Nord Stream 2 Begins Preparations to Pump Gas, Watchdog Calls for Covid Measures

LOCAL NEWS

• As noted yesterday, Nord Stream 2 is set for commissioning with the first string of the pipeline to be filled gradually as a prerequisite for technical tests.
  • Additionally, pre-commissioning of the second string is underway, but some conditions still need to be fulfilled for commissioning to take place. This comes as the European Gas shortage reaches fever pitch with inventories still at historic lows
• Russian watchdog says Covid-19 cases went up 14% last week with cases on the rise in 67 regions with incidence at 20% or more in 12 regions. Watchdog called on Govt to take special measures to curb the virus in these areas, despite recent unwillingness to impose new restrictions. Some regions are also at risk of running out of hospital beds
• Gazprom & Rossium apply for the purchase of Otkrite bank from the CBR. The sale of the bank to a strategic investor offers a quicker exit from the asset than an IPO.
  • However, the CBR has called for lower state participation in the banking system, but a federal official said the shareholders of Otkrite will decide who is private or state owned
• CBR says the discussion on raising the threshold for accumulating funds in the National Welfare Fund (NWF) to 10% from 7%, taking into account the risks of energy transition, is justified.
  • Until this level is reached, it is proposed not to allow the fund's funds to be placed in other financial assets, with the exception of the list of infrastructure projects approved after October 1, 2021, in an amount not exceeding 2.5 trillion rubles.
• Finance Ministry says the associated risks of a drop in oil demand may threaten the budgetary stability of the Russian Federation in the relatively near future – IFX

Data/Events

• Putin holds govt meeting on climate change
• FinMin Siluanov & Deputy CBR Gov Zabotkin speak at Federation Council