers, ranchers and U.S. cooperatives. It is engaged in a number of activities such as energy, cultivation of grains and food production, supply of fertilizers and feed, sale of grain and food, as well as providing business solutions in insurance, finance and risk management. (Interfax/Business World Magazine)

RUSSIA: ECONOMY TO GROW BY 1% IN 2017

The Russian economic situation improved in 2016 YoY, and the economy will expand by about 1% in 2017, Economic Development Minister Alexei Ulyukayev said at a meeting with Italian businessmen.

"We expect that economic growth will amount to about 1% next year and will reach 2% or 2.5% in the next three years", the minister said.

The oil price will stabilize at slightly above $50 per barrel and the gas price at about $180-190 for 1,000 cubic meters in 2017-2019, he said.

"This is, from our point of view, the level of the balance which is comfortable both for consumers and producers. These are our expectations connected with the restoration of economic growth in 2017 and its extension into 2018-2019", Ulyukayev said.

According to Ulyukayev, Russia's consumer prices will rise by 5.5% in 2016 and by 4% in 2017.

"This year the figure is record low for us. I understand that for the European level that a 5.5% inflation is low sounds quite weird, nevertheless it is so for Russia", Ulyukayev said. "This year inflation will be about 5.5% and it is quite likely that it will amount to about 4% next year".

Ulyukayev said that Russia wanted to abolish mutual sanctions with the E.U. but the European partners were unwilling to move in this direction.

"This is not our choice. The best proposal would be mutual lifting of the restrictions. We would welcome it, but unfortunately our partners, including the European partners, are not expressing their good will in this respect".

The minister also said that Russian farmers would harvest 117 million tons of grain in 2016, of which 35 million tons would be exported.

"Russia became the largest grain exporter last year with more than 30 million tons. This year the crop is planned at 117 million tons. I think that we will export about 35 million tons", Ulyukayev said.

The 2016 grain harvest forecast earlier amounted to 116 million tons. (Prime/Business World Magazine)

UKRAINE: ESILK ROAD TO HELP ATTRACT INVESTMENTS

Online platform eSilk Road, which was designed for interaction among the Silk Road participating countries, will allow attracting investments to Ukrainian projects.

Wang Bin, the Deputy Secretary General of the Silk Road Chamber of International Commerce (SRCIC), said this at the 2016 Ukraine Silk Road Forum in Kyiv.

"To date, our platform provides $100 million in investment for successful high-quality global projects. I'm sure that if we gather successful quality projects with Ukraine and place them on the Silk Road online platform, we will be able to attract investment and financing for them", Bin said.

According to him, the first phase of design of the platform is already finished. This platform will allow placing the most reliable information about the quality of the world's projects and finance. (Ukrinform/Business World Magazine)

UKRAINE: GERMANY TO PROVIDE EUR 32.5 MILLION TO UPGRADE TRANSFORMERS AND POWER LINES

Germany would provide a loan of up to EUR 32.5 million to Ukraine for the period of up to 30 years and the grace period of 10 years under the second phase of the project on increase of energy efficiency in power transmission (modernization of transformer substations) by the end of this year, the Economic Development and Trade Ministry of Ukraine reported.

"The project is intended to increase quality of power supply thanks to restoration of transformer substations and strengthening power lines", the ministry said.

The ministry said that the agreements were reached during a visit of a ministry's delegation to Berlin on November 3 and November 4, and negotiations with representatives of Germany's Federal Ministry for Economic Cooperation and Development, KfW Bankengruppe and GIZ.

The total volume of the financial assistance from Germany to be provided by the end of 2016 would be EUR 72 million, the head of the Ukrainian delegation and Deputy Economic Development and Trade Minister Maksym Nefyodov said.

Some EUR 16 million is provided for developing democracy, civil society, public administration, regional development and decentralization, EUR 36 million for energy efficiency and EUR 20 million to build and reconstruct houses for internally displaced persons (IDPs).

Along with this loan, up to EUR 24.5 million of financial assistance would be provided as grants for support of the implementation of projects aimed at strengthening Ukrainian local self-government, construction and reconstruction of houses for IDPs, and the rest of the funds is technical assistance for decentralization, public administration reforms and local energy efficiency projects.

The ministry said that since 2002, Germany has provided EUR 500 million of assistance to Ukraine. (Interfax/Business World Magazine)

MOLDOVA: IMF APPROVES OF THE AGREEMENT

The Executive Board of the International Monetary Fund (IMF) approved of three-year arrangements under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) with the Republic of Moldova to support the country's economic and financial reform program.

The cumulative access under the arrangements is SDR 129.4 million (about $178.7 million, or 75% of the Republic of Moldova's quota), reads a press release issued by the resident Representation of IMF in Moldova.

"An amount equivalent to SDR 26 million (about $35.9 million) will be made available to the Moldovan authorities immediately following the approval of the arrangements. The remaining amount will be phased in over the duration of the program, subject to five semi-annual program reviews", the press release writes.

Following the Executive Board discussion on Moldova, Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, said "the Moldovan authorities have developed a comprehensive program - to be supported by a three-year arrangement under the Extended Fund Facility and the Extended Credit Facility - to strengthen the economy and address key vulnerabilities. The program aims at reinforcing the recent economic stabilization and advancing a broad structural reform agenda, particularly in the financial sector".

It is worth mentioning that the president of Parliament Andrian Candu announced that the Executive Board of the International Monetary Fund unanimously approved of the 3-year program with the Republic of Moldova. (TRM/Business World Magazine)

RUSSIA: HARVESTS TO EXCEED 117 MILLION TONS OF GRAINS IN 2016

In the current year, the general grain harvest in Russia will reach 117 million tons, the Minister of Agriculture of the Russian Federation Alexander Tkachev declared.

According to the minister, the reporting index would become the best indicator for the country for 38 recent years (in 1978 - 127 million tons). Russia managed to achieve such results due to the growth of yield, which increased by 60% during several recent years - from 1.7 ton/ha to 2.7 ton/ha. At the same time, the planted areas reduced by 60% - from 74 million ha to 47 million ha.

Also, he reminded that the long-term strategy of development of Russian grain complex provided for the growth of grain production to 130 million tons per year by 2030.

Tkachev stressed that Russia could even increase the production volumes. By 2030, the general grain harvest can total 150 million tons, at the expense of the growth of yield to 3 ton/ha, and enlargement of the planted areas by 10 million ha. Such possible results will cover the growing needs of livestock, and double the export volumes.

According to the Minister, the country has to actively increase the use of fertilizers to achieve such goals. (APK-Inform/Business World Magazine)

UKRAINE: INCREASING OF THE EU TARIFF QUOTAS TO OPEN MARKETS FOR AGRICULTURAL PRODUCTS

The proposal to increase the trade preferences for duty-free supplying of certain Ukrainian products, recently supported by the European Commission, is the indicator of increasing the qualitative indices of Ukrainian products, the Deputy Minister of Agrarian Policy and Food of Ukraine for European Integration Olga Trofimtseva declared.

Increasing of the quotas for the list of Ukrainian goods provides additional opportunities for Ukrainian producers to enlarge the revenues from the trade with the EU by nearly $200 million per year. It is a rather significant index, but the European Parliament and EU member states still have to support the decision. The additional quotas will operate for 3 years, the Deputy Minister explained.

Trofimtseva added that to date, 226 Ukrainian agricultural enterprises had the right to export products to the EU, including the producers of dairy products, meat, poultry, fish, eggs, honey, etc. (APK-Inform/Business World Magazine)

EUROPE: LOGISTICAL PROBLEMS HAVE NEGATIVE IMPACT ON BLACK SEA GRAIN COMPETITIVENESS

This season total grain export capacity of RUK countries (Russia, Ukraine and Kazakhstan) exceeds 90 MMT, up by 10 MMT YoY. However, doubts occur whether the countries will be able to sell this grain volume on the world market. Logistics and quality has become the main problem for exporters.

Logistics has been always a drawback for Kazakhstan - no access to sea limits export capacity of the country. However, the fact that deep-water ports availability is not a panacea for export sales from Russia and Ukraine is one of the main characteristic features of the current season.

Last week Russian agricultural community started gradual lowering grain export estimates. Some companies did it carefully - by 0.3-0.5 MMT, some experts - by 3-4 MMT at once. In general, export expectations went down, mainly due to following reason: strong national currency and difficulties with high-quality grain purchases on the domestic market. And logistics was the most important question.

In theory, export capacity is the same as port handling capacity - 40-42 MMT. In practice, it's not this way. In late October Novorossiysk port had to suspend grain loading due to unfavorable weather conditions. This fact, along with other objective reasons, resulted in significant reduction of grain shipments from Russia.

Moreover, in the months to come weather risks will increase, as winter is approaching. Small ports provide up to 40% of Russian grain exports and have a number of advantages, such as low handling rates, possibility of direct loading, etc. However, in winter frost limits their functioning.

Currently, projects for expansion of existing port capacities and building new ones are being implemented in Russia, but these objects will come into play later, not this season. Besides, in November-December Russia has to increase shipments, in particular to supply grain to Egypt under GASC tenders.

At the same time Ukrainian port capacities are 10 MMT higher than those in Russia. However, there are certain difficulties regarding grain delivery. (UkrAgroConsult/Business World Magazine)

MOLDOVA: NEWLY-REPAIRED FILLING STATION PUT INTO OPERATION AT THE BORDER WITH ROMANIA

The filling station meets all modern environment, safety and comfort standards, a press release of LUKOIL-Moldova reads.

LUKOIL-Moldova is a leading importer and trader of fuel products in Moldova, with a network of 100 filling stations all over the country.

The company has been reconstructing and upgrading its filling stations to provide its clients with more and better services, let alone high quality fuel, a spokesperson of LUKOIL-Moldova said. The company employs more than 1,200 people and is one of the largest traders on the fuel market of Moldova, importing 250,000 tons of fuel a year from Romania, Belarus and Russia. Every year, the company pays about MDL 1.1 billion as taxes and contributions to the budget of the country. (InfoMarket/Business World Magazine)

RUSSIA: OIL SECTOR TO LOSE $1 TRILLION OF INVESTMENT IN 2014-2017

The international oil industry may lose about $1 trillion of investment in 2014-2017 triggering a supply deficit and a high price volatility, Leonid Fedun, a vice president of Russian oil major Lukoil, said.

"The oil industry will lose about $1 trillion of investment in 2014, 2015, 2016, and 2017. We can already say that the existing demand will not be satisfied by about 7 million barrels of the current output until 2025", he said. "The imbalance of supply and demand will lead to a very high volatility on the market, where we will see sky-high jumps and rapid plunges of oil prices, which is not good".

The world oil consumption will grow to 108-109 million barrels per day by 2030 from the 2015 figure of 94.7 million barrels. It would have grown to 140 million barrels if there were no electric cars, he said.

"So we have to produce oil in order to satisfy the demand. But oil has a tendency of natural contraction (of output at existing fields). The average dynamics of contraction stands at 3.1% per year. So every year we have to increase output by 3-3.5% to satisfy the current and future demand", he said.

"Thus, we will have to produce about 39 million barrels of oil more by 2030, which accounts for 40% of the existing production, given the fact that no colossal oil field has been discovered in the past 15 years", he said, adding that the industry had to rely on conventional fields and the U.S. shale oil industry. (Prime/Business World Magazine)

RUSSIA: GOVERNMENT DISCUSSES NO LEVY ON NON-WORKING RUSSIANS

The government is not discussing a tax on all non-working Russians, but only on those who avoid collections on social infrastructure, Labor and Social Protection Minister Maxim Topilin said.

Earlier this year, Deputy Minister Andrei Pudov said that the ministry was discussing reintroduction of the Soviet social parasitism tax, and studied its modern version in Belarus. Topilin said in October that a levy on non-working Russians might be set at 20,000 rubles per year, and the ministry wanted to uncover those who had an income but did not pay social payments.

"We are not saying that it is a tax with a name, we are saying that there is a problem that covers unfair attitude to people who work and pay a personal income tax legally and for whom insurance payments are paid legally", Topilin said. "Someone pays that, but someone thinks that there is no need in that and who can give everyone the finger but go to kindergartens and schools for free and use different services". (Prime/Business World Magazine)

BELARUS: MINSK TO HOST BELARUSIAN-TURKISH BUSINESS FORUM

A Belarusian-Turkish business forum is scheduled to take place in Minsk on November 11, the website of the Belarusian Chamber of Commerce and Industry reported.

Participants of the forum are expected to discuss promising avenues of development of Belarus-Turkey trade, economic, and investment cooperation. Belarusian participants will be able to hold negotiations with top executives of Turkish companies, which are interested in advancing cooperation in the production sector, trade, investments, civil engineering, tourism, and other spheres.

The forum has been arranged by the Belarusian Chamber of Commerce and Industry in association with the Foreign Economic Relations Board of Turkey (DEIK). (BelTA/Business World Magazine)

MOLDOVA: WINES ACTIVELY PROMOTED ON NEW MARKETS

The National Vine and Wine Office (NBVV) reported that, in particular, on November 4 to 6, the Moldovan wine was presented at the Gala Magazyn Wino event in Warsaw.

On the joint stand under the wine brand of the country "Wine of Moldova. Living Legend" 10 wineries presented their products: Chateau Vartely, Bostavan Winery, Vinaria din Vale, Fautor, Cricova, Vinuri de Comrat, Albastrele Wines, DK Intertrade, Suvorov Vin, Salcuta.

During the eighth exhibition Vinexpo Tokyo in Japan (November 15-16), 8 local wineries will present their products: Chateau Vartely, Asconi, Purcari, Suvorov Vin, Vinaria din Vale, Castel Mimi, Albastrele Wines and Migdal P. At the event, the famous wine expert Makoto Endo will conduct a master class and will present the Moldovan wine.

The Japanese market of wines and alcoholic beverages is one of the most dynamic in the Asia-Pacific region: over 5 years, the wine imports increased by about 70%. According to the statistics, over 9 months of this year Japan exported 89,475 liters of wine, and Cimislia, Asconi, Chateau Vartely, Gitana, Et Cetera, Crama Domneasca, Minis Terrios, Bostavan Winery occupied an important niche in the Japanese market.

During the bulk wines exhibition World Bulk Wine Exhibition (Amsterdam, November 21-22) the wine from Moldova will be awarded a new prize - Voice of Wine for the efforts of the winemakers, wineries and authorities to promote the filling of wine, for the ability to adapt to the needs of the international market and for the quality of the wines. Currently, more than 85% of all global transactions with bulk wine is carried out at the exhibition in Amsterdam.

Also, for the third consecutive year, the Moldovan wine is present at the Good Wine exhibition in Romania. The 18th edition of the event, under a single national brand "Wine of Moldova. Living Legend" will be attended by 12 major wineries (Garling, Chateau Vartely, Vinaria Tiganca, Dionis Club, Fautor, Doina Vin, Corten Vin, Vinaria din Vale, Migdal-P, Basavin & Co, Vinaria Bostavan, Castel MIMI) and 5 small producers (Pelican Negru, Equinox, Minis terios, Et cetera, Timbrus, Mezalimpe) from Moldova. Romania is a market with an annual growth of 50% of Moldovan wine consumption.

For the second consecutive year, many Moldovan wineries have participated at the Food Fair exhibition (October 27-29, Tallinn). The participation of Moldovan wines in the exhibition was held with the support of the Moldovan Embassy in Estonia, as well as the German Agency for International Cooperation. On the Wine of Moldova joint stand, alongside with 5 wine producers (Tomai Vinex, Wine International Project, Et Cetera, Vinaria Bostavan and Asconi), were also a few producers of fruit and honey.

After last year's victory when Moldovan wine received a gold and a silver medal at the Asia Wine Trophy exhibition, held in the frame of Daejeon International Wine & Spirits Fair, this autumn the wine again went to South Korea for the exhibition (October 28-30). For the first time the Moldovan wine was represented on the general stand that united 10 manufacturers - Cricova, Asconi, Vindicum, Carpe Diem, Castel MIMI, Maurt, Vinaria din Vale, Chateau Vartely, Minis Terrios, Timbrus.

Director of the National Vine and Wine Office Gheorghe Arpentin said that the wine from Moldova was becoming more recognized and popular on various foreign markets, thanks to the efforts and the actions envisaged by the marketing strategy, successfully implemented by NBVV. According to him, the presence of these international exhibitions is a conscious step taken for the expansion on the strategic markets with enormous potential for the Moldovan wine industry. (InfoMarket/Business World Magazine)

RUSSIA: OVER 31 THOUSAND TONS OF GRAINS PURCHASED TO THE INTERVENTION FUND

On November 8, National Mercantile Exchange CJSC (NAMEX) held the regular stock exchange trading within frames of public grain purchasing interventions in the regional trading platforms of Russia, and purchased 31.185 thousand tons of grains (from the proposed volume of 32.4 thousand tons) valued at 287.844 million rubles, the press-service of NAMEX declared.

In particular, the fund purchased 18.9 thousand tons of 4-grade wheat (whole proposed volumes), 9.585 thousand tons of 5-grade wheat (from the proposed volume of 10.8 thousand tons), and 2.7 thousand tons of 1-group barley (whole proposed volumes).

The weighted average prices of the grains sold to the intervention fund were as follows: 3-grade wheat – 10’521.3 rubles/ton; 4-grade wheat – 9’722.9 rubles/ton; 5-grade wheat – 8’217.6 rubles/ton; 1-group barley – 7’865.2 rubles/ton.

Since the beginning of the purchasing auction (September 19), the intervention fund at NAMEX exchange site already purchased 654.21 thousand tons of grains valued at 6.235 billion rubles. (APK-Inform/Business World Magazine)

RUSSIA: ROSSELKHOZNADZOR TO PROMOTE GRAINS ON NEW SALES MARKETS

In the nearest future, the Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) plans to discuss the issues on increasing of Russian grain supplies with the competent services in the sphere of quality control and safety of grains and its by-products of several countries, the press-service of Rosselkhoznadzor declared.

According to the announcement, in particular the list of countries includes the Philippines with potential imports of wheat in 2016/2017 MY at 5 million tons, while last season Russia did not ship grain to the country.

