Business & Financial News

It is the first time that the idea of gas OPEC creation was supported by the western company. The Total chief has declared that the gas cartel led by Russia will help to constrain a rise in prices on raw material. Actually thus the Frenchmen try to gain confidence of “Gazprom” in order to take part in the Shtokman project.
Total chief Christophe de Margerie has supported the idea of creation of the organization, similar to gas OPEC. In his interview to Times, Christophe de Margerie said that the cartel of world gas manufacturers is capable to play a positive role in conditions of a prompt rise in prices on this fuel. The chief has also emphasized that gas ОPEC would help to avoid inefficient investments, that works in interests of the consumers. Christophe de Margerie it has resulted the work of the oil-extracting states cartel of as the successful example of business cooperation in this area.
The idea of creation of “new OPEC” in February was supported by president Putin who named it as “interesting” and prospective and has promised to think about it.
Actually, Russia was the first country that started talkings about “new OPEC”, however, then the country has diligently rejected from its initiative.
In the beginning of this year the idea has again become the top-point question: the Iran chief has called Russia for creation of gas cartel. Vladimir Putin has “restraint-positively” supported such idea.
However, “oil model” is hardly directly applicable to the gas market. The experts emphasize that pricing of gas essentially differs from the scheme of formation of the world prices for oil. Gas contracts are usually signed up for a long term with the price, adhered under the formula of the price for oil. If “Gazprom” sets real market prices, it will have to refuse from long-term contracts because the company does not have “free” stocks of gas.
The association of the countries gas-manufacturers could become really effective within the terms of realization of large infrastructural projects and the construction of the gas mains. Cooperation in deposits development without transfer of resources to the property of the partner also can be possible.

Hershey, the greatest chocolate manufacturer of the USA, is going to reduce 1 500 workplaces in its supply department within the following three years as a part of the re-structuring plan. The plan foresees manufacturing of some of Hershey’s simplest products, and construction of a new factory in Monterrey (Mexico). The company will squander $575m (£294m) on updating.
When the renovation will be completed, Hershey will approximately make 80 % of its manufacture in the USA and Canada.
Hershey has lost a share of the American market to Mars and has informed about its 10 % default in the quarterly income. The company is going to make a part of money rescued accessible on the investment into their new “sweet creations”.
Richard Lenny, the chairman and chief executive of the company, said that new marketplace gives them both problems and wonderful opportunities.
For a long time Hershey has been fighting with rigid competition, languid commercial and weak profit and has managed to increase its accent on new products, type of dark chocolate, which is the unique submission of nuts and cookies.

The European commission has confirmed today, that Cyprus has submitted the official application for joining to a European Currency Zone. Amelia Torres, the Eurocommission mass-media representative has declared that Cyprus has really forwarded the inquiry about readiness of the country to join Eurozone.
The Eurocommission and the European Central Bank are expected to inform on their decision in the middle of May. The final decision will be accepted in June.
Earlier, Michalis Sarris, Minister of Finance, has informed, that Cyprus will officially make an application on entering to the Eurozone since January, 1st, 2008. Michalis Sarris has also assured that Cyprus completely correspond to all Eurozone criteria.
As he said the budget deficit of Cyprus in 2007 will make less than 2 % of gross national product, that is 3 % below the level established for the Eurozone countries, and in 2006 inflation has made 2,2 %, that is also below the established borders.
According to Minister’s words, the official application will be directed to EU within two days. As Sarris has informed, euro should become Cyprus’s national currency since January, 1st, 2008. Thus, Cyprus expects to become the second country (after Slovenia) from among “new” members of the European Union which have entered to Eurozone.
Nowadays euro is monetary unit of 13 countries - Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Slovenia, the Netherlands, Portugal and Spain.
With euro introduction on Cyprus the Cyprian pound (it is also known as Cyprian lyre) - the currency existing since 1879 will become a part of Cyprus’s history. For inhabitants of Republic Cyprus the Cyprian pound has been associated with long-term financial stability and well-being.

