The Russia Weekly Business Brief is a collection of the most important events reported last week by select open-source media platforms and governments in Eurasia.
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The Crimea Syndrome Spreads: The Azov/ MoLoChKa and Black/Ukrainian Sea
Dear BWR Shoeshiners and Barbers!
Takeaways from the Week
Drone Wars – Ukrainian drones struck a tanker at the Caspian Pipeline Consortium (CPC) terminal near Novorossiysk, grain cargo ships in the Sea of Azov, Wildberries warehouses, and refineries last week, underscoring a shift in the intensity of the war.
Economy – Reports are mounting about bank balance-sheet exposure as high rates and slow economic growth are resulting in higher loan default rates.
Technology – Russian state-affiliated apps (MAX) disappeared from the Apple and Google Play app stores.
This Week’s Five
Economics & Privatization
Russia’s Wartime Credit Boom Raises Bank Balance-Sheet Risk as Repayment Stress Builds [Medium]
The Moscow Times reports that Russian banks are restructuring corporate and consumer loans that would otherwise be considered in default. High interest rates, expiration of subsidiaries, and a slowing economy are straining small and medium-sized businesses’ ability to service existing loans.
Separately, Sberbank issued the first loan under a new Bank of Russia/MSP Corporation subsidized-lending program (10 mln RUB to a Nizhny Novgorod plastics maker), signaling that the state is already deploying rate relief to shore up SME borrowers.
Key Takeaways
The government has launched a new subsidized-rate working-capital loan through Sberbank. A Nizhny Novgorod plastics producer was the first recipient.
Sources: Moscow Times · Nezavisimaya Gazeta
Energy & Minerals
◆ LEAD STORY OF THE WEEK
Drone Strike on Tanker NELSA at CPC Terminal Threatens Kazakh Crude Export Artery [High]
Kazakhstan’s energy ministry confirmed that overnight on 19–20 July, a UAV struck the tanker NELSA while it was loading at the Caspian Pipeline Consortium (CPC) marine terminal near Novorossiysk.