Also, the list of countries includes India (the forecast of wheat imports totals 3 million tons, in 2015/2016 MY the import from Russia was absent), Afghanistan (wheat imports forecast - 2.7 million tons, no imports from Russia in 2015/2016 MY), Peru (1.9 million tons, corn - 2.9 million tons, in the 2015/2016 MY Russia supplied 143 thousand tons of wheat), and Mexico (wheat imports forecast - 4.6 million tons, corn - 13.8 million tons, in 2015/2016 MY Russia supplied 388 thousand tons of wheat).

Furthermore, Rosselkhoznadzor noted that due to significant reduction of wheat harvest volumes in France Russia had the opportunity to increase the supplies to the countries, which traditionally relied on wheat from France - Tunisia, Algeria and Morocco. So, in July-September Russia significantly increased exports of wheat to Morocco - to 0.5 million tons, up 4.3 times compared with the whole 2015/2016 MY (119 thousand tons). Also, Russia made the first deliveries of wheat (22 thousand tons) and barley (62.5 thousand tons) to Algeria.

Rosselkhoznadzor is actively working to increase the supplies of grains to the countries of the South East Asia (Indonesia, Thailand, Vietnam), East Asia (China, South Korea), the Middle East (Syria, Iraq, Saudi Arabia) and South America (Venezuela, Colombia). (APK-Inform/Business World Magazine)

RUSSIA: LUKOIL READY TO LIMIT OIL PRODUCTION BY CLOSING OLD WELLS

Oil major Lukoil is ready to limit oil production in line with a Russian government decision by suspending old oil wells in Western Siberia, Vice President Leonid Fedun reported.

"We are ready for the cut, if there is a ruling of the government. As I see it, the issue is not about a cut, but about a freeze. But what will be chosen as a freezing point - the level of the middle of the year or end of the year? This is yet to be discussed", he said. "The efficiency of new fields is very high. The cost of production at these fields is two times lower than the cost of production at brown fields in Western Siberia, so it is simply a matter of economic efficiency. We should close old wells with low efficiency, and we have, let's say, 20% of wells that provide about 1% of our output. And suspension of such a well increases economic efficiency of the company".

Lukoil does not plan to leave Bashneft-Polyus, a joint venture with oil company Bashneft, which develops the Trebs and Titov oil fields in which Lukoil owns 25.1%.

"No, we are not thinking about that. We have an agreement on that joint venture, and the agreement is in effect", he said.

Proven reserves of the Trebs and Titov fields amounted to 240.2 million barrels of oil as of December 31, 2015. (Prime/Business World Magazine)

RUSSIA: OIL OUTPUT TO FALL IN 2017

Russia's oil and gas condensate output may decrease by 1% to 10.9 million barrels per day in 2017, OPEC said in its World Oil Outlook.

Russia's daily oil output may remain at 10.9 million barrels in the period from 2017 until 2019 and may fall to 10.8 million barrels in 2020. But in 2025-2040, Russia will be producing 10.9 million barrels daily.

The global oil demand will increase by 17.6% over the period between 2015 and 2040 to 109.4 million barrels daily. The majority of the increase will be compensated by higher output of OPEC states with their market share rising to 37% from 34%. (Prime/Business World Magazine)

RUSSIA: BASHNEFT STOPS SENDING OIL TO HUNGARY VIA PIPELINE

Russia's Bashneft has stopped sending oil to Hungary and Slovakia through the Druzhba pipeline in what traders believe reflects a change in marketing strategy under Bashneft's new owner Rosneft.

Bashneft had an export quota of 525,000 tons via the Druzhba pipeline to Slovakia and Hungary in October-December. In October it shipped around 180,000 tons of oil in line with the export schedule, traders said.

Bashneft has been exporting oil through the pipeline for the last four years, selling it via Belize-based trading firm Normeston under a long-term contract.

But since the start of November, Bashneft has stopped sending oil to Slovakia and Hungary via the Druzhba pipeline, industry sources said.

Traders believe the cut-off is related to changes Rosneft has made to Bashneft's trading practices and export destinations since the state-controlled Russian energy major acquired a controlling stake in Bashneft last month.

Rosneft paid 330 billion rubles for a 50.1% stake in Bashneft and was now seeking government approval to buy up to 100% of Bashneft.

Traders believe that Bashneft will now stop trading its crude oil via Normeston as Rosneft's management favors direct contracts with end-users.

Traders think that Rosneft diverted Bashneft oil intended for Slovakia and Hungary to the ports. Rosneft and Bashneft each got extra positions in the November loading plan as of the start of last week.

Hungarian energy company MOL is the only end buyer of crude oil from Russia delivered to Hungary and Slovakia.

Apart from Bashneft, Lukoil, RussNeft and small independent Russian producers supply crude oil to Hungary and Slovakia. MOL also imports various Mediterranean grades via the port of Omisalj.

Traders saw no political overtones to the decision to stop sending oil via the pipeline and believed Hungary and Slokavia should easily be able to make up for the shortfall in oil imports by buying more from its main supplier - Lukoil.

Moscow has in the past used energy supplies as a political and economic tool, responding to natural gas price disputes with Ukraine for example by cutting off supplies, affecting its European clients further down its pipelines.

With tensions between Russia and Ukraine running high since Moscow's seizure of Crimea in March 2014, Ukraine has increased its ability to import gas from E.U. countries such as Slovakia and Hungary. (Prime/Business World Magazine)

RUSSIA: TRADE SURPLUS DOWN IN JANUARY-SEPTEMBER 2016

Russia's foreign trade surplus decreased by 43.2% YoY to $72.1 billion in January-September, the Federal Customs Service said.

Exports decreased by 22.9% to $202.6 billion in the period, while imports fell by 3.9% to $130.6 billion.

Foreign trade fell by 16.4% YoY to $333.2 billion in the period. (Prime/Business World Magazine)

RUSSIA: M2M PRIVATE BANK FAILS TO REDEEM 329 MILLION RUBLES REPO MONEY

Moscow-based M2M Private Bank has failed to redeem 329.4 million rubles of liabilities under a repo deal.

The bank received the money in exchange for bonds of VEB-Leasing on November 3, and was to return the money and received an official warning.

M2M Private Bank was ranked 156th largest bank by assets as of late June, and it is 100% owned by Asian-Pacific Bank. (Prime/Business World Magazine)

RUSSIA: KASPERSKY LAB FINDS TELEGRAM USING MALWARE

Russia's Kaspersky Lab has revealed the first malware that cypher text and graphic files and uses popular messenger Telegram to communicate with perpetrators, who demand a 5,000 ruble ransom from users, the antivirus genius said in a statement.

"If you fall victim of the encoder, we ask you not to pay the fraudsters. You can address our support service and we'll help you to decipher the files. We see that threat from decoders is growing quickly. That is why we are doing our best to help users tackle the issue", Fyodor Sinitsyn, senior antivirus analyst at Kaspersky Lab, said.

Telegram's bot cyphers messages. The malware's creators received a unique token, exploited to authorize users and secure messages, from the messenger's servers. (Prime/Business World Magazine)

RUSSIA: RAMBLER TO KICK OFF APP TO BUY CINEMA TICKETS

Russia's Rambler Internet Holding, an Internet portal operator, will launch a cinema schedule application, called Popcorn, which will compete with Kinopoisk of Internet giant Yandex.

Sources familiar with the holding's plans said the application and a Web site would contain information on movies, including synopses, trailers, cast and news. Cinema tickets will be available for purchase via Rambler.Kassa, the holding's payment vehicle.

Rambler Internet Holding filed applications for the Popcorn trademark in Russian and English to the Federal Intellectual Property Service in late October, and the documents mention software, advertisements, information on entertainment and ticket booking, among others.

"It will be a new project linked to the industry of cinema and entertainment, whose audience will be Russian users", a spokesperson for Rambler Internet Holding said.

A spokesperson for cinema chain Formula Kino said the share of online sales of tickets grew every year.

"In 2008, the share of online sales of tickets was at 0.22%; in 2014 it reached almost 12%; in 2015 it was at 16.28%. According to our forecast, the share of online sales will be at 20% by the end of 2016", the spokesperson said. "Viewers got used to an option of buying tickets at any moment via their gadgets. We expect the growth rates of online ticket sales to be at least 5% per year in the nearest future". (Prime/Business World Magazine)

RUSSIA: MINISTRY OF AGRICULTURE FORECAST OF GRAIN EXPORTS IN 2016/2017 MY DOWN

The Ministry of Agriculture of Russia lowered the forecast of grain exports in 2016/2017 MY to 35 million tons.

The officials also reduced the forecast of wheat exports to 28 million tons, the Ministry's press-service declared.

Previously the Ministry estimated the volumes of foreign supplies of Russian grains on foreign markets in the current season at the level of 40 million tons, and wheat - nearly 30 million tons. (APK-Inform/Business World Magazine)

RUSSIA: BARLEY EXPORTS DOWN IN SEPTEMBER 2016

In September 2016/2017 Russia increased barley export volumes compared to August, but they are still 18% lower than in September 2015 (466.7 KMT against 568.3 KMT in September 2015).

Over 3 months of the season barley exports from Russia are 28% behind last season totaling 1268.6 KMT compared to 1766.2 KMT in July-September 2015/2016. Share of key importer - Saudi Arabia - still accounts for 55% in the structure of barley exports, but in the actual volumes the quantity exported is 452.7 KMT or 39% lower (totaling 702 KMT). Higher exports were observed in the destination of such smaller markets as Algeria, Lebanon, Israel and Egypt.

Exports to Morocco exceeded the volumes of last season - 19.3 KMT over the first three months of 2016/2017 against 16.9 KMT over the whole 2015/2016.

It should be mentioned that Ukraine increases barley exports to this prospective supply market. In the reporting period Ukrainian exporters managed to export 86 KMT to Morocco compared to 25.3 KMT over the whole previous season. Barley import necessity of Morocco is estimated at the level of 800 KMT, according to USDA. (UkrAgroConsult/Business World Magazine)

SERBIA TO USE AZERBAIJAN'S TRANSIT POTENTIAL

Serbia may use Azerbaijan's transit potential, as well as join the Trans Adriatic Pipeline (TAP), Azerbaijan's Economy Minister Shahin Mustafayev said.

Mustafayev made the remarks during his meeting with Serbian Prime Minister Aleksandar Vucic, as well as Deputy Prime Minister and Minister of Construction, Transport and Infrastructure Zorana Mihajlovic.

The minister also noted the possibility of Azerbaijani companies' participation in the privatization process, as well as in the implementation of infrastructure and public projects in Serbia.

Mustafayev also noted that the Serbia-Azerbaijan Chamber of Commerce already operated in Belgrade in order to develop trade and economic relations.

During the visit, the Azerbaijani minister took part in the opening of a section of the Ljig-Prelina highway in Serbia. It should be noted that Azerbaijan allocated a loan worth 300 million euros to Serbia for the project's implementation. Total length of the highway is 40.3 kilometers. Sixty-six bridges and four tunnels have been built along the highway. Azerbaijan's AzVirt LLC was the project's main contractor. (Trend/Business World Magazine)

UKRAINE: SHARE OF USED CARS UP IN SEPTEMBER-OCTOBER 2016

The share of primary registration of used passenger cars in Ukraine in September-October reached 30% of the total registration of passenger cars in Ukraine for the period (new and used), whereas in the previous eight months the figure stood at 10%, the Ukrautoprom association has said.

The growth of primary registration of used cars was due to the coming into effect of the changes to the Tax Code from August 1, which for three years significantly reduced excise duty on such cars.

According to Ukrautoprom, in October 9,167 cars were registered on the primary market, while 34% (3,094 cars) were used ones. Compared to October last year, the primary market of second-hand cars grew by 82% and from September this year by 13%.

Among used cars the leading brands in October were Volkswagen (564 units), Renault (545 units), and Skoda (340).

In general, a total of 11,204 vehicles were registered on the primary market in October (including commercial vehicles and buses), in particular the share of used vehicles was 38% (4,272 units).

Some 1,163 cars were registered in the segment of commercial vehicles in October, up by 25% MoM, but down by 25% YoY. (Interfax/Business World Magazine)

TURKEY: TANAP CONSTRUCTION TO BE COMPLETED BY 55% UNTIL YEAR-END

It is planned to complete the construction of the Trans Anatolian Natural Gas Pipeline (TANAP) by 55% until the end of 2016, Berat Albayrak, Turkey's minister of energy and natural resources, reported.

Albayrak noted that Turkey was moving confidently in the direction of creating an energy hub and successfully diversifying energy sources.

"Turkey is geographically located close to the energy-rich regions, such as the Caspian Sea region, the Middle East and Central Asia", the minister said. "Access to gas sources is important for energy security".

He also noted that the TANAP and Turkish Stream pipelines would help Turkey to become gas trade center.

TANAP project envisages transportation of gas from Azerbaijan's Shah Deniz field to the western borders of Turkey. The length of TANAP is 1,800 kilometers with the initial capacity of 16 billion cubic meters.

Around 6 billion cubic meters of this gas will be delivered to Turkey and the remaining volume will be supplied to Europe.

The gas will be delivered to Turkey in 2018, and after completion of the Trans Adriatic Pipeline's construction, the gas will be delivered to Europe in early 2020.

TANAP shareholders are Azerbaijan's state oil company SOCAR (58%), BOTAS (30%) and BP (12%). (Trend/Business World Magazine)

TURKEY: TESTING OF BTK RAILWAY TO START IN JANUARY 2017

Testing of the Baku-Tbilisi-Kars (BTK) railway will start on January 1, 2017, governor of Turkey's Kars province Rahmi Dogan said.

Dogan said the second phase of the project was expected to start after commissioning of its first phase.

"The BTK railway project will contribute to the development of our region and the growth in exports of the countries involved", Dogan said.

The Baku-Tbilisi-Kars railway is being constructed on the basis of the Georgian-Azerbaijani-Turkish intergovernmental agreement. It is planned to be commissioned in early 2017.

The peak capacity of the railway will be 17 million tons of cargo per year. At the initial stage, this figure will be 1 million passengers and 6.5 million tons of cargo. (Trend/Business World Magazine)

CHINA: TRADE TURNOVER WITH RUSSIA UP IN JANUARY-OCTOBER 2016

The volume of trade turnover between Russia and China has increased by 0.5% in annual terms to $56.2 billion over the 10 months of this year, the Chinese General Administration of Customs reported.

According to the administration, Chinese export to Russia grew by 5.9% YoY to $30.1 billion, while imports decreased by 5.2% to $26.1 billion.

Trade turnover between Russia and China in 2015 decreased by 27.8% to $64.2 billion. Chinese export to Russia fell by 34.4% last year to $32.9 billion, while imports decreased by 19.1% to $31.4 billion. (TASS/Business World Magazine)

UKRAINE: FLIGHTS BETWEEN KYIV AND LJUBLJANA TO RESUME

Ukraine and Slovenia have agreed to resume direct flights between Kyiv and Ljubljana, Ukrainian President Petro Poroshenko has said.

"Discussing cooperation in the field of transport, we've agreed to resume direct flights between Kyiv and Ljubljana", he reported after talks with Slovenian President Borut Pahor.

The Ukrainian president said this would contribute to deepening cooperation and tourism and business potential that existed between the two countries. (Interfax/Business World Magazine)

UKRAINE: ALLSEEDS PLANT PROCESSES 120 KMT OF SUNFLOWER SEEDS

From the start of the 2016/2017 season Allseeds has been steadily increasing the volumes of sunflower seeds processed at its oil-extracting plant in Yuzhny.

As of the end of October, net volume of seeds processed amounted to 120 thousand tons, with 110 thousand tons seeds of the new harvest.

In September 79% of the plant capacity was used, in October the rate rose to 92% and 55 thousand tons of seeds were processed.

The goal of Allseeds Group for the 2016/2017 marketing year is to process 600-650 thousand tons of sunflower seeds at its oil-extracting plant. (UkrAgroConsult/Business World Magazine)

KAZAKHSTAN: FROST AND PRECIPITATION HAMPER PLANTING OF WINTER WHEAT

Moderately warm weather with precipitation and night frosts to 12 degrees C was observed in the south and south-east of Kazakhstan on October 21-31. Such weather conditions were less favorable for preparation of fields and completion of winter wheat planting.

In Almaty region winter wheat is at stages varying from germination to emergence; its growth has stopped in some areas. The state of winter wheat is excellent and good everywhere. This excludes crops that stopped growing due to frosts: their condition is fair. In Zhambyl region the state of winter wheat is good everywhere, its plants are at stages ranging from germination to emergence. In South Kazakhstan region farmers continue sowing winter wheat after pre-plant tillage.

Harvesting works were generally almost completed in Kazakhstan by November 1. Farmers harvested 23.68 MMT of cereals this year. (UkrAgroConsult/Business World Magazine)

FINLAND: BALTIC LINE FINLAND SIGNS LONG TERM TC-AGREEMENT WITH PRIMA SHIPPING

Baltic Line Finland has signed a long term TC-agreement with Prima Shipping for mv Baltic Madonna. The vessel will replace mv Link Star in January 2017, Port of Turku said in its press release.

Port of Turku welcomes mv Baltic Madonna to join Baltic Line's fleet sailing between Finland, Baltic States, Poland, Denmark, Sweden and Norway. (Portnews/Business World Magazine)

BELARUS: GDP ENERGY INTENSITY HALVED

The energy intensity of Belarus' gross domestic product was halved in the last 13 years. The information was released by Vitaly Kretsky, Head of the Department for Organizational and Legal Work and Interaction with Mass Media in the State Standardization Committee of Belarus.

The official said: "The energy intensity of Belarus' GDP has been halved over the course of 13 years. Today our GDP energy intensity is close to that of Finland and Canada, which enjoy similar climatic conditions".

At present Belarus' GDP energy intensity stands at 0.19 tons of oil equivalent per $1,000 worth of merchandise.

"In 2016-2020 it is necessary to reduce the GDP energy intensity to the world's average - by 2% at the end of the five-year term. Plans have been made to reduce the GDP energy intensity in 2016 by 0.4% in comparison with 2015", the representative of the State Standardization Committee of Belarus said.

The official remarked that considerable reserves in the area of energy saving were available in Belarus. Certain measures and projects stipulated by the government program on energy saving have to be implemented in every branch of the economy. Plans have been made to save 5 million tons of fuel equivalent in 2016-2020. (BelTA/Business World Magazine)

BELARUS TO TAKE PART IN MODERNIZATION OF CUBAN STEEL MANUFACTURERS

Belarus may take part in the projects to upgrade Cuban steel manufacturers. This issue was on the agenda of the meeting of Belarus' Ambassador to Cuba Alexander Alexandrov with director of the Mexican company BH Equipos de Mexico Jose Gonzalez in Havana, the press service of the Belarusian Ministry of Foreign Affairs reported.

