Feb .
No. 51

  USRCC Business Newsletter
6th Annual Ambassador Speaker Series- February 11, 2016

The  6th Annual Ambassador Speaker Series Luncheon provided sponsors and guests with the unique opportunity to meet with and interact with His Excellency, Sergey I. Kislyak, Ambassador of the Russian Federation to the United States. Ambassador Kislyak provided guests with a direct update about US-Russia relations, sanctions, the economy, challenges and opportunities.  More than 150 guests were in attendance and came prepared with candid questions for His Excellency. 

Special thanks to our sponsors for making this event so successful. ExxonMobil, LUKOIL, Shell and TMK IPSCO were gold sponsors; Chevron and Gazprom were silver sponsors. 

Stay tuned for more event photos!
USRCC 2016 Membership

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 USRCC Trade Mission to Russia
 June 2016

With a population of more than 143 million people and rapidly growing infrastructure, Russia presents U.S. companies with promising opportunity. The U.S.-Russia Chamber of Commerce (USRCC) invites you to participate in a Trade mission to the  St. Petersburg International Economic Forum and Moscow. Participants will have an opportunity to meet Russian government officials and some of the most influential leaders in U.S.-Russia trade and investment relations. The USRCC will coordinate private meetings, an exclusive CEO Roundtable and introductions, in addition to attending the St. Petersburg International Economic Forum (SPEIF).
Participating companies will gain market insights, make industry contacts, solidify business strategies, find business partners, and advance specific projects with the goal of increasing U.S. trade and investment to Russia. 

For more details about the Trade Mission please click here or contact us


Thanks for stopping by our booth at the NAPE Summit!

Member News
LUKOIL proved hydrocarbon reserves total 16.6 billion barrels of oil equivalent

Oilvoice.com, February 10, 2016: PJSC LUKOIL finished an evaluation and independent audit of its oil and gas reserves as of December 31, 2015. The evaluation was performed in accordance with the US Securities and Exchange Commission (SEC) standards until the economic limit of commercial production is reached.
The audit results by Miller and Lents, a US firm, suggest that the Company's proved hydrocarbon reserves as of December 31, 2015 came to 16.6 billion barrels of oil equivalent (boe), including 12.6 billion barrels (bbl) of oil and 23.8 trillion cubic feet of gas.*
The evaluation was performed given that the situation on the global product and raw material markets had deteriorated drastically. According to the standards, the Company's reserves were estimated based on the average oil quotations for 12 months of 2015, as of the 1st day of each month.   Read more...
The Week in Review 
Sanctions failed to take a bite out of Russia's oil patch: Fuel for Though

Oilvoice.com, February 9, 2016: International sanctions against Russia introduced in 2014 turned out not to be the bogeyman they first seemed to be, and could in fact have played a key role in helping the Russian oil sector to not only handle the sharp price drop over the last year and a half, but make the industry more efficient in the long run.
When sanctions were implemented targeting the Russian oil sector's access to Western financing and key Arctic, shale and deepwater technology, analysts saw them as major blow.
Forecasters speculated that Russian oil companies would run into problems trying to maintain drill rates, service loans in foreign currencies, and could struggle to maintain output. At the time the International Energy Agency estimated Russia's crude production would fall by 80,000 b/d in 2015. And these forecasts came when oil was still trading at over $100/b.  Read more...
Russia to remain world's largest exporter of primary energy resources - BP's Outlook

TAAS.ru, February 10, 2016: MOSCOW, February 10. /TASS/. The global demand for energy is expected to increase by 34% between 2014 and 2035, or by an average of 1.4% per year. The US will achieve oil self-sufficiency by 2030 and Russia will remain the world's largest exporter of primary energy resources and second largest oil and gas producer, according to the 2016 edition of the BP Energy Outlook, published on Wednesday.
The company notes that lower-carbon fuels will be growing faster than carbon-intense fuels as the world begins to transition to a lower-carbon future.
Despite current weakness in global energy markets and the slowdown in China's growth, demand for energy will continue to grow over the next 20 years and beyond as the world economy expands and more energy is required to power the higher level of activity.   Read more...

