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MOSCOW, Feb 21 (PRIME) -- With a high level of worn-out facilities and frequent accidents, the Russian power complex requires large-scale modernization estimated to cost over 11 trillion rubles by 2020. Experts claim that an absence of economic stimuli is the main obstacle for implementing the modernization and call for the development of clear investment return mechanisms for power companies, which are believed to be incapable of ensuring two thirds of the drafted modernization program with their own funds under current regulations. Experts also doubt the necessity of launching around 82 GW of new power capacities by 2020, saying the figure does not reflect the actual demand for power in Russia.

MOSCOW, Feb 20 (PRIME) -- The recent reduction of international roaming prices by major Russian mobile operators has already resulted in an increase in voice traffic generated by roaming users abroad. A sharp increase in traffic volumes may be also seen in June-August, when a great number of Russian tourist go abroad, some analysts said, adding that the increased traffic volume serves as evidence that roaming prices were previously unreasonably high and limited people’s need for communication. The mobile operators could have reduced roaming prices even earlier, but were not interested in losing revenue from this highly profitable business, analysts said, adding that the operators decided to sacrifice margins only after the regulators and the media entered a rather heated discussion of the problem of high roaming prices.

MOSCOW, Feb 14 (PRIME) -- The price of gas has caused much animosity between Russia and Ukraine since the dissolution of the Soviet Union and even led to the disruption of gas supplies to Europe in early 2009, leaving Europe without gas for nearly two weeks. In the hope of avoiding such disruptions in the future, the Russian government decided to diversify its gas routes to Europe through the Nord Stream and the South Stream transit systems, both of which incidentally bypass Ukraine. Among reasons for the new pipelines is Gazprom’s proclaimed hope to render the transit of natural gas to Europe safe, inciting the question of what exactly Russia perceives as the current threat to its natural gas transport. Ukraine hopes to renovate its pipelines and become a reliable and trusted European partner, animatedly inviting Russian support in its pro-European transformation. Russia, however, envisages other potential outcomes, namely involving the acquisition of Ukrainian pipelines or the merger of Naftogaz of Ukraine, Ukraine’s fuel and energy complex, and Gazprom. Ukraine and Russia have once again embarked on a tumultuous journey of contesting gas prices and volumes, making a peaceful resolution yet to be seen on the horizon.

MOSCOW, Feb 14 (PRIME) -- The widely discussed privatization of companies included into state-controlled IDGC Holding that could improve their operational efficiency is obviously beginning, as IDGC’s management announced plans to start uniting one of its subsidiaries with another company, while reducing its share to a less-than-controlling stake this year. Analysts, however, say that privatization is an unreasonable goal amid the current uncertainties over tariff regulations and are skeptical about the holding’s plans to unite companies, claiming this is not a real privatization. Analysts named Siberia IDGC, MOESK, and Urals IDGC among the first subsidiaries that could be sold, but note that investors are unlikely to pay a significant premium to the market price.

MOSCOW, Feb 13 (PRIME) -- The Russian government is seeking to make the country highly developed in terms of communications and IT by the end of the decade. The goals set for the communications and IT industry imply narrowing the gap between Russia and developed countries; however some of the goals are too optimistic, claim market analysts. Although the goals are technically reachable, the key problems are Russia’s huge territories and low population densities, which make the development of communications infrastructure in remote areas economically unreasonable, and the mentality of Russian people, especially that of the elderly and of those living in rural areas, who demonstrate reluctance to enjoy the opportunities offered, most particularly, by the Internet, analysts said.

MOSCOW, Feb 6 (PRIME) -- Major mobile operators, having recently agreed to unite their efforts in various spheres of development, including the construction of mobile network infrastructures and the study of radio frequency usages, plan to cooperate in the mobile commerce market, as well. The operators’ decision to cooperate on the rapidly growing mobile commerce market is likely to additionally accelerate the growth in mobile commerce transactions, analysts said, adding that this cooperation is beneficial for all the parties involved, as well as for their subscribers and providers of services paid for by subscribers. The mobile commerce market has good prospects for further growth, but the success of mobile majors’ cooperation is likely to depend on their actual projects in the future, some analysts said, noting that an example of unsuccessful mobile commerce cooperation is evident in Europe.