"The sides discussed the possibility to purchase Belarusian machine building products for the implementation of projects to upgrade Cuban steel manufacturers, including with the use of the export loans of the Development Bank of the Republic of Belarus", the statement of the press service reads.

The sides agreed to arrange the visit of Jose Gonzalez and other interested businessmen to Belarus. They will get familiar with the Belarusian manufacturing potential and analyze the possibility to use it for the implementation of projects to develop the iron and steel industry in Cuba and in Latin America in general.

The participants of the meeting also discussed the organization of the Belarusian-Mexican business forum in Mexico City in 2017.

BH Equipos de Mexico implements projects to modernize Cuban manufacturing enterprises, including in the iron and steel industry. (BelTA/Business World Magazine)

BELARUS: BELARUSBANK TO HAVE KAMVOL'S $229,434 CREDIT SECURED

Belarusbank will have its $229,434 credit to OAO Kamvol fabric manufacturer secured by the government.

The credit was issued in February 2014 to help the fabric manufacturer replenish circulating assets.

The government's security will cover the repayment of the principal debt and credit interest payments (except for interest payments refunded at the expense of the central budget).

Kamvol is due to repay the $229,434 credit in the period from January 1, 2018 till December 31, 2019.

The government's security is provided in the currency of the credit, with 0.01% of the credit amount charged as a one-off credit security fee.

OAO Kamvol fabric manufacturer has been operating since 1955. The company is the largest producer of woolen fabrics in the CIS states. Kamvol products are exported to Russia, Ukraine, Azerbaijan, Italy, Poland, Latvia and Lithuania. (Prime-TASS/Business World Magazine)

BULGARIA: BULLISH TRENDS ON GRAIN MARKET CONTINUE

Last week Bulgaria's domestic market of cereal crops saw a rise in purchase prices. The bullish factors for them included strong grain demand, both from traders and processing companies, along with appreciation of the Bulgarian currency against the US dollar.

Prices for Bulgarian milling wheat also continued growing on the export market. Over the week, export prices for 11.5%-protein milling wheat increased by another $1-2. Strong import demand from European Union countries keeps supporting the export market. As before, another bullish factor is the growth of export milling wheat prices in other countries of the Black Sea region.

The most significant increase in prices was observed on the feed wheat market. Almost all export availabilities of Bulgarian feed wheat have already been marketed therefore domestic supply has shrunk substantially. Exporting and milling companies having the greatest need for grain raised purchase prices considerably on the week under review to fill their grain shortages.

A similar situation is on the barley market. 80% of Bulgaria's barley export potential has already been used and extremely limited stocks of this crop are still left in the country.

Domestic corn prices in Bulgaria continue growing despite harvest progress and new-crop grain arrivals. Due to a second year of corn crop failure in the EU, including Bulgaria, growers are not in a hurry to sell the harvested crop as they wait for more significant price upturn.

This tendency will remain in the short-term perspective due to logistical problems in other Black Sea countries (Russia and Ukraine). (UkrAgroConsult/Business World Magazine)

UKRAINE: NBU TO CUT CASH TO 9.5% OF GDP BY 2020

The National Bank of Ukraine (NBU) hopes to cut cash from 14.3% in 2015 to 9.5% of GDP in 2020, NBU Governor Valeriya Gontareva has said.

"We set the introduction of cashless payments as a top priority task. We believe that this is one of the key strategic directions for developing the Ukrainian banking system. According to the NBU's data, last year the public received 58% of income in the cashless form. However, only 18% of expenses were cashless. This is the evidence that the majority of population get used to withdraw money from payment cards in cash at ATMs. Our ambitious goal is to cut cash from 14.3% of GDP in 2015 to 9.5% of GDP in 2020", Gontareva said.

She said that the top priority directions for introducing cashless payments are daily transactions, in particular, payment for transportation, utility services and the transfer of all payments by the state, starting from pensions and educational scholarships, into cashless form.

Gontareva said that the public program to introduce cashless economy would help to unite efforts of all public agencies and market players to implement a joint cashless payment project.

She said that the NBU's efforts would focus on reducing demand on cash, popularization of cashless payments, development of payment infrastructure and changing habits of people. (Interfax/Business World Magazine)

LITHUANIA: THROUGHPUT OF KLAIPEDA PORT UP IN JANUARY-OCTOBER 2016

Freight volume handled at the Port of Klaipeda between January and October increased by 3% YoY and totaled 33.27 million tons, the Port Authority statistics said.

In October, the port handled 3.38 million tons of cargo (-0.2%, YoY) including 1.52 million tons of liquid bulk cargo (-14.6%), 1.18 million tons of general cargo (+25.4%) and 670,440 tons of dry bulk cargo (+2.2%)

State-run Port of Klaipeda, the northernmost ice-free port on the East coast of the Baltic Sea, is the largest Lithuanian transport hub, connecting sea and inland traffic lanes. There are 17 stevedore companies, shipyards and other operators at the port, providing a broad range of services. Throughput of Klaipeda port in 2015 (including Butinge Terminal) rose by 9% YoY, to 38.44 million tons. (Portnews/Business World Magazine)

LATVIA: THROUGHPUT OF PORT RIGA DOWN IN JANUARY-OCTOBER 2016

In January-October the Freeport of Riga handled 30,410,900 tons of cargo (-8.8%, YoY).

According to the port authority, coal transshipment fell by 12.2% to 10,611,100 tons, oil products - by 20.7% to 7,051,400 tons, wood pellets – by 11.4% to 438,800 tons, ore went up 1.7 times to 337,600 tons.

The port's container throughput climbed by 6.5% to 314,335 TEUs.

Passenger turnover increased by 7.1% , to 496,054 persons including 69,993 cruise passengers (+3.4%).

Freeport of Riga lies on both banks of the River Daugava covering 6.3 ha. The port's berth length is 13,800 m, maximum draft at the berths is 12.2 m. Up to 80% of the Freeport of Riga cargo turnover is made up of transit cargoes forwarded to or received from the CIS countries. In 2015, the port's throughput totaled 40,055,800 tons of cargo. (Portnews/Business World Magazine)

LATVIA: THROUGHPUT OF PORT VENTSPILS DOWN IN JANUARY-OCTOBER 2016

In January-October the port of Ventspils handled 15.5 million tons of cargo (-19.7%, YoY), the port authority says. In October the port handled 1.4 million tons of cargo.

Transshipment via Ventspils Nafta terminals totaled 6.6 million tons (-21%), via Baltic Coal Terminal dropped by 50% to 767,000 tons, via Ventspils tirdzniecibas osta – by 32% to 1.7 million tons, via Ventall Terminals – by 49% to 593,000 tons, via Ventbunkers - by 27% to 697,000 tons, via SIA Ventamonjaks - by 13% to 350,000 tons.

Ventspils Grain Terminal handled 362,000 tons of grain. Transshipment via Ventplac increased by 13% to 398,000 tons, via Ventamonjaks Serviss – by 4% to 157,000 tons, via Noord Natie Ventspils Terminals – by 16% to 2.1 million tons.

Eurohome Latvija commenced operation in April and handled 266 million tons of cargo. Overseas Estates commenced operation in September and handled 5,000 tons of palm oil.

The Freeport of Ventspils Authority is set to invest 8 million euros into the development of port infrastructure this year. A part of investment program will be financed by the Cohesion Fund of the EU. The works will include dredging, reconstruction of infrastructure facilities and construction of new ones, designing of the industrial area.

Ventspils port is located near Venta river. There are terminals for loading and unloading of crude and oil products, liquid chemicals and fertilizers, metal and coal, timber and fish, containers and Ro-Ro trailers. (Portnews/Business World Magazine)

MOLDOVA: TRADE WITH ROMANIA

The volume of trade turnover between Moldova and Romania over 8 months of 2016 amounted to $873.06 million of which the Moldovan export equaled $344.92 million, and the Romanian import - to $528.14 million.

In Romania's trade with the countries outside the European Union, Moldova ranks the 4th place in export terms (purchase of Romanian products) after Turkey ($1.4 billion), US ($0.7 billion) and Russia ($0.7 billion), as well as the 8th place in import terms (supplies to the Romanian market), after Turkey, Russia, Ukraine, the USA, South Korea, etc.

At the same time, for Moldova, Romania is the EU's main trading partner with a share of 31.6%, and ranks the first place, both in exports and in imports. The priority areas of the bilateral cooperation between Moldova and Romania are the following: energy, trade, agriculture, industry, small and medium enterprises and business environment, transport, regional development and infrastructure, cross-border cooperation, environmental protection, water and forestry, education, research and innovation, regulation, standardization, metrology, accreditation, conformity assessment and industrial safety, tourism, and the banking sector. (InfoMarket/Business World Magazine)

TURKMENISTAN TO DRAW FOREIGN CAPITAL

Turkmenistan's investment policy is aimed at drawing foreign capital, Turkmen President Gurbanguly Berdimuhamedov said in a message addressed to the participants of the eighth International Investment Forum.

According to the message, the main task of the investment forum is to diversify and increase the competitiveness of local economy and introduce innovative technologies in the industry.

The Turkmen Ministry of Economy and Development and Chamber of Commerce and Industry are the organizers of the event, the message said.

"The beneficial investment projects, in particular, those on the formation of innovative economy in the country, are supported", President Berdimuhamedov said.

According to the message, the national program of Turkmenistan's social-economic development envisages the modernization of the national industrial complex, the formation of the economy based on the latest technologies.

"Turkmenistan has set a specific goal to produce domestic products to replace imported goods and increase the volumes of export through the widespread introduction of innovations", the Turkmen president added.

He said that the activity opened up new spheres for cooperation in the field of precision engineering and biotechnologies, information technologies, renewable energy sources, telecommunications.

Turkmenistan pays special attention to the development of private entrepreneurship, the message said. All conditions are being created to stimulate domestic investments of private entrepreneurs and implement joint investment projects with foreign partners. (Trend/Business World Magazine)

UKRAINE: ELECTRICITY EXPORTS IN JANUARY-OCTOBER 2016

Ukraine in January-October exported electricity valued at $123.288 million, in particular $9.003 million in October.

According to the State Fiscal Service, electricity delivered to Hungary amounted to $93.734 million, to Poland to $29.199 million, Moldova to $347,000, other countries to $7,000.

In addition, in January-October Ukraine imported $3.006 million worth of power from Russia, and $57,000 from Belarus.

Ukraine in January-October 2015 exported electricity valued at $125.689 million, in particular to Hungary for $121.797 million, Poland for $1.672 million, Slovakia for $1.115 million, and other countries for $1.105 million. (Interfax/Business World Magazine)

UKRAINE: 13.1 MILLION TONS OF COAL IMPORTED IN JANUARY-OCTOBER 2016

Ukraine in January-October 2016 imported coal and anthracite valued at $1.17 billion, in particular $129.084 million in October.

According to the State Fiscal Service, Russia supplied $742.938 million worth of coal, the United States - $168.547 million, Australia - $73.348 million, other countries - $184.879 million.

The total volume of coal delivered to the country in ten months amounted to 13.104 million tons.

Ukraine in January-October exported 458,140 tons of coal and anthracite valued at $37.985 million, in particular $21.895 million to Slovakia, $7.484 million to Russia, $4.765.889 million to Turkey, and $2.725 million to other countries. (Interfax/Business World Magazine)

UKRAINE: MINIMUM ALCOHOL PRICES UP

Ukraine's Cabinet of Ministers has approved of new increased minimum alcohol prices, in particular, the floor price of a half-liter bottle of vodka was increased from 54.90 to 69.78 UAH.

"The revision was required as prices set since September 2015 have not met real expenses of producers", Deputy Prime Minister and Economic Development and Trade Minister Stepan Kubiv said.

Head of the State Regulatory Service of Ukraine Ksenia Liapina said that the prices were set only on the basis of an economic analysis after long consultations with all interested sides.

Interior Minister Arsen Avakov proposed to increase the price to 70 UAH, but Kubiv said that there were proposals to set 104 UAH per bottle.

A representative of the Federation of Employers of Ukraine reminded the government about the requirement of the law on the 2016 national budget to set minimum prices for tobacco, as well.

"Everything is not so simple on the tobacco market. I heard that some corrupted proposals were behind it", the prime minister said.

He said it was decided to discuss minimum alcohol prices in public for four months and a professional discussion took place. (Interfax/Business World Magazine)

UKRAINE: SUNFLOWER HARVESTING ABOUT TO FINISH

Ukrainian farmers are completing sunseed harvesting.

As of November 8, they gathered sunseed from 5716 thousand ha or 97% of the intended area (5916.2 thousand ha), up by 14.5% YoY (4992 thousand ha). Farmers obtained 12752 KMT of sunseed with the average yield of 2.23 MT/ha, which is all-time high for Ukraine. In 2015 farmers gathered 10862 KMT of sunseed with the average yield of 2.18 MT/ha.

Soybean has been gathered from 1696 thousand ha, which is 92% of the intended 1837.1 thousand ha. Farmers harvested 3830 KMT of soybean with the average yield of 2.26 MT/ha. In 2015 farmers gathered 3641 KMT of soybean with the average yield of 1.76 MT/ha. (UkrAgroConsult/Business World Magazine)

UKRAINE: UKRGAZVYDOBUVANNIA TO INVEST $3 BILLION IN DRILLING BY 2020

Public joint-stock company Ukrgazvydobuvannia seeks to invest $3 billion to purchase and modernize drilling rigs by 2020, as well as to attract external contractors to carry out the works at the company's fields, Ukrgazvydobuvannia Head Oleh Prokhorenko has said.

"We assess drilling at $3 billion by 2020. This includes modernization of equipment and works", he said.

Prokhorenko said that the program included acquisition of 30 new drilling rigs (by 2020), modernization of 32 existing rigs (in 2016-2018) and drilling of around 660 new wells (71 wells in 2016, 88 wells in 2017, 131 wells in 2018, 166 wells in 2019 and 201 wells in 2020). The company intends to attract 15 rigs of international contractors in 2017.

"The task is to expand our fleet and the fleet of contractors. We will try to have 114 rigs in operation by 2020 and increase the speed of commercial drilling", he said, adding that Ukrgazvydobuvannia now drilled 297 meters per rig a month, while the figure of external contractors was around 900 meters per rig a month.

Prokhorenko believes that $3 billion of investment into the expansion of drilling in 2016-2020 is not a sky-high figure. He took $54 billion Ukraine sent to import Russian gas in 2009-2013 as an example.

He also said that investment of $500 million in outsourcing would help to drill 90 wells by 15 rigs and get an additional 3.3 billion of cubic meters of natural gas a year. This is a good figure for saving compared to purchases of imported gas.

He said that the company would conduct 3D seismic works on 17 fields with gross area of 1,500 square meters in coming years. (Interfax/Business World Magazine)

RUSSIA: CARGO TRAFFIC ON AZOV-DON RIVER BASIN UP IN JANUARY-OCTOBER 2016

As of November 1, cargo traffic within the Azov-Don Basin of Russia's inland water ways climbed by 14.4%, YoY, to 9.232 million tons, the Administration of Azov-Don Basin says.

In the reporting period, transportation of heavy fuel oil fell by 0.5% to 2.804 million tons; sulfur went up by 15.2% to 1.373 million tons; diesel fuel – by 30.2% to 1.193 million tons.

The number of vessel movements declined by 10.8%, YoY, to 5,400.

In October cargo traffic climbed by 29.2% to 1.344 million tons. Transit grew by 14.5% to 1.035 million tons, internal turnover surged 2.3 times to 309,000 tons. The increase is attributed to favorable hydro-meteorological conditions as compared with October 2015.

In October, Azov-Don Basin Authority registered 735 vessels including 373 sailing downward and 362 - upward (versus 984 in 2015: 502 sailing downward and 482 upward).

In October the depth in Tsymlyansky water storage basin was 33.23 m (Baltic System) while the normal depth is 36.0 m. At the section from the entrance to the 132-th channel to Kochetovsky waterworks the depth was 395 to 400 cm, from Kochetovsky to the 3121-th km stretch of the Don - 335 to 400 cm.

The total length of the waterways in the area of responsibility of the Azov-Don Basin Administration is 691.3 kilometers. (Portnews/Business World Magazine)

RUSSIA: ANNUAL CAPACITY OF SEAPORTS IN SAINT-PETERSBURG AND LENINGRAD REGION TO GROW

Annual capacity of seaports in Saint-Petersburg and the Leningrad region is to be increased to 395 million tons by 2030, up 3by 8% against the year of 2015.

The growth is foreseen by the strategy for the development of transport system in Saint-Petersburg and the Leningrad region presented.

Dry cargo capacity of the seaports is to grow 1.5 times to 168 million tons per year, liquid bulk cargo capacity - by 30% to 227 million tons per year. Annual throughput is expected to grow 1.5 times to 329.3 million tons including 73.1 tons of containerized cargo (up 3.5 times), 84 million tons of cargoes carried by ferries (up 14.5 times) and 4 million tons of Ro-Ro cargo (up 5.7 times).

Average time of cargo clearance and state control procedures at seaports is to be reduced from 90 to 40 minutes. (Portnews/Business World Magazine)

EUROPE: CLEAN SHIPPING DISCUSSED AT THE BALTIC STRATEGY FORUM IN STOCKHOLM

European and regional leaders met in Stockholm on November 8-9, at the 7th Strategy Forum to discuss the future of the Baltic Sea region, Baltic Ports Organization (BPO) said in its press release. Clean shipping and ports were some of the main topics at the event. BPO was there to present Baltic ports' achievements and the challenges faced by the sector in order to make the Baltic Sea cleaner.

The Strategy Forum is the most important yearly event for the EU Strategy for the Baltic Sea region (EUSBSR) hosted this year by Sweden together with the Nordic Council of Ministers. Over 1200 participants, featuring politicians and stakeholders from the private sector as well as representatives from national and regional governments, civil society, academia and media participated in more than 40 sessions.