 Please click here:  BP Energy Outlook

Russia May Require to Use Reserves If Oil Prices 
Remain at $30 Per Barrel

Sputnik.com, February 6, 2016: According to Russia's finance minister, Moscow may resort to using reserves should the oil prices remain at the level of $30 per barrel.
MOSCOW (Sputnik) - A prolonged period of oil prices remaining around the  $30 per barrel mark may force Russia to spend some of its financial reserves, Russia's Finance Minister Anton Siluanov said Saturday.
Oil prices have fluctuated around $35 per barrel since late January, after rebounding from the January 20 price of just over $28 per barrel, which was the lowest level since 2003.
A price of $30 per barrel leaves Russia with a revenue shortfall of some 2 to 2.5 trillion rubles ($26-32 billion), the minister added. 
Rosneft and Statoil Commence Well Testing at the North-Komsomolskoye Field

Rosneft.com, February 8, 2016: Rosneft and Statoil commenced testing of two production wells of highly viscous oil of the PK1 layer of the North-Komsomolskoye field.
The companies are implementing pilot operation of the horizontal wells constructed using best practices related to inflow control and consolidation of entrained solids.  Average starting flowrate amounts to75 t per day, whilst oil production potential is being estimated over 100 t per day for one well. Such results demonstrate strong synergy effect of the experience and expertise of Rosneft and Statoil.
During the well testing the companies are planning to undertake a complex of studies including hydrodynamic and tracer studies. Also, laboratory investigations of the surface oil samples will be implemented.  Read more...
Russia, Austria to Expand Gas Cooperation

Strategic-culture.org, February 9, 2016: Despite the European Commission's stern warnings, Russia's share of European energy market will grow in the coming years. According to Bloomberg's experts, gas exports to Turkey and the EU have reached 162.6 billion cubic meters (5.7 trillion cubic feet) this year, up from about 159 billion in 2015 and 161.5 billion (then record high) in 2013.
Supplies are forecast to reach 166.1 billion cubic meters in 2017, and 166.3 billion in 2018. Most of the increase will account for the Nord Stream gas pipeline stretching from Russia to Germany under the Baltic Sea. 
Exports of Russian gas to the 'far abroad' increased by 8 percent in 2015 (compared with the previous year) to reach 159.4 billion m3, Gazprom CEO Alexei Miller  said  January 11.  Read more...
Rosneft and Pietro Barbaro to jointly enter global shipping markets

Oilvoice.com, February 11, 2016: Rosneft and Pietro Barbaro S.p.A. signed a Memorandum of Understanding with the scope of creating a Joint Venture (JV) in the area of international shipping.
The signed document envisages the performance by working groups of the companies of a joint analysis of potential formats of the JV's organization. The parties highly value the prospects of the implementation of the projects, taking into consideration the prominent synergetic effect of such an alliance in the area of international shipping of oil and oil products: Rosneft is one of the global leaders in the area of hydrocarbon production and refining, whilst Pietro Barbaro is a long-standing Rosneft partner and a leading company in the area of tanker shipping, holding an own fleet and possessing extensive capabilities in the area of hydrocarbon logistics and storage.
Russia Likely to Lead in Wheat Exports Over
Next Decade - USDA

Sputnik.com, February 9, 2016: US Department of Agriculture Economist Ed Allen claims that Russia's emergence as a global leader in wheat exports is expected to continue for at least the next decade
WASHINGTON (Sputnik) - Russia's emergence as a global leader in  wheat exports is expected to continue for at least the next decade, US Department of Agriculture (USDA) Economist Ed Allen told Sputnik on Monday.
"The baseline continues to project that the growth in wheat exports will be stronger in Europe and Russia than in the United States, and part of that is the continued strength of the US dollar," Allen said, referring to the latest ten-year projection by the USDA.
According to USDA statistics, projected Russian wheat exports will lead the world this year with 23.5 million metric tons. By comparison, the United States is expected to export 21.8 million tons, a 44-year low.    Read more...
Small businesses taking off in Russia, thanks to the crisis

