I think they are not too worried about automobile industry.
In long interview. Priority is Aviation, Engines and Electronic components. They are creating more power full engines for Mi-26 in addition to all others.
Russia Economy Thread
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In long interview. Priority is Aviation, Engines and Electronic components. They are creating more power full engines for Mi-26 in addition to all others.
Putin: "Inflation in Russia at the end of the year will be around 12%, but it tends to decrease and could reach 5%. Unemployment in Russia at 3.8% - less than before the pandemic."
Gazprom begins supplying gas from Kovykta to Power of Siberia pipeline for commissioning, start-up under load
MOSCOW. Oct 25 (Interfax) - Gazprom has begun supplying gas from the Kovyktinskoye field to the Kovykta-Chayanda gas pipeline, part of the Power of Siberia gas pipeline system, for commissioning and start-up under load, the company said in a statement."In December of this year, following the completion of commissioning and start-up operations, the Kovyktinskoye field and new gas transmission capacity will be put into operation. A powerful complex will be created for producing and transporting gas in Eastern Siberia and the Far East. It will provide an impetus for more efficient economic development in the east of our country, and for increasing supplies to foreign consumers, such as China," the company quoted Gazprom CEO Alexei Miller as saying.
"In accordance with the plan, the supply of gas from the Kovyktinskoye field began today for commissioning and start-up under load at LNG processing unit No. 2 (UKPG-2) of the Kovykta-Chayanda section of the Power of Siberia gas pipeline," Gazprom said.
"Power of Siberia is an unprecedented infrastructure project in Russia in the 21st century. Power of Siberia's total length has increased to 3,000 kilometers," Miller said.
UKPG-2 is one of the key facilities for the development of the Kovyktinskoye field. The unit is designed to clean and dry the gas produced, after which gas prepared to the required parameters is sent to the main gas pipeline. During commissioning, the gas field and gas pipeline section's technological systems and equipment are tested in various operating modes.
The field's recoverable gas reserves amount to 1.8 trillion cubic meters and gas condensate to 65.7 million tonnes. The planned design capacity is 27 bcm of gas per year. With its launch, the resource base in the east of the country for gas supplies to Russian consumers and for export is expanding significantly, Gazprom said.
Gas supplies to China from the Chayandinskoye field in Yakutia began at the end of 2019. The Kovyktinskoye field should be connected to the pipeline in the coming months.
The gas supplies are due to be ramped up to 38 bcm per year in the first five years.
Gazprom supplied China with 10.39 bcm of gas along the Power of Siberia pipeline in 2021, 390 million cubic meters more than the contract stated. Planned supplies are 15 bcm in 2022 and 22 bcm in 2023.
My comments: For reference the Kovyktinskoye gas field is one of the two large gas fields which are supposed to provide gas to the Power of Siberia gas pipeline from Russia to China. The other large gas field being the Chayandinskoye gas field. Currently Power of Siberia is getting gas from Chayandinskoye but that was supposed to be limited to like 25 bcm per year of gas as you can see in the map above. Kovyktinskoye was going to add supposedly another 25 bcm per year when fully ramped up. The connection of Kovyktinskoye gas field to Power of Siberia required the construction of an additional 800 km long pipeline which is planned to be operational this year. Construction on this 800 km length Kovykta-Chayanda gas pipeline started in 2019.
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They are working so well that Russia is only seeing 4% gdp drop and much less inflation than other countries. While Europe at the same time is going into recession approaching that and is permanently losing their industries. One could easily add that Germany's losses are permanent and Russia's losses can be regained later when chinese firms are able to freely set up local production there
Wait I thought the Russian economy was contracting over 12% due to the war? Are they moving the goal posts now?
Exactly for this reason the post, GDP fell by an average of 4% in the two quarters following the invasion of Ukraine and the implementation of sanctions, the 4th quarter is still to be seen if this trend will continue, in terms of sanctions, 4% is nothing , many countries have had economic crises falling even more than this percentage, but in terms of quality of GDP, there will definitely be a notable drop in quality of life, even if momentarily.
In fact the forecast was 15%.
Automobile production in Russia crashed severely with the sanctions since the Western companies who had factories in Russia pulled out. People are also not interested in buying cars for which car parts might be unavailable in the future. So it has taken quite a while for existing foreign car manufacturer stocks to be exhausted. But Lada is still making cars. Older models for which the whole supply chain is in Russia. Lada more than doubled their car sales. Chinese manufacturers and retailers are still operating. And the drop in production of trucks and buses was a lot less significant than for automobiles. In fact it was kind of negligible.
The former assembler of Renault cars in Moscow city is going to start assembling licensed cars from Chinese JSC already this quarter. And given the huge gap between supply and demand in Russia it is expected that other Chinese or Iranian car manufacturers might pick up the now deserted assembly plants. Moscow city is providing land for industrial developments at zero cost. In the meantime the Russian government started a fund to make Russian electronics chips for cars to replace imports.
The former assembler of Renault cars in Moscow city is going to start assembling licensed cars from Chinese JSC already this quarter. And given the huge gap between supply and demand in Russia it is expected that other Chinese or Iranian car manufacturers might pick up the now deserted assembly plants. Moscow city is providing land for industrial developments at zero cost. In the meantime the Russian government started a fund to make Russian electronics chips for cars to replace imports.