Stefan Lofven, Prime Minister of Sweden, and Juha Sipila, Prime Minister of Finland, took part in the session "Vision 2030 for the Baltic Sea region". They both underlined the increasing traffic in the Baltic Sea and the necessity of actions required to make shipping in the Baltic more environmentally friendly and safe. Challenges related to climate change were also a key topic of their speeches.

Stefan Lofven said: "I believe that our region can provide an encouraging example to others on how to co-operate around the UN Agenda 2030. By cooperating we make sure that our region stays competitive, environmentally friendly and creates jobs for the future".

BPO attended the HELCOM seminar dedicated to the topic of fair allocation of duties regarding the protection of the Baltic Sea, which was a part of the main event. The seminar focused on the actions done so far to reach HELCOM targets in environmental protection and support needed to reach the agreed goals.

Bogdan Oldakowski, BPO Secretary General, said: "Baltic ports and shipping have its own role to play in making the Baltic Sea cleaner. There are a number of regulations affecting maritime transport coming into effect in the next years. The implementation process of these regulations is sure to pose new challenges. We expect the administrations to take a more active stance in facilitating the dialogue between stakeholders in order to find effective solutions".

HELCOM is an intergovernmental organization made up of the nine Baltic Sea coastal countries and the European Union. Founded in 1974, its primary aims as a governing body are to protect the marine environment of the Baltic Sea from all sources of pollution, as well as to ensure safe maritime navigation.

BPO has an observer status in HELCOM and takes part in the decision making process in the HELCOM Maritime Working Group. (Portnews/Business World Magazine)

FINLAND: FINNLINES GROUP FINANCIAL RESULTS FOR JANUARY-SEPTEMBER 2016

Finnlines Group's January-September result for the period, EUR 60.9 million, was about EUR 20 million better than in the corresponding period last year, the company said in its press release.

The lower bunker consumption and also lower operative costs have contributed positively to the result as the share of inexpensive heavy fuel oil in Finnlines traffic is greater than in 2015 due to the scrubber installations.

However, rising oil prices means that a careful control of bunker consumption and purchase prices will be even more important in order to secure a continued efficiency gains in costs.

Regardless of the sluggish growth in Europe, Finnlines exceeded last year's record-breaking result by outstanding 48.1%. This extraordinary result achievement combined with lower capital expenditures lead to an improved cash flow over the previous year, which enabled to reduce the group's debt markedly.

The interest bearing debt decreased by EUR 80.0 million and amounted to EUR 481.4 (561.4) million. The gearing improved to 77.5% (106.0) and the group's equity ratio stands now at a solid 50.2% level. The group's liquidity is outstanding, cash and deposits together with unused committed credit facilities amounted to EUR 172.2 (92.4) million. (Portnews/Business World Magazine)

BELARUS: GOMSELMASH SENDS DRAFT LICENSING AGREEMENT TO PAKSAN

A draft licensing agreement to set up a joint venture to assemble forage harvesters KSK-600 has been sent to the company Paksan, spokesman for the Belarusian Industry Ministry Vladimir Podolyak reported.

He noted that the project to establish a joint venture to assemble forage harvesters KSK-600 was discussed during the visit of a Paksan representative to the Belarusian mechanical engineering company Gomselmash in September. The Turkish delegation said that they had a 15,000-square-meter facility to house a venture to assemble harvesters.

"The Turkish side is currently considering a draft of the relevant agreement", Vladimir Podolyak said.

Once the licensing agreement is concluded, the sides will draft a division sheet for the first stage of the joint assembly project.

Gomselmash and Paksan signed the agreement to establish a joint venture to assemble forage harvesters during the official visit of a Belarusian government delegation led by Prime Minister Andrei Kobyakov to Turkey in November 2015.

Paksan put forward an idea to organize supplies of ready-made self-propelled forage harvesters KSK-600 to Turkey at the initial stage of the implementation of the agreement. The agreement between Gomselmash and Paksan provides for the delivery of five forage harvesters KSK-600-10 to the total tune of $300,000. Two vehicles have been shipped so far. The remaining three will be delivered to Turkey in November-December.

Vladimir Podolyak noted that Belarus also sold metal products and machine tools to Turkey. For instance, Belarusian Steel Works exported almost 15,500 tons of metal products worth $8.5 million to this country in January-October.

Belarus' machine-tool plant Krasny Borets has been cooperating with its Turkish distributor Adil Makina since 1995. In October the company took part in the engineering expo MAKTEK Eurasia in Istanbul. Krasny Borets exported eleven machine tools worth $259,000 to Turkey in January-October. The enterprise will supply another four pieces of equipment worth $129,200 in November.

Besides, the Belarusian automobile engineering company BelAZ has plans to take part in the expo Mining Turkey 2016 together with its partner, Swiss company Premar Service AG. The expo will run in Istanbul from on November 24-27.

"Such Belarusian enterprises as MTZ, BelAZ, MAZ and Amkodor are working hard to promote their products on the Turkish market", Vladimir Podolyak added. (BelTA/Business World Magazine)

UKRAINE: GOVERNMENT APPROVES OF REFERENCE PRICES FOR MEDICINE FROM JANUARY 1, 2017

Ukraine's Cabinet of Ministers has approved of a resolution introducing reference prices for medicine to treat cardiovascular diseases, diabetes and bronchial asthma from January 1, 2017 and launching the reimbursement program for them from April 1, 2017.

"Our decisions would help to halve prices of medicines, and refund expenses to patients with chronical diseases - asthma and diabetes", Ukrainian Prime Minister Volodymyr Groysman said.

He said that the government would toughly react to attempts of hindering this reform by the pharmaceutical sector.

"If someone plays with Ukrainian citizens in the shortage of medicines, I would not chase everyone. I would find one - the largest one - and make so that he would feel that he must have respect for Ukrainian citizens. We have various tools for this", he said. (Interfax/Business World Magazine)

UKRAINE: GOVERNMENT TO CREATE TRUNK GAS PIPELINES

Ukraine's Cabinet of Ministers has decided to create public joint-stock company Trunk Gas Pipelines of Ukraine within division of the national joint-stock company Naftogaz Ukrainy in types of operations.

The government also decided that an attic of a nonresidential building at 3A, Honty Street in Kyiv worth 3.786 million UAH would be transferred to the newly created company.

Thus, the company's charter capital has been formed.

In addition, the government decided to change the term of trunk gas pipelines management reform.

"The decision has been discussed out by a working group for a long time. All members of the group consisting of representatives of IFIs (international financial institutions), Energy Community and the European Union gave their consent. This is a consolidated decision to revise the terms, as we had a delay", Deputy Prime Minister Volodymyr Kistion said. (Interfax/Business World Magazine)

BELARUS TO EXPORT $2.1 BILLION WORTH OF AGRICULTURAL PRODUCTS IN 2016

Belarus plans to supply agricultural products on foreign markets valued at $2.1 billion in the current year, the Head of the Main department of foreign economic activity at the Ministry of Agriculture and Food Alexei Bogdanov declared.

During 10 months the export dynamics demonstrated very good results. In monetary terms, the exports reached 99.3% compared with the last year level, or nearly $1.9 billion. In natural terms Belarus increased the export volumes of meat by 17%, dairy products – by 4%.

Bogdanov said that the work with African and Asian markets showed good results. On October 5, the agreement on free trade zone between the Eurasian Economic Community (EAEC) and Vietnam started working. Belarus started supplying meat to Kenya and Niger, etc. (APK-Inform/Business World Magazine)

POLAND: PORT OF GDANSK TO RECEIVE EUR 30 FOR LAND ACCESS INFRASTRUCTURE

The next 4.5 years will be marked by intensive investment work for the Port of Gdansk Authority SA, the company said in its press release.

As part of the Connecting Europe Facility (CEF), the Port of Gdansk Authority SA also received funding for the preparation of project and environmental documentation for the expansion and modernization of core network hubs in terms of road and railway infrastructure on the right bank of the Inner Port (the area of Basen Gorniczy and nabrzeze Przemyslowe). The project in question will be carried out in cooperation with the Gdansk Municipality based on a cooperation agreement concluded between the two parties.

Ultimately, the undertaking will result in the preparation of project documentation, i.e. the construction design and the detailed design, based on which the PGA SA will apply for building permission. The documentation will be prepared concurrently by the Port of Gdansk and the Gdansk Municipality in relation to the infrastructure administered by each party. PGA SA expects to select a contractor to prepare the documentation by the end of this year. Completing the documentation and obtaining building permission is planned for March 2018.

Project documentation developed by PGA SA will include road and railway infrastructure at the Port of Gdansk in the area of Basen Gorniczy and nabrzeze Przemyslowe, including transport lines and technical routes for the handling of contracting partners and the adjacent quays in both areas.

The investment will involve the preparation of documentation for the possible change of location of the route at nabrzeze Weglowe and moving it to the second quay line. A modification of the railway system and of the number of tracks in the area of nabrzeze Rudowe and nabrzeze Weglowe is also planned. Right next to that area, near the present Dworzec Drzewny, a new railway system will be designed, opposite in relation to the existing one. The design of a system parallel to the quay is therefore planned, in place of the current perpendicular one. In the second line of nabrzeze Przemyslowe, a new road and railway network will be designed in order to improve access to the area, including technical transport used on the port's internal roads in this area. The planned load capacity on the technical routes and transport lines within the internal areas of the port covered by the project will exceed 115 kN/axle. This means that the internal roads in this area of the port will be suited to oversize and overweight load vehicle transport.

Parallel to the port's design work, the Gdansk Municipality will be carrying out its own projects, focusing mainly on the municipal road system including ulica Ku Ujsciu, Kujawska, and Chemikow, with exits to adjacent areas. The entire project documentation will also include the improvement of the streets' load capacities and geometric parameters.

All of the designs will be correlated at contact points with the PKP PLK S.A. project, involving the modernization of the stations serving the Port of Gdansk in this area, i.e. the Gdansk Port Polnocny and Gdansk Kanal Kaszubski.

The undertakings described above comprise a huge investment program by the Port of Gdansk Authority SA, which will make it possible to complete the long-term complex process of improving key access road and railway infrastructure at the Port of Gdansk by 2020. Thus, the port will gain a completely new face, which will undoubtedly contribute to enhancing the image of the port as the country's key logistics hub and improve its access and the quality of handling land traffic at the port, which will also translate into increasing its competitiveness on the market.

The undertakings planned for the forthcoming period, both the design-related ones at the Inner Port and the construction-related ones, such as the expansion and modernisation of road and railway infrastructure at the Outer Port will amount to EUR 30 million, out of which nearly EUR 25 million will be sourced from EU grants. (Portnews/Business World Magazine)

BELARUS: KRASNOSELSKSTOIMATERIALY GETS BR2 MILLION NON-REFUNDABLE SUBSIDY TO PRODUCE EQUIPMENT

Belarus' Energy Ministry will provide Br 2 million ($1.05 million) to OAO Krasnoselskstoimaterialy (Grodno region, one of Belarus' largest manufacturers of construction materials) as a non-refundable subsidy to purchase relevant technological equipment for a cement clinker producing facility.

The government adopted a resolution to this effect on November 4. (Prime-TASS/Business World Magazine)

RUSSIA: LUKOIL PRODUCES 2-BILLION TON OF OIL SINCE

LUKOIL has produced the 2-billionth ton of oil since its foundation in 1991 to become the first Russian oil company to pass this milestone.

It took LUKOIL 15 years to produce its first billion tons of oil in 2006, while the second billion followed up only in 10 years. The increased pace of production resulted from investments made by the company in expanding the geography of its upstream projects and improving its production performance. Over the past few years LUKOIL put on stream several fields in the new petroleum province on the North Caspian shelf, increased its production capacities in the Perm region, Republic of Komi and Yamal-Nenets Autonomous District as well as expanded its international presence.

The development of modern technology to increase the oil recovery factor has played an important role in the production growth achieved by LUKOIL. The company has successfully delivered projects, which were unique in their complexity, such as Yaregskoye field of ultraviscous oil.

In 2016 LUKOIL put on stream two flagship upstream projects. One of them is Vladimir Filanovsky, the largest field on the Caspian Sea shelf with recoverable reserves, according to the Russian classification, exceeding 129 million tons of oil and 30 billion cubic meters of gas. Commercial production also began at the unique Pyakyakhinskoye field in Yamal which contains 86 million tons of oil and gas condensate and 253 billion cubic meters of gas. (Energyland/Business World Magazine)

MONGOLIA INTERESTED IN ACCESSION TO EEU

The Eurasian Economic Union (EEU) is of great interest for Mongolia, the country's Ambassador to Russia Banzragch Delgermaa reported.

"As you know, the process of integration and establishment of regional blocs is underway in the world, and that is why Mongolia, located between such powerful states as Russia and China, and without access to the sea, is glad to join some economic blocs and work effectively. In this regard, the Eurasian Economic Union is of great interest for us", she said. (Prime-TASS/Business World Magazine)

RUSSIA: NAVIGATION WITHIN WATER AREA OF BIG PORT ST. PETERSBURG PROHIBITED FOR SMALL-SIZE, LEISURE AND SPORT VESSELS

Navigation within water area of Big Port St. Petersburg is banned for small-size ships, leisure and sport vessels from November 14, according to the Order of Harbour Master Aleksandr Vokov.

The decision was made amid deterioration of weather conditions, subzero temperatures and ice formation in the water area of Big Port St. Petersburg. (Portnews/Business World Magazine)

RUSSIA: OVER 32 THOUSAND TONS OF GRAINS TO THE INTERVENTION FUND PURCHASED

On November 9, National Mercantile Exchange CJSC (NAMEX) held the regular stock exchange trading within frames of public grain purchasing interventions in the regional trading platforms of Russia, and purchased 32.4 thousand tons of grains (from the proposed volume of 33.75 thousand tons) valued at 305.809 million rubles, the press-service of NAMEX declared.

In particular, the fund purchased 24.3 thousand tons of 4-grade wheat (whole proposed volumes), 6.75 thousand tons of 5-grade wheat (from the proposed volume of 8.1 thousand tons), and 1.35 thousand tons of 1-group barley (whole proposed volumes).

The weighted average prices of the grains sold to the intervention fund were as follows: 3-grade wheat – 10’521.3 rubles/ton; 4-grade wheat – 9’730.6 rubles/ton; 5-grade wheat – 8’220.3 rubles/ton; 1-group barley – 7’869.2 rubles/ton.

Since the beginning of the purchasing auction (September 19), the intervention fund at NAMEX exchange site already purchased 686.61 thousand tons of grains valued at 6.541 billion rubles. (APK-Inform/Business World Magazine)

POLAND SEEKING CLOSER COOPERATION WITH BELARUS IN AGRICULTURE

Poland intends to strengthen cooperation with Belarus in the agricultural sector, Ambassador Extraordinary and Plenipotentiary of Poland to Belarus Konrad Pawlik reported.

"Thanks to its EU membership, Poland got access to more efficient up-to-date production technologies. We are ready to share our experience with Belarusian counterparts and strengthen cooperation in the agricultural sector", Konrad Pawlik said.

The Ambassador emphasized the growth in supplies of agricultural goods and food products between Poland and Belarus.

"The recent visit of Deputy Prime Minister and Minister of Economic Development and Finance of Poland Mateusz Morawiecki to Minsk proves gradual normalization of relations between our countries", the diplomat stressed.

In October Minsk hosted the economic forum Good Neighborliness, which gathered nearly 500 businessmen from Belarus and Poland.

According to Konrad Pawlik, Poland is implementing in Belarus its program Flavors of Europe - Quality and Tradition that is aimed at the popularization of European food products. The program is financed by the European Union and Poland. The project will promote the trade between the two countries and attract mutually beneficial investment. (BelTA/Business World Magazine)

RUSSIA: RUBLE DEVALUATION DEVELOPS THE GROWTH OF GRAIN EXPORTS

The devaluation rates of ruble contributed to strengthening of the Russian positions as the leading global exporter of grains, the President of the Russian Grain Union Arkady Zlochevsky declared.

According to him, previously Russia lost the major markets to French and Romanian exporters - Turkey and Egypt, but after the fall of ruble exchange rates, Russia started conquering the markets.

At the same time, the export trading from the Far Eastern ports remains unprofitable even in such circumstances, and requires a certain public support. Zlochevsky said that Russia had to construct terminals for grain exports in the Far Eastern District.

He named cancellation of the preferential treatment for rail transportation of grains, when the sender received 50% discount for transportation for a distance of over 1 thousand km, as one of the major reasons for such trend development.

Every year the Grain Union received such discount, and to date the preferential treatment is closed due to the Eurasian Economic Union. As a result, due to transportation costs, Russian grain exporters have uncompetitive prices in the Far Eastern direction. (APK-Inform/Business World Magazine)

RUSSIA: DOMESTIC MARKET STRENGTHENS DEMAND FOR RAPESEED PRODUCTS

Rapeseed oil exports totaled 26.8 KMT in September 2016/2017, or double the volume exported in the previous month (13.1 KMT).

At the same time, rapeseed oil shipments to foreign markets shrank by 1.9 KMT (6.6%) against September 2015/2016.

Key users of rapeseed oil are Norway with an export share of 65%, Lithuania with 14%, and Latvia with 12%. At the same time, insignificant parcels were shipped to Moldova and Germany.

Downward trend appears in rapeseed product export availabilities in 2016/2017 due to strengthening domestic demand for processed oilseed products. (UkrAgroConsult/Business World Magazine)

RUSSIA: AGRICULTURE MINISTRY LOWERS THIS AGRICULTURAL YEAR'S GRAIN EXPORTS FORECAST

The Russian Agriculture Ministry has lowered the forecast for grain exports for the current agricultural year by 5 million tons - to 35 million tons and wheat exports by 2 million tons to 28 million tons.

"The export geography of Russian grain and its products now covers more than 100 countries over the past 5 years, exports increased by an average of 30-40%. The forecast of the Russian Ministry of Agriculture for grain export in 2016-2017 agricultural year reaches up to 35 million tons, including 28 million tons of wheat", the ministry said.

Earlier, the ministry forecast that Russia would export 40 million tons of grain this agricultural year, including 30 million tons of wheat. (World-Grain/Business World Magazine)

RUSSIA: OIL OUTPUT TO EXCEED 544 MILLION TONS IN 2016

Russia's oil and gas condensate output may exceed 544 million tons in 2016, Deputy Energy Minister Kirill Molodtsov said.