The new oil-and-gas giant - the Norwegian company created on the basis of merge Statoil and Hydro, - can make a serious competition of Russia in the market of deliveries of power resources in the countries of the continental Europe. Norway provides 15 % of all energy sector of the Western Europe. By estimations of scientists, resources of a continental shelf of the country are still being developed, thus, as it is considered now, the basic unknown reserves are concentrated in Barents Sea near the Russian border.
Long-term cooperation with Russia is one of mainstreams of the Norwegian foreign policy in the Far North. This information was declared by Odd Roger Enoksen the Oil Industry and Energy Minister of Norway. The minister said that Russia and Norway are large manufacturers of oil and gas, and they are also the neighbors in the North and share the responsibility for resource management of the Barents Sea.
The Minister has also mentioned that the Norwegian government will continue the implementation of the Norwegian oil-and-gas industry extensive support and will try to cooperate with Russia in this sector.
Roger Enoksen expects that in the nearest future the export of the Norwegian gas will reach 125-140 billion cubic meters; this will become possible, if new gas areas (Ormen Lange and Snevit) will be explored.
Enoksen has also stressed that Norwegian government does not support the idea of one more gas-exporters alliance establishment and insists just on mutual cooperation.

“LUKOIL” and Qatar Petroleum gas companies have signed the memorandum of mutual understanding concerning cooperation in the field of investigation, development and rehabilitation of oil-and-gas deposits. Such information has been represented by the “LUKOIL” mass-media service.
Today the document on oil-and-gas cooperation was signed by Vladimir Putin, Vagit Alekperov (”LUKOIL” head) and Abdallah Ben Hamad Al-Attiyah (Quatrain State Energy Minister) at one of the set-meetings in the context of Russian President’s visit to Qatar.
The document provides, that the parties will develop common frameworks for consideration the opportunities of joint realization of oil-and-gas projects in the territory of Qatar. It is obvious that, being one of world leaders of liquefied natural gas production, Qatar also possesses significant oil-and-gas potential recourses and a highly developed economic infrastructure.
Later, Vagit Alekperov has declared that their company “LUKOIL” Petroleum Company is interested in participation both in new, and in operating oil-and-gas projects in Qatar, considering strategic importance of region of Persian Gulf as to the largest oil-and-gas province of the world.
Abdallah Ben Hamad Al-Attiyah, supporting further collaboration between two countries, has added that Qatar Petroleum was glad to welcome the international oil companies into joint projects concerning the development of their country. And all their projects, including gas, oil-and-gas, petrochemical, are based on long-term and mutually advantageous attitudes with strong international partners, and Quatrain government is looking forward to new opportunities for partnership and further development cooperation with Russian “LUKOIL” company.

Mohammad Saidi, the vice president of the Iranian Atomic Energy Organization, has declared, that more than 90 % of projects of cooperation of Teheran with the International Atomic Energy Agency (IAEA) are continuing to be worked out.
The IAEA has decided to cut almost by half projects of the technical assistance to Iran; about 22 of 55 projects of cooperation in nuclear area with Teheran are practically being frozen.
Thus the Iranian representative has specified that the remained 10 % of projects will be considered at subsequent IAEA’s sessions.
According to Saidi these projects are rather minor and insignificant.
The decision of the IAEA is based on the resolution of UNO’s Security Council 1737, accepted in December, 2006. The final decision will be accepted on Advice of IAEA managing directors in March, 2007.
In 1997 Iran received from the Agency the technical assistance, concerning 20 projects, including regulations in the field of nuclear safety, peace atomic engineering, and reception of radioisotopes for the medical purposes.
In Teheran the IAEA’s latest decision is considered as the reduction of Iran’s cooperation with this international organization.

Scale nationalization in Venezuela is continue to grow: on Thursday Ugo Chavez government has agreed about the repayment of 82 percent share holding of the largest private power company of country Electricidad de Caracas, belonging the American company AES Corp.
Having estimated the campaign in 900 million US dollars, the Minister of Power of Venezuela has also told that the shareholders can keep the packages or to sell the shares to the government within the limits of the transaction which is planned to be finished by April, 30th. Earlier the government promised to nationalize Electricidad de Caracas only by July.
The President Chavez, who has received emergency powers on one and a half year from the Parliament, also plans to nationalize the largest telecommunication company of the country and the basic oil actives belonging foreigners that has forced observers to expect construction in Venezuela command economy of socialist type.
AES has paid 1, 6 billion dollars for Electricidad de Caracas, and then has invested 600 million dollars more within six years in it. Nevertheless, the President of AES considers that nationalization has been lead according to laws of Venezuela and was a “fair” process.
Electricidad de Caracas, the power-spreading company serving the capital of the country, did not raise tariffs on demand of the government, despite of two-place inflation. The company also has had great losses because of the scale illegal connections to its network in the poorest areas of the city.

