Arctic companies facing financial hit from global warming

RUSSIA / FSU POLITICS - In Brief 24 Jul 2020 by Alex Teddy
On July 23 a leaked confidential Morgan Stanley report on Russian Arctic companies was published in Vedomosti. It said that because permafrost is melting in the Arctic companies operating there face grave difficulties. Their infrastructure is jeopardized. The melting means that soil becomes unstable. Buildings and pipes are likely to collapse. Novatek, Alrosa, Norilsk Nickel and Gazprom are all at risk. Carbon gases and methane are released by the melting as global temperatures rise. People will need less heating. 60% of Russia's landmass is permafrost. Temperatures in the Arctic have risen three and a half times faster than the global average since 2000.The Arctic contains 90% of Russia's gas and diamonds, 30% of its oil and all of its palladium. Gazprom had predicted a free cash flow of USD 8.4 billion for 2022. This will likely to be cut ti about USD 4 billion. Nornickel faces a similar fall. These companies will have to spend huge amounts renovating their buildings and pipelines so they withstand the thaw.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.