Daily output is stable at 11.52 million barrels, he said.

"Companies continue to increase production. We have crossed the mark of 11 million barrels and we are currently stable at 11.52 million barrels. We assume that output will exceed 544 million tons this year", Molodtsov said.

In 2015, Russia's oil output rose by 1.4% to 534.081 million tons. (Prime/Business World Magazine)

RUSSIA: MEGAFON IFRS NET PROFIT HALVED Q3 2016

The net profit of Russian mobile operator MegaFon decreased by 52.3% YoY to 6.346 billion rubles in July-September, as calculated under International Financial Reporting Standards (IFRS), the company said in a report.

Consolidated revenue decreased by 0.2% to 81.115 billion rubles. Revenue from wireless data services increased by 0.5% to 21.734 billion rubles.

Operating income before depreciation and amortization (OIBDA) plunged by 10.7% to 32.285 billion rubles. OIBDA margin slipped by 4.7% YoY to 39.8%.

Capital expenditures decreased by 55% to 11.671 billion rubles.

"In the third quarter, the Russian telecommunications industry continued to experience tough market conditions caused by increased competition and changes in consumer demand. Given these circumstances we were comfortable with the relatively insignificant 0.2% decrease YoY in total consolidated revenue", MegaFon CEO Sergei Soldatenkov said.

"We see the continued trend of a shift in our revenue structure towards an increasing share of revenue from sales of equipment. However, we expect these increased sales of equipment to translate into greater demand for mobile data services in the future".

In January-September, the net profit fell by 33.5% YoY to 22.417 billion rubles. Consolidated revenue increased by 1.5% to 234.988 billion rubles. Revenue from wireless data services increased by 7% to 63.069 billion rubles.

OIBDA decreased by 10.5% to 92.086 billion rubles. OIBDA margin contracted by 5.2% to 39.2%.

Capital expenditures fell by 16.5% to 38.862 billion rubles.

MegaFon's net debt was at 190.207 billion rubles as of September 30.

The number of mobile subscribers grew by 1.8% to 77.3 million as of the end of September. (Prime/Business World Magazine)

RUSSIA: OVER 120 MILLION TONS OF GRAINS HARVESTED

As of November 8, Russian agrarians continued harvesting grains and pulses. Agrarians harvested grain crops throughout the general areas of 45 million ha (on the same date in 2015 - 43.8 million ha), or 95.3% of the planned areas. The produced volumes reached 120.3 million tons of grains, with the average yield of 2.68 ton/ha (in 2015 - 106.9 million tons with the yield of 2.44 ton/ha), the Ministry of Agriculture of the Russian Federation reported.

In particular, agrarians harvested winter and spring wheat throughout 27.2 million ha (98.1% of the plan). The produced volumes reached 75.8 million tons, with the yield of 2.79 ton/ha.

Russia harvested 19.1 million tons of winter and spring barley throughout 8.1 million ha (97%). The average yield totaled 2.35 ton/ha.

Agrarians harvested corn for grain throughout 1.9 million ha (64.1%), and produced 10.5 million tons of the grain, with the average yield at 5.64 ton/ha.

Russia harvested 1.2 million tons of rice throughout 187.2 thousand ha (90.8%). The average yield totaled 6.61 ton/ha.

Russian agrarians continued the sunflower seed harvesting campaign. Agrarians harvested 10.1 million tons of the oilseed throughout 6.4 million ha (85.7%). The average yield totaled 1.58 ton/ha.

Also, Russia harvested rapeseed throughout 889.7 thousand ha (89.4%), and produced 1.1 million tons of the oilseed, with the average yield of 1.21 ton/ha.

Agrarians continued harvesting soybeans: the harvested areas reached 1.9 million ha (89.1%), the produced volumes - 3 million tons, the average yield - 1.55 ton/ha.

As of November 8, Russian agrarians planted winter crops for the harvest-2017 throughout 17.1 million ha, or 98.8% of the planned areas (in 2015 - 15.8 million ha). (APK-Inform/Business World Magazine)

RUSSIA NOT TO AUCTION ERGINSKOYE OILFIELD IN 2016

The Russian government will not be able to auction the Erginskoye oilfield located in the Barents Sea, a source familiar with the matter reported.

"This is one of the few large fields that were left. It can be announced, but there is no time to hold it", the person said.

The field's recoverable reserves of oil amount to 18.842 million tons under the C1 category and to 83.877 million tons under the C2 category. Initially, the government planned to auction the right to develop the field for 5.35 billion rubles in early 2016, but the Natural Resources and Environment Ministry introduced the requirement of attracting foreign partners for development of the field.

After that, some media reported that oil major Rosneft's CEO Igor Sechin asked President Vladimir Putin to abolish the request. In August, the ministry scrapped the requirement, but it is yet to announce the date of a new auction. (Prime/Business World Magazine)

RUSSIA TO INCREASE THE SUPPLIES OF GRAINS TO THE ASIA-PACIFIC REGION

Putting into operation of new agricultural lands in Siberia and the Far Eastern District allows Russia not only to increase the production of grain crops in the reporting regions, but also to significantly increase the export volumes to the Asian markets, the Minister of Agriculture of the Russian Federation Alexander Tkachev declared.

Reclamation of new lands in Siberia and the Far East will increase the grain harvest volumes in the regions to 25 million tons, and provide nearly 10 million tons annually to the prospective Asian markets, the minister said.

At the same time, he reminded that to date, the reporting regions produced nearly 15 million tons of grains per year, which allowed covering only domestic needs.

As for grain exports to Asian countries, Tkachev stressed the significant potential of grain supplies to the Asia-Pacific region, which last season imported nearly 23 million tons of grain crops.

According to experts, the need of Asia-Pacific countries in grains will continue increasing due to the population growth and greater consumption of meat products. Therefore, Russia plans to intensively work in order to meet the growing needs of the region. (APK-Inform/Business World Magazine)

RUSSIA TO RETAIN GLOBAL LEADERSHIP AS WHEAT EXPORTER DURING CURRENT FARMING YEAR

Russia will remain the world's biggest wheat exporter in the current farming year (July 1, 2016 - June 30, 2017), Russian Minister of Agriculture Alexander Tkachev said.

"Russia's overall grain harvest in 2016 will exceed 117 million tons. According to our forecasts, as many as 35 million tons will be exported. Notably, Russia will retain global leadership in exporting wheat and will outstrip such exporters as the European Union and the United States", he said.

Earlier, Russia's Ministry of Agriculture downgraded grain export forecasts for this farming year by five million tons, to 35 million tons.

In 2015, Russia's grain harvest was 104.8 million tons, of which 33.9 million tons were exported.

The biggest-ever harvest of 108.1 million tons was reported in Russia in 2008. (TASS/Business World Magazine)

RUSSIA: CBANK TO ISSUE BONDS IN EARLY 2017

The Russian central bank is technically ready to start issuing bonds but economic conditions can become favorable only at the beginning of 2017, Igor Dmitriyev, head of the monetary and credit policies department, reported.

"The first slight liquidity surplus occurred on Monday, structural surplus. It can remain unstable until the end of the year but some time from January it will become sustainable and economic preconditions to issue OBRs should be created", Dmitriyev said.

Monday's structural liquidity surplus amounted to 26 billion rubles.

First Deputy Chairwoman Ksenia Yudayeva said then that the start of OBR issuance would require legislative changes. (Prime/Business World Magazine)

RUSSIA: MEMO TO IDENTIFY FANS AT 2017-2018 MATCHES INKED WITH FIFA

Russia has signed a memorandum of understanding with the International Federation of Association Football (FIFA) to apply a fan identification system during the 2017 Confederations Cup and the 2018 World Cup, which the country hosts, the Communications and Mass Media Ministry said in a statement.

"The Communications and Mass Media Ministry and the Sport Ministry, jointly with colleagues from other authorities, have been preparing a launch of the system of fan passports and discussed conditions of its application with FIFA since last year", Communications Minister Nikolai Nikiforov said.

"Our task is to make receipt and use of a fan passport quick and comfortable. The creation of the system is aimed at improving the security level during the World Cup for all its participants and viewers".

In order to receive a fan passport, a person should buy a ticket to a match and get registered on a specially launched Web site www.fan-id.ru. Documents will be handed over in cities hosting the soccer events. Foreign visitors will get fan passports by mail and will be able to come to Russia without a visa. The documents should be presented along with tickets to enter stadiums.

Up to 3 million of fan passports for Russians and foreign guests will be issued.

The FIFA World Cup will be held on June 14 - July 15, 2018 on 12 stadiums in 11 cities scattered across the country, including Moscow and St. Petersburg. (Prime/Business World Magazine)

RUSSIA: OPERATORS' INTERNATIONAL ROAMING INCOME TO FALL IN 2016

Incomes of Russian mobile operators from international roaming could shrink by 13% in 2016 to 17.3 billion rubles, analytical agency TMT Consulting said in a research.

"In the conditions of low dynamics of the mobile connection market, the processes unfolding in the segment of international roaming have started exerting significant influence on results of work of Russian cell operators. Revenue from international roaming has been decreasing over the last four years with the deepest decline seen in 2015 by 23% to 19.9 billion rubles", the agency said.

The main reason behind the decrease is a falling flow of outbound tourism, which fell by 13% in January-June and could plunge by 20-30% for the whole 2016.

Another reason is a changing model of service consumption.

"A refusal from traditional voice communication in favor of messengers and social networks cuts voice traffic by 20-30% in comparison to 2015", the research read.

Internet traffic soars thanks to new tariff options offered by operators and an increasing popularity of mobile data transfer.

"Meanwhile, the growth of natural indicators of mobile Internet consumption does not offset the decrease of voice revenue, because of, among others, a total fall in outbound tourism, which leads to lower incomes from international roaming", the agency said.

In the future, a possible increase of roaming prices in Europe following a rise in prime costs of the service for operators will most likely reduce volumes of its consumption and push tourists to start using alternative channels of connection. In such a way, further dynamics of incomes from international roaming will be primarily determined by the macroeconomic situation in the Russian Federation. (Prime/Business World Magazine)

RUSSIA: RAILWAYS AND YINGKOU PORT GROUP CORPORATION AGREE ON JOINT DEVELOPMENT OF BELY RAST LOGISTICS CENTER

Russian Railways says its president Oleg Belozerov and the CEO of China Yingkou Port Group Corporation Lee Hechzhun have signed a cooperation agreement in St. Petersburg.

The document was signed during a meeting between the heads of government of the Russian Federation and the People's Republic of China.

The agreement was included in the development of a Memorandum of Understanding dated September 3, 2015.

The two sides regard each other as strategic partners and have expressed an interest in establishing a basis for cooperation on the joint development and management of logistics centers and international multimodal transportation.

Under the agreement, the parties will contribute to the active implementation of the project to create an international terminal and logistics center (TLC) on the basis of TLC Bely Rast LLC.

To achieve this, it is envisaged that China Yingkou Port Group Corporation will acquire 49% of the share capital of TLC Bely Rast LLC on the basis of an open competition.

According to the parties, the agreement is a further step towards the creation of an efficient international transport and logistics corridor, an increase in freight flows between China and Russia and the rest of Europe, a rise in productivity and greater efficiency of the companies engaged in international transport and logistics projects, as well as cross-border e-commerce to create new business opportunities and the joint development and exploitation of the market potential in Europe and Asia.

The project to develop the railway infrastructure of the Bely Rast station and terminal and logistics center is being implemented in accordance with the "Railway Transport Development Strategy in the Russian Federation to 2030," which was approved by the Russian government in decree on July 17, 2008 and by Moscow city government on November 18, 2008 on the General Development Plan of the Moscow railway hub.

The aim of this project is to create a network of terminal and logistics centers and meet transportation needs, as well as to deliver terminal, logistics and associated services.

Razvitie TLC LLC, whose sole shareholder is Russian Railways, currently owns 100% of Bely Rast LLC. (Portnews/Business World Magazine)

SLOVAKIA: SIGNIFICANT POTENTIAL EXISTS FOR CONNECTING EASTRING TO SGC

There is significant potential for the delivery of gas via the Southern Gas Corridor to Europe through the Eastring gas pipeline, Public Relations and Communication specialist at Slovakia's Eustream company Pavol Kubik reported.

The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region to the European countries through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor project. Other sources can also join this project at a later stage.

As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of TANAP and TAP.

Eastring has obtained the status of the Project of Common Interest (PCI) for the European Union. It will be ready for future gas imports to Europe from well-established, alternative sources - the Caspian Sea region and the Middle East.

Bulgarian and Slovak natural gas transmission system operators Bulgartransgaz and Eustream signed a memorandum of understanding on November 4, on cooperation to improve security of natural gas deliveries in Central and Southeastern Europe and the implementation of gas infrastructure projects, namely Balkan Gas Hub and Eastring gas pipeline.

This document confirms the link between the two projects, as Bulgartransgaz and Eustream will draft a concept for the development of a gas hub in Bulgaria in accordance with the Eastring project.

"Eastring project is not linked to any supplier. Therefore, it will be open for every source on the non-discriminatory basis in full compliance with EU legislation. In this context, we believe there is a significant potential towards Caspian region and Southern Gas Corridor route", Kubik said.

Regarding the link between Balkan gas hub and Eastring, he said that the common aim of both projects was to provide European customers with transparent and non-discriminatory access to a wide range of supply sources and therefore both companies recognized synergies of the projects.

"The synergy with Eastring lays in the fact, that both companies agreed the Eastring pipeline would serve as a priority western route for the interconnection of the regional markets and the Balkan Gas Hub (the new gas hub needs to be connected to sufficient infrastructure)", Kubik added. (Trend/Business World Magazine)

MOLDOVA: TRADE WITH RUSSIA DOWN IN JANUARY-SEPTEMBER 2016

Trade turnover between Russia and Moldova decreased by $126.8 million (-13.9%), to $ 788.1 million in January-September.

According to the Customs Service of the Russian Federation, the supply of Moldovan goods to Russia over 9 months increased by 16.1% YoY, from $134.6 million to $156.3 million, and the supplies of Russian products to Moldova decreased by 19%, from $780.3 million to $631.8 million.

The negative trade balance of Moldova with Russia in January-September amounted to $475.5 million, down by 26.4% YoY ($645.7 million).

Trade turnover between Russia and Moldova in 2015 amounted to $1222.2 million, down by 32% YoY, or by $574.2 million. At the same time, the export of Moldovan goods to Russia decreased 1.7 times YoY, to $185.8 million, while the imports of Russian products to Moldova decreased by 30%, to $1036.4 million. The negative trade balance of Moldova with Russia in 2015 amounted to $850.6 million, down by 26.9% YoY. The share of Moldova in the total volume of Russian trade turnover remained at 0.2% in 2015. (InfoMarket/Business World Magazine)

RUSSIA: URALKALI'S ANNUAL REPORT NAMED BEST ANNUAL REPORT OF THE INDUSTRIAL SECTOR

Uralkali has won the 19th Annual Report Competition organized by the Moscow Stock Exchange and RCB media group in the "Best annual report from the industrial sector" category.

This competition is the main platform for the presentation of annual reports, the assessment of which is traditionally conducted by leading experts from the financial industry. It promotes openness, develops corporate culture and improves business reputation of companies operating in Russia.

The company has also become prizewinner in the "Best design and navigation of the corporate website" category.

Uralkali is one of the world's largest potash producers and exporters. The company's assets consist of 5 mines and 7 ore-treatment mills situated in the towns of Berezniki and Solikamsk (Perm territory, Russia). Uralkali employs ca. 11,000 people (in the main production unit). Uralkali's shares are traded on the Moscow Exchange. (Uralkali/Business World Magazine)

ROMANIA: BARLEY EXPORTS DOWN IN AUGUST 2016

In the second month of 2016/2017 MY the pace of Romanian barley exports steeply decreased, compared to last season and to the 5-year average for this month. The volume exported was 76.5 KMT (217.3 KMT in August 2015/2016; 280.3 KMT – 5-year average).

Thus, since the beginning of 2016/2017 (July-August) Romania exported 537 KMT of barley according to the statistics data, down by 29% YoY (757 KMT).

Key buyers in August were Algeria (35% of the total August barley exports), Libya (19%), Saudi Arabia (17%) and for the first time - Vietnam (14%).

Over July-August 2016/2017 lower purchasing activity is seen from Jordan and UAE. (UkrAgroConsult/Business World Magazine)

RUSSIA: WB IMPROVES 2016 GDP OUTLOOK

The World Bank (WB) has improved its 2016 outlook for Russia's gross domestic product (GDP) to a 0.6% decline from 1.2%, it said in a report.

"In 2016, the economy is projected to contract by 0.6%, and grow by 1.5% in 2017 and by 1.7% in 2018, as hydrocarbon prices are forecast to continue recovering and positively affect domestic demand", the World Bank said.

The previous 2017 GDP forecast stood at 1.4%.

The estimate is based on a $55.2 per barrel oil price on average in 2017 and a $59.9 in 2018.

The bank said that this upsurge in economic growth would be unfavorable for diversification. The natural resource price volatility and structural limits will remain a threat to the Russian economy.

Russia's imports replacement policies have not affected economic growth and production factor redistribution significantly.

Russia's budget deficit is forecast at 4.2% of the GDP in 2016, 2.2% in 2017 and 0.6% in 2018, suppressed by spending reduction.

Inflation will amount to below 6% in 2016 and will reach the target of the Russian central bank of 4% in 2017. As a result, consumption will rise by 2% in 2017 and by 1.6% in 2018.

The poverty level, which is expected to be 13% in 2016, will fall to 12.2% in 2017 and 11.8% in 2018.

Chief Economist of WB Apurva Sanghi said at a press conference after the report release that Russia would be unable to escape the retirement age increase. (Prime/Business World Magazine)

UKRAINE: EFFECTIVE AIR TEMPERATURES NOT ENOUGH FOR SUCCESSFUL VEGETATION OF WINTER RAPESEED

During the last week of October average daily air temperature was 1-7 degrees lower than the norm with minimum lowered to -0.5 C in the Western regions during the night, and to -10 C in the Central, in the Southern and eastern regions - - 4-8 C. Soil surface cooled to -6-10 C. Precipitation of various intensity (0-24.3 mm) was seen all over the territory of the country.