MOSCOW, Feb 1 (PRIME) -- Russia’s largest gold producer Polyus Gold, whose shareholders sought a merger with a large international gold mining company, may merge with smaller Russian precious metals producer Polymetal, which has already obtained primary listing in London, a target very much desired by Polyus Gold, but yet to be attained. Although a merger between Polyus Gold and Polymetal is only a rumor so far, some analysts see it as both beneficial and reasonable for both companies, while other analysts believe that no operating synergy is expected from the merger between the two companies, which have two different and remotely located deposits.

MOSCOW, Jan 31 (PRIME) -- The Russian government is tightening regulation in the electric power sector in light of the upcoming presidential elections, having announced that it reached an agreement for power prices to remain unchanged in January–February. Analysts say the move is not very significant for the industry, as power prices were not expected to grow on the free market in early 2012 due to stable gas prices. The financial results of power producers are unlikely to be affected much as a result of the government’s decision, but investor attitude could be worsened towards the sector, analysts said. It is also unclear as of yet whether this enhanced regulation will be applied only during the pre-election period or if the policy will be gradually implemented in hopes of sorting out the current chaos in the power industry.

MOSCOW, Jan 30 (PRIME) -- After several months of delay caused by the crash of three satellites in late 2010, Russia’s Global Navigation Satellite System (GLONASS) finally started full-scale operations in December 2011. GLONASS has thus become the world’s second full-scale global navigation system after the U.S. Global Positioning System (GPS), and gained a serious advantage over the projected European and Chinese navigation systems on its way to becoming widely used across the world, some analysts said, while others noted that all global navigation systems are likely to complement each other, rather than compete. GLONASS is expected to promote the development of a number of industries and give the opportunity for a number of small and medium-sized companies to grow, analysts said, adding that these companies may provide various services based on navigation technologies and produce GLONASS-supporting equipment.

MOSCOW, Jan 24 (PRIME) -- Large Russian power consumers have recently aspired to enhance the development of their own power capacities, claiming that the impetus for this move was the excessive growth of power prices recorded in early 2011. Analysts expect this trend to cause a significant growth in the cost of power for remaining consumers on the market and lessen the operational burden on power plants, but believe the government will take measures to curb this tendency.

MOSCOW, Jan 23 (PRIME) -- Given that saturation is far from being reached, Russia’s pay TV market is showing decent growth rates both in terms of revenue and subscriber base. The market has recently been driven particularly by IPTV (TV via Internet Protocol) services, which are still in the early stage of development and have a chance to continue growing rapidly this year, according to analysts. IPTV has technological advantages over other pay TV technologies, but they have not yet been widely appreciated by consumers, while marketing tools are the key driver for growth, analysts said, adding that there are a number of factors that IPTV operators have to tackle on their way to promote the service.

MOSCOW, Jan 17 (PRIME) -- Despite the great uncertainty currently surrounding the global economy and reflected in economic projections, which have already placed Russian metals and mining stocks down significantly, the 2012 operating results of domestic metallurgy companies are expected to remain quite stable.. Although financial problems in Europe may lead to some decline in demand for products of Russian metallurgy companies, this decline is expected to be offset by stable domestic demand and a possible increase in demand in Asia, analysts said. Among metallurgy companies, precious metals producers are likely to show the biggest growth in production volumes and sales, thanks to the expected launch of new mines and the increasing price of gold, which is considered a safe asset amid the turbulence on financial markets, analysts said.

MOSCOW, Jan 16 (PRIME) -- As analysts said one year ago, intensified consolidation was one of the key trends on the Russian telecommunications market in 2011 with the key event being the integration of seven interregional wireline operators into long-distance operator Rostelecom. The consolidation of the market is not yet complete, analysts now say, adding that Rostelecom and three major mobile operators are likely to keep purchasing regional operators in 2012, as they did throughout last year. One of the key events expected in 2012 is the forthcoming allocation of frequencies to provide long-awaited fourth generation (4G) wireless services via the Long Term Evolution (LTE) technology, but this is unlikely to have any serious effect on the market already in 2012, as operators are unlikely to be able to launch full-scale LTE operations by the end of the year, analysts said.