Due to the resume of the message concerning changes of the climate, made up by the world leading scientists, people have already made such a big harm of an atmosphere so, that the effects of global warming are to continue within 1 000 years and even more.
According to the results of the report the world is being heating up so rapidly that it in the nearest future more frequent waves of a heat, droughts and storms (stronger typhoons and hurricanes) are surely “guaranteed“ to our planet. The scientists say that the last 50-year period was the hottest one in at least last 1 300 years.
Here is a brief script on how the climate can change during the 21st century:
- The sea ice will be compressed both in Arctic regions and in Antarctic continents, and by the end of the century it is likely to almost completely disappear;
- The storms and the heat would provoke an intense sedimentation and finally lead to droughts;
-Hurricanes will become less, but those ones that would remain, would be very powerful;
- The ocean currents will be slowed down up to 25%. Nevertheless, this fact, unlike others, is not proved yet;
- The average temperatures in 2090-2099, possibly, will be 1.7 degrees to 4 degrees higher, in comparison with the period of 1980-1999;
- The further process of global warming would destroy the Greenland ice cover; in its turn, melting of the Antarctic and Greenland ice cover would lead to the rise of general sea level that would put under the threat the existence of some countries.

Russia hopes for the more predicted foreign policy of EU and the conclusion of the long-term contract on partnership and cooperation between two parties. Sergey Lavrov, the chapter of the Ministry of Foreign Affairs of Russia, has declared about this on Wednesday.
The minister at anniversary conference of the Russian union of industrialists and businessmen has told that he hoped that EU could develop such formula of business management which would not do the attitude with world around, including with Russia, the hostage of any internal problems.
He has also expressed a hope, that the new contract of Russia and the European Union about partnership and cooperation would be long-termed. The minister has also told the new contract would be legally obligator one, more capacious, and would be accompanied by sectoral agreements in which those principles which contain in the contract would be deciphered.
As he said, in the new base of contract between Russia and EU it is necessary to reflect qualitative changes as in attitudes of two parties, and what have occurred in Russia. Lavrov has also noted, that Russia is interested to see the EU as a united, as much as possible predicted and not held down by internal contradictions partner.
Lately, because of discrimination measures concerning the Russian companies 13 transactions on purchase of actives or merge for the sum of 50 billion dollars have been broken abroad. Lavrov has declared that it is necessary to struggle with this, and Russia and the EU will do it together. The minister has also noted that this shows the attitude to the Russian business in the Europe which is perceived as the strong competitor.

The “Transneft” company has approved the civil-engineering design of an oil pipeline to the Europe around of Belarus. The president of the company has informed mass-media about this.
The chief of “Transneft” has declared that they have made such decision and they will develop the Baltic pipeline system. He has also emphasized, that it is a question “of increase in carrying volume of the port terminal at 50 million tons of oil “which now passes nearby 75 million tons of oil a year.
According to the company’s management, the technical department has approved the declaration on intentions under the project; prospecting works on February, 12th should begin.
Of course the president of the company and his colleagues understand that the project of the new pipeline would cost a great sum of money, but it obviously is needed.
The chief of Minromenergo, according to whom “it is one of the variants of replacement of a direction of oil export″, has declared about the opportunity of increase in deliveries of oil the nearest 2-3 years in the Baltic direction up to 110 million tons. And the president of the Russian Federation V. Putin has informed that “Transneft” (under his assignment) has started development of the plan on expansion of transshipment terminals in Primorsk on 50 million tons. The Head of the state then has noted that Russia is measured to search for ways of a direct output on consumers of power resources in the Western Europe.
Let’s remind, that the conflict between Moscow and Minsk in a question of transit of oil and gas through territory of Belarus in the beginning of January 2007, has led to that deliveries of raw material in the countries of the Western Europe have been interrupted for 2 days. It was possible to renew them only after negotiations between the heads of the governments of two states.