During the autumn vegetation winter crops were well supplied with soil moisture, but lack of warmth was observed. Sum of effective temperatures higher than +5 C from the date of emergence (October 2) till the reporting date made up 57.4 C, active - 122.4 C, meaning that it did not increase compared to previous week. The required sum of temperatures from rapeseed emergence till passing the limit below +5 C should equal 200-225 C for successful wintering. (UkrAgroConsult/Business World Magazine)

UKRAINE: MINISTRY OF ECONOMIC DEVELOPMENT FORECASTS SLIGHT DECREASE OF AGRICULTURAL PRODUCTION

The Ministry of Economic Development and Trade of Ukraine forecast some decline in the general agricultural production in the country in 2016 - by 0.2% (+/- 0.3%) YoY, in terms of the positive dynamics in plant growing industry, and negative dynamics - in animal husbandry, the press-service of the ministry declared.

According to the announcement, in 2016 the dynamics in agricultural industry will form at the expense of the positive developments in plant growing industry caused by increasing of the planted areas of spring crops (grains - up by 4.8%, sugar beet - up by 22.4%, and sunflower - up by 18.9%). At the same time, the negative dynamics in animal husbandry will somewhat level down the trend, due to high production costs and the conditions for VAT special regimes, despite a slight recovery of the domestic consumer demand.

It is also noted that in January-August the agricultural industry showed a slowdown to 0.1% compared with the same period last year, against 0.5% in January-July. (APK-Inform/Business World Magazine)

KAZAKHSTAN: FLOUR EXPORTS UP IN 2015-2016

In 2015/2016 Kazakhstan exported 2157 KMT of flour, up by 27% YoY.

The key importer of the last season was Afghanistan, doubling purchases to 1174 KMT flour against 660 KMT in 2014/2015 and accounting for 54% in the total flour export structure against 39% in 2014/2015.

Uzbekistan also increased purchases but not essentially (+4%). Exports lowered in the destination of Tajikistan and totaled about 104 KMT against 169 KMT in 2014/2015.

Prospective market is China, where about 7.9 KMT was shipped (1.2 KMT was exported in 2014/2015). Considering higher wheat crop in 2016 analysts expect further growth of Kazakh flour export in 2016/2017, and higher exports to China are just what is needed. (UkrAgroConsult/Business World Magazine)

AZERBAIJAN TO ORGANIZE EXPORT MISSION TO EGYPT UNTIL YEAR-END

Azerbaijan plans to organize an export mission to Egypt in 2016, Rufat Mammadov, head of Azerbaijan Export and Investment Promotion Foundation (AZPROMO), reported.

Mammadov recalled that currently, the export mission of Azerbaijani entrepreneurs was in China, and the mission to Dubai, the UAE, would be organized until the end of 2016.

"Entrepreneurs, who will visit Egypt and Dubai, will present spheres of agriculture, processing, food industry, including the production of soft drinks", he noted.

Mammadov noted that during the visit, the entrepreneurs would hold negotiations with local companies to expand their export opportunities.

Trade turnover between Azerbaijan and Egypt amounted to about $4.5 million in January-September, $4.2 million of which accounted for import of Egyptian products, according to Azerbaijan's State Customs Committee. (Trend/Business World Magazine)

UKRAINE: GRAIN SEEDING PROGRESS AHEAD OF LAST YEAR

As of November 8, winter crops had been sown at 6844 thousand ha, or 93% of the forecast area - 7374 thousand ha.

This included 5836 thousand ha of winter wheat and triticale - 94% from the planned (5573 thousand ha in 2015), 157 thousand ha of rye - 106% (144 thousand ha in 2015), 851 thousand ha of barley - 83% (845 thousand ha in 2015).

Ukrainian farmers continue to harvest grains. (UkrAgroConsult/Business World Magazine)

UKRAINE: ASTARTA INTERIM REPORT FOR JANUARY-SEPTEMBER 2016

Revenues in the sugar segment of Astarta amounted to EUR 100 million (46% of consolidated revenues). Sugar sales volumes corrected by 11% to 237 thousand tons on the advancing market.

Almost 45 thousand tons of white sugar (19% of aggregate sales) was exported. Eight Astarta sugar plants had processed nearly 2 million tons of sugar beet and produced over 280 thousand tons of white sugar. By the end of the production campaign, the company intends to have processed over 3.2 million tons of sugar beet, around 70% of which grown by Astarta farms.

Revenues in the agricultural segment were EUR 43 million (20% of consolidated revenues), up by 20% YoY. The share of exports was traditionally high, amounting to 80% of the combined segment's sales. All grains and oilseeds except for corn and sugar beet (which are still being harvested) are collected.

Revenues in the soybean crushing segment reached EUR 53 million (25% of consolidated revenues, up by 36% YoY), fueled mostly by stronger sales volumes. Over the last nine months, Astarta sold 28 thousand tons of soybean oil (+42% YoY), 107 thousand tons of meal (+62%), and 6 thousand tons of husk (+105%). Soybean crushing products exports have been growing steadily to 115 thousand tons, almost 81% of the segment's sales.

Revenues from milk sales were EUR 17 million (8% of consolidated revenues, down by 5% YoY). The milk production at Astarta's dairy farms was 81 thousand tons, up by 4% YoY. In an environment of depressed milk prices, Astarta's focus in the segment was on growing dairy productivity and cost cutting. Thus the average productivity per cow improved by 7% while the headcount was reduced by 3%.

Comments of CEO Viktor Ivanchyk: "In the third quarter our focus was on several targets, including operational, commercial, and investment. Astarta posted a strong start to the new sugar production season and completed two investment projects on expansion of crop storage capacities. The company materially increased export sales. Our strong commitment to modern agri-technologies, cost control, and the training of personnel foster a solid foundation for further development of Astarta". (UkrAgroConsult/Business World Magazine)

AZERBAIJAN: BRITISH AIRWAYS CLOSES OFFICE

The UK's air carrier British Airways has closed down its representative office in Azerbaijan.

Creditors may submit their claims within two months to: Hyatt Tower-2, 8, Izmir Street, Yasamal district, Baku, Azerbaijan.

British Airways suspended flights on the London-Baku route and vice versa from May 1.

The last flight on the London-Baku-London route was implemented on April 29.

The company called the fall in demand and commercial inexpediency as a reason for the suspension of the London-Baku flight's execution.

British Airways carried out flights on the London-Baku-London route six times a week. (Trend/Business World Magazine)

MOLDOVA: GOVERNMENT ALLOWS OIL IMPORTS TO TRANSNISTRIA

On November 9, the government of Moldova approved of several changes to the ways of importing oil products through the Eastern border of the Republic of Moldova, in other words through the separatist region of Transnistria.

Thus, the Customs Office will allow until December 31, the imports of oil products coming through Novosavitskaya-Cuciurgan checkpoint and will document them at Bender 2 office. According to the press release of the government, the measure was requested by the economic agents that imported oil and lubricants through the separatist region.

Previously, Ukraine blocked the imports of oil products on railways to Transnistria.

The decision follows a discussion of authorities from Kyiv with the working groups from Chichinau and Tiraspol on railway transportation and customs problems. (Moldova.org/Business World Magazine)

ALBANIA: ANOTHER INNOVATION IN PROCESS OF TAP CONSTRUCTION

A modern technology called horizontal directional drilling (HDD) has been used for ensuring the crossing of the Trans-Adriatic Pipeline (TAP) through Albania's Seman river, which is another first for the country, said the message on TAP's website.

In November TAP began complex work for crossing an approximately 1.1 km stretch in the Albanian region of Fier, which hosted the Seman river, a railway as well as a road, said the message.

"Using horizontal directional drilling, the team avoided trenching, reduced excavation works to a minimum and limited impact on ecosystems. All in all, another first for Albania", said TAP.

Commenting on the issue, TAP project manager for Albania Karl Roberts said that the pipeline crossed 555 roads, 514 rivers and one railway in Albania alone and special engineering attention was paid to each crossing.

"TAP will continue to apply the highest industry standards and best practice, working safely and with care for the environment, cultural heritage and the communities along the pipeline route", he added.

Earlier, for the first time in Albania, TAP refurbished an access bridge using a structural strengthening method that allowed to maintain road traffic open.

TAP project envisages transportation of gas from the Stage 2 of development of Azerbaijan's Shah Deniz gas and condensate field to the EU countries.

The 870-kilometer pipeline will be connected to the Trans Anatolian Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy's south.

TAP's route through Albania will be approximately 215 km onshore and 37 km offshore in the Albanian section of the Adriatic Sea. It starts at Bilisht Qender in the Korca region at the Albanian border with Greece, and arrives at the Adriatic coast 17 km north-west of Fier, 400 meters inland from the shoreline. (Trend/Business World Magazine)

MALAYSIA TO STUDY PARTICIPATION IN TAPI CONSTRUCTION

The Malaysian government will study the possibility of its companies' participation in the construction of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, Prime Minister of Malaysia Najib Razak said.

Razak made the remarks following the negotiations with the President of Turkmenistan Gurbanguly Berdimuhamedov, who recently went to Kuala Lumpur on an official visit, according to the message.

Razak also stated about the readiness of Malaysian companies to participate in a number of projects for the construction of production facilities, development of the petrochemical industry and manufacturing of finished products in Turkmenistan.

Ashgabat is ready to provide certain volumes of gas in the TAPI pipeline on the swap scheme to foreign companies that produce gas on the Turkmen shelf after they enter the TAPI Pipeline Company Limited consortium.

Turkmenistan's Turkmengas State Concern was appointed the leader of the consortium in August of 2015.

Earlier, President of Turkmenistan Gurbanguly Berdimuhamedov offered the business circles of Qatar, Saudi Arabia, Germany and other countries to take part in the implementation of the TAPI project.

Turkmengas and Turkmenneftegazstroy state concerns have been constructing the Turkmen section of the TAPI since December 2015.

The capacity of the TAPI pipeline will be 33 billion cubic meters of gas per year, and its total length will amount to 1,814 kilometers. It is planned to commission the pipeline in December 2019. (Trend/Business World Magazine)

MOLDOVA TO INCREASE GRAIN EXPORTS THROUGH GIURGIULESTI PORT

The Moldavian company Trans Cargo Terminal LLC, a subsidiary company of the group Trans-Oil, will double its capacities of grain exports through the Giurgiulesti International Free Port, the Ministry of Economy of the Republic of Moldova declared.

Trans Cargo Terminal LLC completed its construction project of the terminal expansion for grain exports from the port.

The project turns Trans Cargo Terminal into the largest economic operator in the region, which has the loading capacities of more than 1 thousand tons of grains per hour for marine vessels, and 8 thousand tons per hour for river barges.

According to the announcement, in January-October 11 local companies exported over 60 thousand tons of grains through the Giurgiulesti port, mainly to Malaysia, Myanmar and Indonesia. (APK-Inform/Business World Magazine)

TURKEY: NEW APPOINTMENT AT PETKIM PETROCHEMICAL COMPLEX

New deputy director general on business support at Turkish petrochemical complex Petkim has been appointed, according to a message posted on the website of the Public Disclosure Platform.

Under the decision of the Board of Directors, Khalig Mustafayev has become the new deputy director general on business support.

It is the new position in Petkim's structure, according to the message.

Petkim produces plastic packages, fabrics, detergents, and is the sole Turkish manufacturer of such products, a quarter of which is exported.

Petkim shareholders are: SOCAR Turkey Petrokimya A.S. – 51%, SOCAR Turkey Energy - 1.32% and 47.68% - in free float. (Trend/Business World Magazine)

UKRAINE: AGRARIAN POLICY MINISTRY WANTS TO INTRODUCE POST OF AGRICULTURAL ATTACHES

The Agrarian Policy and Food Ministry of Ukraine suggests introducing the post of agricultural attaches, who will deal with the establishment of trade representations in the regions, which are of major interest for the exporters.

"Ukrainian agrarian sector provides today for 40% of export earnings of the country. In order to boost the export of Ukrainian agricultural products, it is necessary to systematize the state support for Ukrainian producers. For example, it can be the establishment of trade representations in the regions, which are of major interest for our exporters", Deputy Agrarian Policy and Food Minister of Ukraine on European Integration Olha Trofimtseva said.

According to her, the presence of agricultural attaches within such trade representations is a necessity, given the importance of agricultural trade for Ukraine. (Ukrinform/Business World Magazine)

UKRAINE: NUMBER OF UNPROFITABLE BANKS DOWN IN JANUARY-SEPTEMBER 2016

The number of unprofitable banks in Ukraine in January-September decreased to 35 out of 100 operating banks, while in 2015 loss was recorded at 41 banks, in 2014 - at 52 banks.

According to the website of the National Bank of Ukraine (NBU), the overall balanced loss in the banking system of the country in January-September amounted to 11.919 billion UAH, while the loss of operating banks stood at 11.625 billion UAH, insolvent banks - at 293.691 million UAH.

According to the NBU, the loss of banks from foreign banking groups amounted to 10.972 billion UAH, or 94.4% of operating banks' losses, that of banks from the first group was 90.428 million UAH, banks from the second group - 680.715 million UAH.

According to the NBU, the biggest loss in January-September was at VTB Bank (5.612 billion UAH), Prominvestbank (4.081 billion UAH), Sberbank (2.963 billion UAH) and Ukrsotsbank (2.771 billion UAH).

The largest profit among all the banks was at Raiffeisen Bank Aval (2.525 billion UAH), Citibank (1.11 billion UAH), and OTP Bank (874.190 billion UAH).

The number of operating banks as of October 1, amounted to 100 financial institutions. (Interfax/Business World Magazine)

EUROPE: OILSEED PRODUCTION ESTIMATES FOR BLACK SEA COUNTRIES

The forecasts for 2016/2017 oilseed production in Black Sea countries did not change substantially in the October USDA report.

The adjustments only concerned Russia. So, after another cut a month ago, the soybean output forecast for Russia was raised to 3 MMT (up by 300 KMT from the previous estimate).

Also, the USDA report presents increased soybean export estimates for the Black Sea region, specifically for Ukraine and Russia. The soybean export forecasts were boosted by 50 KMT both for Ukraine and Russia, to 2.35 MMT and 0.45 MMT, respectively. (UkrAgroConsult/Business World Magazine)

BELARUS: POLISH COMPANIES WANT BARRIERS TO TRADE REMOVED

Private business companies of Poland are looking forward to the removal of barriers to trade with Belarus.

Ryszard Zarudzki, Poland's First Deputy Minister of Agriculture and Rural Development, made a statement to this effect while presenting the program "Flavors of Europe: Quality and Traditions" on November 8.

In his words, Poland has been witnessing a recovery of business relations with Belarus in the sector of agriculture. Zarudzki says he had a meeting with Belarus' Deputy Minister of Agriculture and Foodstuffs Vladimir Grakun to discuss a strategy for further cooperation and the prospects of lifting barriers to full-fledged economic relations with Poland.

The parties discussed conditions for supplying mineral supplements to cattle fodder with mandatory veterinary certificates; restricted access to Belarus for Polish beef due to the necessity to produce a certificate on the absence of mad cow disease hazards, restrictions of pork supplies, Zarudzki informed.

In his words, Poland is a key supplier of foodstuffs in the European Union, while Belarus is the largest non-EU consumer of Polish foodstuffs. Poland has been supplying foodstuffs to Germany, Great Britain, France and Italy and would be ready to share its best practices and relevant technologies with Belarus, Zarudzki said.

At the same time, Polish businessmen, who want to cooperate with Belarus, find it important to have security guarantees for Polish investments in Belarus, Zarudzki said.

Poland's Ambassador to Belarus Konrad Pawlik accentuated the point that Poland was happy to seen accelerating turnover of agricultural products and foodstuffs with Belarus. In his words, Poland intends to strengthen cooperation with Belarus in the agricultural sector.

The trade turnover between Belarus and Poland grew by 10.6% YoY in January-August to $1.382 billion. Belarus' exports to Poland grew by 14% to $584.415 million, imports from Poland – by 8.2% to $796.864 million. Oil products accounted for around 25% of Belarus' exports to Poland in January-August - 400,600 tons (up 5.6 times YoY) worth $143.727 million (up 3.5 times). Apples and pears accounted for more than 28% of Belarus' imports from Poland in January-August - 431,000 tons (up 2.3 times) worth $225.561 million (up 2.2 times). (Prime-TASS/Business World Magazine)

ROMANIA: WINTER RAPESEED TO ENTER WINTER IN WELL-DEVELOPED CONDITION

Last week air temperature fluctuated within +5..+15 degrees C with maximum reaching +20 and minimum lowering to -2.

5-10 cm soil layer warmed to +4-14 C in the daytime.

Light rains were observed across the whole territory Romania (5-15 mm over the week). In the North-Eastern regions, where summer drought was severe, soil moisture stocks are at satisfactory and optimal level now. Good moistening of the upper soil layer is observed all over Romania, contributing to successful development of winter crops.

Winter grain crops are at the stage of 3rd leaf formation and tillering. This week sleet and wet snow is expected in the Northern regions, where sowing campaign is still not completed in some areas. In the Southern regions winter grains formed a good root system.

Winter rapeseed continued to form leaf rosette (5-10 leaves). According to visual estimates, plants gave even sprouts in the Southern regions and will enter winter in a well-developed condition. (UkrAgroConsult/Business World Magazine)

GERMANY: SAFE GAS TRANSIT THROUGH UKRAINE AND EXPANSION OF COOPERATION WITH ALTERNATIVE SUPPLIERS IN PRIORITY

Maintaining safe gas transit through Ukraine, expansion of cooperation with gas suppliers that are alternative to Russia are priorities for Germany, Minister of State for Europe at the German Federal Foreign Office Michael Rothousand has stated.

"Russia will continue to play an important role as a gas supplier. It is expected that Germany in the medium term will need Russian gas. However, we consider the political problems of our partners in Europe, take this matter seriously. Therefore long-term security of gas transit through Ukraine and expansion of cooperation with other supplier countries are important priorities for us", he said.

The minister said more than 95% of oil and over 90% of gas used in Germany were of foreign origin. Due to this the key to reliable energy supply to the country is the diversification of suppliers and routes of energy supply. (Interfax/Business World Magazine)

KAZAKHSTAN: RUSSIAN BANKS SLOW DOWN ACTIVITY

Russian banks have slowed down their activeness in Kazakhstan.

The total loan portfolio of Kazakh subsidiaries of Russian banks decreased by 154 billion tenges, or by 11% since the beginning of 2016.