Rbth.com, February 8, 2016: While for many in Russia the financial crisis has become a byword for austerity and limited opportunity, for a number of determined entrepreneurs it has been a voyage of discovery.
"I'd be better off selling 200 cups of coffee for 40 cents, than only 10, but for $3 each," says barista Filipp Leites, a 2011 World of Coffee champion.
Leites runs Pravda Coffee (Pravda Kofe), a coffee-house mini-chain that has four of its own and two franchise outlets in Moscow.
Leitnesa, who started out selling his own roasted beans, was clearly on trend, as the number of coffee houses has soared in Russia during the crisis. According to the 2GIS service's analytical department, the number of coffee outlets increased in 2015 by 28.7 percent in Moscow and by 25.3 percent in St. Petersburg, with a visible increase in the number of kiosks and cafes in the two cities.   Read more...
Ural Airlines to develop international network at Samara airport

Atwonline.com, February 8, 2016: On April 29, Ural Airlines will launch weekly Airbus A320 service to Burgas (Bulgaria); on June 4, the carrier will start a weekly A320 service to Tivat (Montenegro).
According to the airport, Ural Airlines announced several Commonwealth of Independent States (CIS) destinations from Kurumoch, including Dushanbe (Tajikistan), Osh (Kyrgyzstan) and Yerevan (Armenia).
Previously,  Pulkovo Airport  announced  Ural Airlines has been the most active in developing its network from Saint Petersburg. The carrier added 10 new routes in 2015, bringing its total network in Pulkovo to 19 destinations.   Read more...
Glonass-M satellite brought to intermediate orbit - Russian Defense Ministry

TAAS.com, February 7, 2016: MOSCOW, February 7. /TASS/. The spacehead of Soyuz-2.1b rocket vehicle comprising the Frigate upper stage and the Glonass-M satellite separated from the third stage of the space vehicle in due time [03.31 am], Russian Defense Ministry told TASS on Sunday.
"It will take several hours for the Frigate upper stage to bring the Glonass-M spacecraft to the intended orbit," the Defense Ministry added.
The Soyuz-2.1b rocket vehicle was launched from Plesetsk space port in the Archangelsk Region at 03.21 Moscow time. All the pre-launch operations and the rocket launch were normal. Ground-based automatic control aids monitored the space vehicle launch and flight," the Defense Ministry said.  Read more...
US-Russia Related News in Russian

Россия с 15 февраля запретит ввоз кукурузы и сои из США

Interfax.ru, 10 февраля, 2016: Москва. 10 февраля. INTERFAX.RU - Россия 15 февраля вводит запрет на ввоз кукурузы и сои из США из-за невыполнения российских фитосанитарных требований.
"После проведения во вторник вечером переговоров с американскими специалистами руководитель Россельхознадзора Сергей Данкверт провел в среду утром совещание, на котором поручено подготовить документы о запрете поставок кукурузы и сои с 15 февраля", - сообщил "Интерфаксу" представитель Россельхознадзора Алексей Алексеенко.
По его словам, все необходимые для введения запрета документы будут подготовлены к вечеру.   Читать далее....
USRCC Executive Partners


The USRCC is looking for new team members!

The USRCC is now looking for interns for its Houston, Chicago and  New York Office s.  To learn more about the position please click here or contact us directly at info@usrussiacc.org or call 713.429.4680
The information contained in this newsletter is provided for general information purposes only and does not constitute legal or other professional advice on any subject matter. USRCC does not accept any responsibility for any loss that may arise from reliance on information contained in this newsletter. The views and opinions expressed in this publication are those of the authors. They do not reflect the opinions or views of the USRCC or its members.  Links within this newsletter lead to other websites, including those operated and maintained by third parties. The linked sites are not part of the USRCC newsletter. USRCC includes these links solely as a convenience to the newsletter subscribers, and the presence of such links does not imply a responsibility for the linked site and its operator. USRCC cannot certify the accuracy of the material provided by the original  source .
The U.S.-Russia Chamber of Commerce (USRCC)  is  a 501(c)(6) no t for  profit  corporation with its headquarters  in Houston, Texas,  and offices in the Midwest and the Northeast. The USRCC  was established in 2009 to promote  trade and investment  between  the  Russia n Federation  and the U.S. A.