The loan portfolio of Russian banks in Kazakhstan is reducing faster than the loan portfolio of other banks - the total loan portfolio of all second tier banks in Kazakhstan decreased by 0.4% during the period.

The deposit base of Russian banks in Kazakhstan has decreased by 80 billion tenges, or by 6% since the beginning of 2016, while the deposit base of all banks in Kazakhstan increased by 9% during the period.

The ratio of loans to deposits of Russian subsidiary banks in Kazakhstan remains at a high level - it decreased to 123% from 147% since early January. The ratio of loans to deposits (LTD) of all Kazakh banks in total has fallen from 100% to 91% in this period.

Alfa Bank has the lowest ratio of loans to deposits among Russian banks in Kazakhstan. The bank's LTD ratio has declined from 93% to 77%. The bank has carried out almost no lending operations since early 2015.

Sberbank Kazakhstan, one of the top five banks of Kazakhstan, decreased the loans to deposits ratio from 96% to 93% since early 2016.

The LTD ratio of the VTB Bank Kazakhstan, on the contrary, increased from 99% to 111% since the beginning of the year. The deposit portfolio of the bank is reducing faster than its lending activity.

Bank Home Credit has the highest ratio of loans to deposits among Russian banks operating in Kazakhstan – 210%. (Trend/Business World Magazine)

TURKEY: SOCAR TO CREATE CHEMICAL INDUSTRIAL PARK

SOCAR Turkey Enerji A.S., a subsidiary of Azerbaijan's state oil company SOCAR, wants to create a chemical industrial park, Hayati Ozturk, chief advisor of SOCAR Turkey Enerji A.S., said.

Ozturk said that creation of a chemical industrial park was an innovation for Turkey.

He noted that the demand for chemical products was increasing in Turkey and SOCAR's new model for the organization of chemical production would create a new concept.

"At present, the work is underway for the production of ethylene from methane", Ozturk said. "This will be a revolution for the energy sector of Turkey as it will reduce dependence on oil".

SOCAR Turkey Enerji A.S. owns a controlling stake in Petkim petrochemical complex and implements Star refinery construction project.

The assets of Petkim petrochemical complex increased by 44.2% and stood at 5.46 billion liras as of January 1, as compared to 3.79 billion liras in 2014.

Petkim's net profit increased by 14% YoY in 2015 and stood at 639.2 million liras. Its authorized capital has increased to 1.5 billion liras.

Petkim produces plastic packages, fabrics, detergents, and is the sole Turkish manufacturer of such products, a quarter of which is exported. (Trend/Business World Magazine)

UKRAINE: SOUTHEAST ASIA STRATEGIC EXPORT DIRECTION FOR AGRARIANS

The markets of South-East Asia is a strategic direction for the exports of Ukrainian agricultural products, the Deputy Minister of Agrarian Policy and Food of Ukraine for European Integration Olga Trofimtseva declared.

To date, Asian countries take a significant share in the regional exports structure of Ukrainian agricultural products - more than 45% (nearly $5 billion). At the same time, China and India are the leading two countries, importing Ukrainian grain and oilseed crops. But Ukrainian agricultural producers do not focus on the possibility of exports of value-added products, livestock products and organic products to the high-margin markets such as Japan, South Korea, etc. Ukraine has a great opportunity of pulses supplying to India, she said.

According to Trofimtseva, cooperation with Asian countries has both short-term and long-term perspectives for Ukrainian producers. In addition, it is important to remember the role of Asian countries as potential investors in the agricultural sector of Ukraine.

Also, the Ministry of Agrarian Policy together with representatives of the Ministry of Economic Development, the Ministry of Foreign Affairs and the Chamber of Commerce support Ukrainian businessmen, who want to develop on the Asian markets. The officials provide allthe necessary information, as well as capture partners, organize the required business events or trade delegations to the target countries. (APK-Inform/Business World Magazine)

USA: INTEREST IN AZERBAIJAN ENERGY PROJECTS TO STAY AT HIGH LEVEL

Donald Trump's victory in the US presidential elections denotes that a new era is underway both in world economy and world policy, Levente Kozma, the former Hungarian senior foreign policy advisor, reported.

In his victory speech, Trump promised to create major infrastructural projects, as well as several million new jobs, according to Kozma.

Kozma added that there was concern that the isolation Trump heralded during his campaign and a limitation of foreign trade relations would dominate his new economic policy and this would lead to deceleration of economic growth.

"Trump's victory could somehow reward the countries which are already adopting the policies, namely the policies designed to limit the economy's dependence on external financing", the expert said. "These policies are mostly found in Eastern Europe".

As for policy in the South Caucasus, the expert does not see any major reason or indication that Trump's victory would change the US strategy there.

"The new US administration's interest towards Azerbaijani energy projects will stay on a high level", he added. (Trend/Business World Magazine)

RUSSIA: 6 OIL FIRMS SIGN PRELIMINARY DEALS WITH IRAN

Russian oil and gas producers Lukoil, Zarubezhneft, Rosneft, Tatneft, Gazprom and Gazprom Neft have signed preliminary agreements on joint works with Iranian companies, Iranian Deputy Oil Minister Amir-Hossein Zamani-Nia reported.

Deputy Energy Minister Kirill Molodtsov said that the Russian companies were interested in development of oil and gas both on the Iranian land and shelf.

"Russian companies, such as Rosneft, Gazprom Neft, Zarubezhneft, Gazprom, Lukoil, are expressing undeniable interest in a contract for exploration and development in the Republic of Iran, announced as early as last year", he said.

The Russian ministry expects that Tehran will present the conditions of new contracts exclusively to Russian companies, as agreed upon between the authorities earlier, Molodtsov said.

Zamani-Nia said that Iran was prequalifying international companies and looking forward to a proactive approach from Russian producers.

"There is a shortlisting now, an issuance of prequalification to international companies. We are impatiently waiting for proactive steps from Russian companies so they follow the example by their foreign colleagues", he added.

Molodtsov said that Moscow and Tehran were not discussing oil and gas swap deals so far.

The ministry expects that a Russian-Iranian commission will discuss energy cooperation in detail in mid-December, Molodtsov said.

"Today's event is first of all preparation to the intergovernmental commission's meeting to take place within a month, scheduled for December 10-20, in Tehran with a goal of a detailed and all-encompassing study and alignment of positions of state and business representatives", he said. (Prime/Business World Magazine)

WORLD: ABSTRACTNESS OF TRUMP-LED US TO HELP SOUTHERN GAS CORRIDOR

The US pressure on Europe will weaken when Donald Trump comes to power, Valentin Zemlyansky, director for energy programs at the Center of World Economy and International Relations at the Ukrainian National Academy of Sciences, reported.

The presidential election was held in the US on November 8. Republican presidential nominee Donald Trump won the election.

The expert added that the US authorities' attention would be directed to a greater extent to the internal problems of the country, as Trump previously stated himself.

Zemlyansky noted that such an abstractness of the US would have a positive impact on the implementation of the Southern Gas Corridor project, because it was related to the complex process of interstate relations.

The expert noted that the Southern Gas Corridor project provides significant opportunities not only in terms of gas supplies to the countries of Western Europe, but also in terms of possibility of participation of a number of countries in Central and Eastern Europe as transporters of gas to final consumers.

"I believe that the implementation process of the Southern Gas Corridor project will be significantly accelerated", the Ukrainian expert said.

The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region to the European countries through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor project. Other sources can also join this project at a later stage. (Trend/Business World Magazine)

THAILAND: GAZPROMNEFT-AERO FUELING STATIONS NETWORK EXPANDED

Gazpromneft-Aero and PTT Public Company Limited, the largest oil and gas company in Thailand, have signed new agreements on fueling of Russian airlines in the international airports of Bangkok and Phuket during the 2016-2017 autumn-spring navigation season.

The agreements will see a total of 11 thousand tons of aviation fuel supplied to Gazpromneft-Aero customers during this period, up by 30% YoY.

The fueling of Russian airlines in Thailand is being carried out within the framework of Gazpromneft-Aero and PTT's previous agreement on the network supply of aviation fuel, signed in 2012. The agreement provides for the supply of fuel to Gazpromneft-Aero's Russian customers in Thai airports. During the last four years, Gazpromneft-Aero's customers have been refueled via PTT for a total of 60 thousand tons.

General Director of Gazpromneft-Aero Vladimir Egorov said: "Autumn-winter period is traditionally the most popular time for Russian tourists to visit Thailand, with many using special flight programs. The agreement with PTT ensures the best standards of service for all Gazpromneft-Aero customers and timely fuelling in the major airports in Thailand. We plan to continue developing our cooperation with PTT, which provides us with a good opportunity to expand our presence in the promising South-East Asian market during the busiest seasons. Gazpromneft-Aero has also confirmed that it will be providing a network of fueling facilities in Russia for servicing PTT customers". (Energyland/Business World Magazine)

TURKMENISTAN: INTERNATIONAL INVESTMENT FORUM UNDERWAY IN AVAZA ZONE

The eighth International Investment Forum is underway in the congress center of the Avaza national tourist zone in Turkmenistan.

According to the government message, the event, which brought together delegates from 20 countries, focuses on the cooperation in transport and communication sector, logistics, banking, financial services, insurance.

Among the participants are Engin Goksu, head of EBRD office in Turkmenistan, Halil Avci, chairman of the Turkish-Turkmen Business Council, Nikolai Stratiev, executive director of the Bulgarian-Turkmen Chamber of Industry and Commerce, the message said.

The agenda includes the prospects for cooperation on the basis of key sectors of the national economy, the growing potential of which is based on an increase in export competitiveness, modernization of enterprises and the establishment of modern facilities.

The opportunities of increasing investment attractiveness of the Turkmen economy, in particular, the building complex, chemical industry, agriculture, health care are being discussed at the forum, the message said. (Trend/Business World Magazine)

AZERBAIJAN: IRAN INVESTS NEARLY $1.2 BILLION IN ECONOMY

Iranian investments in Azerbaijan's economy amounted to almost $1.2 billion, $145 million of which were invested in the country's non-oil sector, Head of Azerbaijan Export and Investments Promotion Foundation (AZPROMO) Rufat Mammadov said.

He said that 450 companies with Iranian capital currently operated in Azerbaijan.

"We believe that we can increase the volume of mutual investments", Mammadov said. "We have all the opportunities for that. In recent years Azerbaijan has done significant work to improve the investment climate in the country, and nowadays we have certain proposals for the Iranian investors. It is not just about investments for large companies but also for the small ones".

The head of AZPROMO said that the relations between Azerbaijan and Iran were very sincere, and this opened up new opportunities for the development of trade and other ties.

"Iran and Azerbaijan are creating joint plants for production of cars and pharmaceuticals", Mammadov said. "This in turn is an indicator of high confidence of Iranian investors in Azerbaijan. The country's businessmen also actively operate in Iran and on the whole are very interested in this market".

The trade turnover between Azerbaijan and Iran amounted to $137.65 million in January-September, more than $102 million of which fell on the import of Iranian goods, according to the State Customs Committee of Azerbaijan. (Trend/Business World Magazine)

RUSSIA: OKSKAYA SHIPYARD DELIVERS PONTOON PARK PP-2005 TO DEFENSE MINISTRY

On November 10, Okskaya Shipyard (UCL Holding) delivered new pontoon park PP-2005 built for RF Defense Ministry under the contract signed in 2015. The contract was fulfilled as scheduled.

PP-2005 is intended for installation and maintenance of bridge and ferry crossings. The shipyard has performed core production modernization and improvement of the facility structures.

Okskaya Shipyard currently builds pontoon facilities for military and civilian purposes including those to be deployed in challenging conditions for development of oil and gas fields.

Okskaya Shipyard is a modern shipbuilding enterprise (member of VBTH, a division of UCL Holding). It specializes in the construction of oil tankers and medium-tonnage mixed 'river-sea' class dry cargo vessels, containerships, special vessels and barges.

UCL Holding is an international transport group, consolidating a number of Russian shipping, shipbuilding, rail, stevedoring and logistics companies. UCL Holding also includes North-West Shipping and Volga Shipping companies, VF Tanker, a portfolio of shipbuilding and cruising assets. (Portnews/Business World Magazine)

RUSSIA: ONEZHSKY SHIPYARD LAUNCHES ICE-CLASS WORKBOAT SPOLOKHEE FOR ROSMORPORT

On November 9, Onezhsky Shipbuilding, Ship Repair Yard (Petrozavodsk, Republic of Karelia) launched an ice-class workboat of Project SI23WIM built for FSUE Rosmorport.

The ceremony was attended by the Head of the Republic of Karelia Alexander Hudilaynen, deputy secretary of Russia's National Security Council Mikhail Popov, deputy head of Petrozavodsk municipality Aleksandr Ratnikov, Deputy General Director for State Property Management of FSUE Rosmorport Olga Bragina, General Director of Onezhsky Shipyard Vladimir Mayzus and other officials.

The boat is intended for operation in the mouths of rivers, in coastal areas of open and internal seas, in straits and port waters within 20 miles from a place of shelter.

The boat is to be deployed for operation at the seaport of Arkhangelsk.

Onezhsky Shipbuilding, Ship Repair Yard was founded in 2002 on the basis of ship-repair facilities of the Belomorsky-Onezhsky Shipping Company, formed in 1944. In 2011 after the enterprise management dismissal the production stopped, and the company went bankrupt. In late 2014 the enterprise was transferred to the state ownership and resumed its shipbuilding / repair activity. (Portnews/Business World Magazine)

RUSSIA: DIGITAL TECHNOLOGIES TO RAISE PRODUCTIVITY

Changes triggered by the evolution of digital technologies could raise labor productivity, but carry serious risks for countries finding themselves unable to catch up with "the technological wave", Russian President Vladimir Putin said.

"Digital technologies influence all facets of society's life; literally, before our eyes, such spheres as healthcare, pharmaceutics, power and city environment are getting new qualities", Putin said. "The mode of people's life is changing under the influence of digital technologies. Such changes open a path to dramatic improvement of labor productivity, create unique opportunities, make mastering new market niches and getting real profits possible".

Countries that will fail to develop the digital industry will be on the outskirts of progress and outsiders in competition, the president said, adding that new technologies could undermine popularity of traditional industries.

"Changes of professional requirements and automatization of manufacture on a new basis without due preparation of staff can provoke structural unemployment", Putin said.

Cyber risks and threats must not be ignored.

"Systems of network access, digitalization of the public and personal life require a secure protection of interests of citizens and the country as a whole", he said.

Moscow plans to craft legislation to regulate a transfer of technologies and protection of intellectual property, the president said.

"It's crucially important that all our initiatives, long-term plans to create a new digital economy come true in the territory of the Eurasian Economic Union meaning they would go beyond national borders to the level of a big regional union", Putin said, adding that Russia had a huge potential of technological development. (Prime/Business World Magazine)

RUSSIA: SEASONALLY ADJUSTED GDP UP IN Q3 2016

Russia's seasonally adjusted gross domestic product (GDP) grew by 0.1-0.2% QoQ in July-September, Kirill Tremasov, director of the Economic Development Ministry's macroeconomic forecast department, reported.

"According to our estimates, these dynamics will persist this quarter", he said.

Russia's GDP may contract by 0.6% in 2016 and may grow in 2017, he also said. (Prime/Business World Magazine)

RUSSIA: INTER RAO MULLS BUYING ENEL RUSSIA

Russian power holding Inter RAO is considering buying power producer Enel Russia.

Inter RAO's delegation plans to visit Enel Russia's facilities for appraisal in the near future, the sources said. The deal can be signed by mid-December, one of the sources said.

Inter RAO has necessary funds to finance the purchase, as in May the holding sold 40% in power utility Irkutskenergo to EuroSibEnergo for 70 billion rubles and had 101.1 billion rubles on its accounts as of late June.

Under control of Inter RAO Enel Russia's power facilities may receive a 10% discount on gas from oil major Rosneft and on coal from the Ekibastuz field, Renaissance Capital analyst Vladimir Sklyar said. Enel Russia could thus save up to 3 billion rubles on fuel, while the combined effect from Enel Russia's integration into Inter RAO through optimization of expenditures may amount to up to 9 billion rubles, the analyst said.

Italy's Enel Investment Holding B.V. holds 56.43% in Enel Russia. (Prime/Business World Magazine)

RUSSIA: UTLC TO TRIPLE CAPITAL BY 2025

United Transport and Logistics Company (UTLC) of Russia, Belarus, and Kazakhstan may more than triple its capital by 2025,according to the company's development strategy sent to its shareholders for approval.

In 2014, Russian Railways, which holds 99.84% in UTLC, contributed 50% in container shipping company TransContainer and 100% in Russian Railways Logistics into UTLC, but in 2016 decided to divest the assets. In 2016-2017 UTLC will be a company without assets and will focus on providing transit traffic services, according to the document. Its cargo traffic is planned at 86,100 twenty-foot equivalent units (TEUs) in 2016, 137,500 TEUs in 2017 and is projected to jump to 1 million TEUs by 2025.

UTLC may receive a net profit of $5.1 million, and revenue of $11.56 million in 2016. In 2017, its net profit is planned at $25.5 million, revenue is projected to soar to $40.5 million, and EBITDA will reach $31.2 million.

In 2018-2020, UTLC will consider buying innovative assets and cooperating with the Transport-Logistics Center.

If shareholders decide to leave UTLC without assets, the company's revenue will amount to $55.8 million in 2025, EBITDA will stand at $44.1 million, and capital will be $392.4 million. In this case, the shareholders may receive $114.47 million in dividends. If the shareholders decide to buy up to 50% of assets and invest in the Transport-Logistics Center, UTLC's revenue may reach $88.97 million in 2025, EBITDA may grow to $66.95 million, and net profit to $49.2 million. In this case, the company's capital will amount to $596 million, its current value stands at $169 million. The shareholders will thus receive $93.53 million by 2025. (Prime/Business World Magazine)

RUSSIA: MINISTRY OF FINANCE NOT TO IMPOSE THE EXCISE DUTIES FOR PALM OIL

The Ministry of Finance of the Russian Federation does not plan to impose the excise duty for palm oil, the head of the ministry Anton Siluanov declared.

According to him, the ministry refused the idea.

In the beginning of 2016 the Ministry of Finance reported on its plans to work out the reporting measures. (APK-Inform/Business World Magazine)

RUSSIA: GRAIN EXPORT PRICES UP LAST WEEK

Russian wheat continues rising in price on the export market.

On average, export prices for Russian milling wheat closed the week up by another $2 at $180-182/MT FOB for 12.5% wheat in Novorossiysk port for November-December delivery.

Export prices for Russian high-protein wheat are pushed up by reviving export shipments against the background of strengthening demand from importers.

Export prices for wheat with 11.5% protein showed similarly considerable growth - up by some $1 to $175-177/MT FOB in Novorossiysk port for November/December delivery.

Corn export prices also increased by $1-2 supported by vivid exports of new-crop corn along with pace of harvesting lagging 18% behind compared to last year. (UkrAgroConsult/Business World Magazine)

RUSSIA TO PURCHASE 2-3 MILLION TONS OF GRAINS TO THE PUBLIC INTERVENTION FUND

The public intervention fund of the Russian Federation has to purchase another 2-3 million tons of grains, but it is quite unlikely due to the shortage of funds, the President of the Russian Grain Union Arkady Zlochevsky declared.

The head of the Russian Grain Union said that the funds were not required for crop purchasing operations, since credit resources were used for such purpose, but then, after the government purchased grains, the officials had to compensate the costs of the purchasing agent to pay the interest rates of the loan, bank costs, as well as the storage costs.

But there are no money resources for such operations, therefore the government cannot expand the fund stocks and increase its efficiency on the market, Zlochevsky said.

At the same time, he noted that to date selling grains to the public intervention fund was the major priority for the market, because its purchasing prices were higher compared with the market ones. But the government was not able to purchase all proposed grain volumes. (APK-Inform/Business World Magazine)

RUSSIA: 500 BILLION RUBLES OF REVENUE PLANNED FROM PRIVATIZATION IN 2017

The Russian state coffers will receive 490-500 billion rubles, besides the 138 billion rubles which are already envisaged by the 2017 budget, from privatization, Deputy Economic Development Minister Yevgeny Yelin reported.

"Talking about the estimate, what remains outside the budget, what we count on is at least 490-500 billion rubles in 2017 that we will be able to receive from privatization of large stakes", Yelin said.

Yelin said that the ministry had suggested including Sberbank in the 2017-2019 privatization list.

"This is what is included in the draft privatization plan. Anyway what I have said, what we have said, what is being considered - Russian Railways, Novorossiysk Commercial Sea Port (NCSP), a lot more objects. We are considering Sberbank as well. Not in 2017, in a three-year period ", he explained.

Deputy Finance Minister Alexei Moiseyev said that the ministry did not rule out selling a small stake in Sberbank while retaining state control.

"Since our stake in it is 50% plus one share and a voting stake of about 52%, we can sell the difference, a small one", he said.

But Sberbank CEO German Gref reported that no one had discussed the proposal to privatize Sberbank with him.

"We are always ready for that, but it is unlikely to happen, as it is the president of the country who makes such decisions and laws have to be changed. I think that it is more of an idea than a plan", he said.

According to Yelin, there is consensus that VTB and Sovcomflot must be sold in 2017, while the rest of the 2017 privatization list cannot be announced so far. (Prime/Business World Magazine)

RUSSIA SEEING RISKS FOR GAS TRANSIT THROUGH UKRAINE THIS WINTER

Russia sees risks for transit of its natural gas through Ukraine this winter as the gas it has stored will not be enough, Energy Minister Alexander Novak reported.

"We see risks because they haven't stored enough gas in underground facilities, while the air temperature right now is significantly lower than average annual figures", he said.

According to Ukraine's gas transportation system operator Ukrtransgaz, the volume of gas in Ukrainian underground storage facilities contracted by 0.11% to 14.326 billion cubic meters. (Prime/Business World Magazine)

RUSSIA: BANKS FACE DDOS ATTACK WAVE FIRST TIME IN 2016

A hacker raid against Russia's biggest banks, started on November 8, has become the first large-scale DDoS attack wave in 2016, antivirus genius Kaspersky Lab said.

Hackers opened attacks on at 4 p.m. Moscow time and were still active late next day, Kaspersky Lab said. A source close to the central bank said earlier that the country's top five banks had been facing minor DDoS attacks since November 8.

DDoS attacks imply external influence on banks' systems aimed at their overload. They can halt banks' operations. The last massive wave of attacks was registered in October 2015.

Attacks lasted on average for about an hour each, and the strongest was almost 12 hour long. Several banks confronted attacks, which reached 660,000 requests per second.

Hackers used botnets, networks of infected devices consisting of over 24,000 machines. More than half of devices were located in the U.S., India, Taiwan and Israel. Machines from more than 30 countries participated in the attacks, Kaspersky Lab said.

Sberbank and Alfa-Bank confirmed DDoS attacks.

"Online resources of Sberbank saw powerful DDoS attacks on November 8. The attacks were organized via botnets, uniting dozens of thousands of machines, which were scattered across several dozen of counties", a Sberbank spokesperson said.

"The attack was rather short and weak. It did not undermine the work of Alfa-Bank's business systems", a bank spokesperson said. (Prime/Business World Magazine)

BELARUS: SLOOTSK WEIGHT HANDING EQUIPMENT PLANT TO START BUILDING A-FRAME CRANE FACTORY

The Slootsk-based Weight Handing Equipment Plant (Minsk region) plans to start building a new factory in early 2017 to manufacture A-frame cranes and traveling cranes with a load capacity of up to 240 tons.

The total value of the project is estimated at Br24.239 million ($12.746 million).

The Slootsk plant (affiliated to BelAZ Golding Group) currently manufactures traveling cranes with a maximum load capacity of up to 120 tons. (Prime-TASS/Business World Magazine)

BELARUS: SME LOANS AND LEASE DEALS AT 10% PER ANNUM

Belarus' Entrepreneur Support Fund (BESF) on November 1, started offering loans and lease deals at 10% per annum to small private-owned companies, BESF said in a release.

BESF funds are provided on a competitive basis for a maximum period of 5 years. The credit amount is limited to Br210,000 ($110,100). One of the principal competitive conditions is that the applicant company should have at least three employees. The credit funds will be provided to manufacturers (providers) of export oriented or import substitution products (services).

Contests will be held every 15 days.

The current budget resources accumulated in the BESF stand at Br1.446 million ($758,760). (Prime-TASS/Business World Magazine)

RUSSIA: THROUGHPUT OF ARKHANGELSK PORT DOWN IN JANUARY-OCTOBER 2016

In January-October Arkhangelsk Sea Commercial Port OJSC handled 1,172,500 tons of cargo (down by 15.8% YoY), the company says.

Transshipment of import cargo plunged 3.3 times YoY, to 17,000 tons, exports – almost 2.2 times to 190,100 tons, short-sea traffic went up by 1.4% to 915,600 tons.

Arkhangelsk Sea Commercial Port OJSC is a multi-profile stevedoring company of port Arkhangelsk. It specializes in transshipment of general cargo, cellulose, cardboard, containers, timber, metal, fertilizers, heavy equipment, loose and dry bulk cargo. In 2015, the company handled 1.599 million tons of cargo. (Portnews/Business World Magazine)

RUSSIA: THROUGHPUT OF KALININGRAD PORT ALMOST FLAT IN JANUARY-OCTOBER 2016

In January-October Kaliningrad Sea Commercial Port handled 2,366,600 tons, which is almost the same as in January-October 2015, the stevedoring company says.

In the reported period, transshipment of general cargo totaled 951,300 tons (including 844,200 tons of metal), 823,600 tons of dry bulk cargo, 16,600 tons of timber, 188,100 tons of liquid bulk cargo and 30,100 tons of other cargo.

The port's container throughput totaled 36,699 TEUs.

Kaliningrad Sea Commercial Port OJSC is the largest enterprise of the regional port complex. Practically all means of transport and the basic part of the export-import freight traffic passing through the region, close in the port. In 2015, the port's throughput totaled 2.781 million tons. (Portnews/Business World Magazine)

RUSSIA: THROUGHPUT OF NEVA-METAL DOWN IN JANUARY-OCTOBER 2016

In January-October Neva-Metal CJSC (stevedoring company of Severstal) handled about 2.6 million tons of cargo, down by 2% YoY, the company reported.

Container throughput totaled about 79,000 TEUs.

CJSC Neva-Metal is a part of a transport division of Severstal Russian Steel of Severstal Group. Neva-Metal specializes in transshipment of containerized and general cargo delivered to its terminal in the 3rd Cargo Area of Big Port St. Petersburg by sea, railways and highways. (Portnews/Business World Magazine)

RUSSIA: THROUGHPUT OF PORT KAVKAZ UP IN JANUARY-OCTOBER 2016

In January-October port Kavkaz handled 25,541,000 tons (up by 7% YoY), Harbor Master of port Kavkaz Yevgeny Tuzinkevich reported.

Off-harbor transshipment complex handled 9,243,000 tons of export cargo (-22% YoY).

Transshipment of oil products increased by 30% to 11,272,000 tons, grain - by 23% to 4,138,000 tons, sulfur and mineral fertilizers - by 66% to 2,701,000 tons. Transshipment of LPG went down by 10% to 139,000 tons.

Exports from port Kavkaz fell by 46% to 368,000 tons, imports - 5.4 times to 74,000 tons. Transshipment of coastal trade cargo surged by 49% to 15,458,000 tons.

Passenger turnover climbed by 25% to 5,484,297 passengers.

Bunker sales at the port declined by 16% to 397,000 tons.

The number of calls increased by 31% to 23,416 calls. (Portnews/Business World Magazine)

MOLDOVA: TRANS CARGO TERMINAL INVESTS $6 MILLION IN EXPANDING GRAIN TERMINAL IN GIURGIULESTI PORT

As a result, Trans Cargo Terminal is now able to load more than 1,000 tons of grain per hour onto maritime vessels of up to 8,000 tons as well as river barges, the fastest loading rate of any grain terminal in the region.

The solemn ceremony for opening the grain terminal after the expansion took place on November 10, and was attended by the Vice-premier, Economy Minister Octavian Calmic, President of Trans Cargo Terminal, a daughter company of Trans Oil Group (TOG), Vaja Jhashi, Director General of Giurgiulesti International Free Port Thomas Moser, clients and partners of the company.

As Vaja Jhashi said, the expansion project consisted of the construction of an additional berth on the Danube, the erection of a silo with a capacity of 12,000 tons, the construction of a brand new deep-water jetty as well as the installation of high-capacity loading equipment.

"Thanks to the substantial increase of our capacity we will be able to attract new clients and at the same time enable our group of companies and our existing clients to increase the transshipment volumes", Vaja Jhashi noted.

The expanded facility has a total grain storage capacity of 70,000 tons and increased the transshipment capacity from 300,000 tons to 800,000 tons a year, which is equivalent to about 75% of the Republic of Moldova's annual grain exports. In total, about $6 million was invested in the project, which has created 30 additional permanent jobs.

Thomas Moser, the Director General of Giurgiulesti International Free Port's operator and general investor Danube Logistics, congratulated Trans Cargo Terminal on the successful completion of the project. According to him, the increased capacity ensures that from now on the majority of Moldova's grain exports can be shipped directly from Moldova to international markets.

In addition to the export of grain in bulk, which is mostly delivered to the markets in the Mediterranean region, significant quantities of Moldovan grain are exported in sea containers to Asia. During the 10 months of 2016, eleven Moldovan companies shipped more than 60,000 tons of wheat in sea containers from Giurgiulesti to countries such as Malaysia, Myanmar and Indonesia, Thomas Moser added. (InfoMarket/Business World Magazine)

UKRAINE: USDA RAISES CORN PRODUCTION FORECAST

In the November report, USDA raised its 2016/2017 corn production estimate for Ukraine by 1 MMT from the previous forecast, to 27 MMT. At the same time, the estimate for Ukrainian 2016/2017 corn exports was also increased, by 300 KMT to 18 MMT.

In addition, USDA upwardly revised its corn production and export forecasts for Russia. The USDA estimate for Russian corn production in season 2016/2017 was boosted by 500 KMT, to 14 MMT, while that for Russian exports grew to 4.7 MMT (+200 KMT). (UkrAgroConsult/Business World Magazine)

VIETNAM TO WITHDRAW FROM NUKE PROJECT WITH RUSSIA

The Vietnamese government has decided to withdraw from a deal to build Ninh Thuan-1, the first nuclear power plant, jointly with Russia because alternative resources have become cheaper and demand for electric power in the country has decreased, the Wall Street Journal reported.

The government is expected to pass its plan to withdraw from the deal to the National Assembly, the lower house of the parliament, which can ratify the document within November.

The National Assembly ratified a plan to build two units of the plant with Russian nuclear power corporation Rosatom and Japan Atomic Power in 2009. Construction was planned to be complete by 2027-2028, Deputy CEO of Rosatom Kirill Komarov said earlier.

The Ninh Thuan-1 power plant is projected to consist of two units based on VVER reactors with a capacity of up to 1.2 gigawatts each. Vietnam is expected to receive an 8-billion ruble loan from the Russian government for the plant construction. (Prime/Business World Magazine)

TURKEY: RUSSIA FORCING UKRAINE OUT OF SUNFLOWER OIL MARKET

In September Turkey decided to raise duties on safflower and sunflower oil imports.

Import duty on safflower was raised from 4% to 23.4%, while the duty on raw sunflower oil imports increased from 12% to 36%, on processed - from 50% to 67.5% per 1 MT. Such measures are taken in order to protect local oilseeds producers and crushers.

The reason for these changes is understandable and justified, if taking into account forecasts of record sunflower production in the Black Sea region, including Russia and Ukraine that are the major sunflower oil suppliers to Turkey. Combined share of these countries in Turkey's imports exceeds 90%.

Market operators expect that record crops in Ukraine and Russia will inevitably lead to price reduction not only for sunflower but also for its derived products. In this regard, Turkish processors will be in a very unfavorable economic situation, when the cost of their products will be higher than importers' prices for sunflower oil. (UkrAgroConsult/Business World Magazine)

RUSSIA DEVELOPING UNMANNED AERIAL TERMINATOR-DRONE LOOK-ALIKE

The VR-Technologies Design Bureau, part of Russian Нelicopters JSC, has developed the unique tiltrotor unmanned aerial vehicle. The new RHV-35 unmanned convertible aircraft was unveiled at the International military and technical forum ARMY-2016.

The new unmanned aerial vehicle looks like a drone from Terminator. A number of oil and gas companies and various government agencies are already showing interest in the unique project.

The project is implemented as part of the Speed program adopted by Russian Helicopters. The main objective during the development of the unmanned aircraft was to create a flying test bed to determine the efficiency of design layouts and search for innovative solutions.

Tiltrotors are a special class of rotorcraft that have a number of advantages over traditional aerial vehicles built according to the airplane or helicopter schemes.

They can make vertical takeoffs and landings on restricted landing pads while transporting passengers or cargo with greater speed and over longer distances than traditional helicopters.

The RHV-35 unmanned convertible aircraft has already made its maiden flight. Russian Helicopters performed the tests of the tiltrotor at Skolkovo Innovation Center. (Russian Aviation/Business World Magazine)

BELARUS: RUSSIA INVITED TO EXPORT FOOD TO THE WEST

Russia could use Belarus as a springboard for exporting agricultural products to the West. Deputy Prime Minister of Belarus Mikhail Rusy made the statement as he met with Governor of Russia's Bryansk region Alexander Bogomaz.

Speaking about Belarus' cooperation with Bryansk region in agribusiness, Mikhail Rusy noted that the relevant guidelines had been sketched out.

“We are going to work with major Russian agribusiness holding company Miratorg and utilize our southeastern lands in Mogilev region, northwestern lands in Vitebsk region. We could offer Belarus as a platform that can be used to reach other regions to Miratorg or someone else but we would very much like to see Miratorg here. Because there are various obstacles standing in the way of the Russian company's greater reach in the West while our base can be used to work more confidently and earn more serious money for each other”, the Deputy Prime Minister stressed.

Apart from that, Mikhail Rusy mentioned there were great prospects for cooperation in light industry.

“The Bryansk-based worsted fabric factory Kamvol and our worsted fabric factory Kamvol can do a great deal to develop together. Apart from that, our Orsha Linen Mill is ready to offer the things that the Bryansk enterprise needs”, he explained.

The Deputy Prime Minister underlined that cooperation with Bryansk region should follow a clear-cut policy.

“We should work together in accordance with the guidelines we have determined. The program on advancing cooperation between Belarus and Bryansk region that has been developed by specialists on both sides is very specific. But it can be broken down into even smaller sectors. We could put deputy ministers in charge of overseeing each sector and talk seriously at least every quarter of the year”, he stated.

Mikhail Rusy pointed out that raising the trade turnover was the key task Belarus and Bryansk region faced.

“It is necessary to raise the trade turnover to at least the figure registered in 2013 - $0.9-1 billion. It should be noted that our export to you and our import from you are roughly on par. Our interests do not contradict each other but complement each other”, the Deputy Prime Minister concluded.

A number of documents were signed as a result of the meeting, including a program meant to guide the development of cooperation between Belarus and Bryansk region in 2017-2019. Apart from that, the Vitebsk region administration and the Bryansk region government signed an agreement on cooperation in trade, economic, scientific, technical, humanitarian, and cultural affairs. The Brest region administration and the Bryansk region government signed an action plan on trade, economic, scientific, technical, and cultural cooperation in 2016-2019.

In January-May Belarus' trade with Bryansk region totaled $182.3 million, up by 6% YoY. The basic exports were milk and cream, machines and mechanisms for threshing and harvesting agricultural crops, butter, and wallpaper. The basic imports included oil products, ferrous metal waste products and scraps, paper and pasteboard, cement. (BelTA/Business World Magazine)

UKRAINE: KERNEL TO FULLY LOAD ITS PROCESSING CAPACITIES

In 2017 Kernel plans to use its processing capacities to full extent and increase sunflower seed crush to 3 MMT.

Record sunflower crop in Ukraine will increase availability of additional raw material on the market, which has higher profitability compared to other crops.

Sunflower crop in Ukraine will reach record 14 MMT and processing will increase by 15% and reach 13.3 MMT. As of November 1, Ukrainian farmers obtained 12.2 MMT of sunflower. (UkrAgroConsult/Business World Magazine)