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Press review: Holed-up militants make demands and Nord Stream 2 to be repurposed

Top stories from the Russian press on Friday, May 6th
Azovstal steel plant Peter Kovalev/TASS
Azovstal steel plant
© Peter Kovalev/TASS

Izvestia: What’s behind Azovstal militants’ latest bargaining ploy

The Kremlin said on May 5 that militants holed up in the Azovstal steel complex suggested they release civilians remaining in underground shelters in exchange for food. Moscow compared the move to the ways of terrorists in Syria and pointed out that humanitarian corridors from the plant continued to operate. Later that evening, a top UN official announced a new operation to evacuate civilians from the facility, Izvestia writes.

"The nationalists’ bargaining bid simply shows that civilians are no more than hostages for them," military expert Vladislav Shurygin told the newspaper.

"The people who managed to get out of there say that the militants did not tell them about any humanitarian corridors, while one of the reasons why an operation to storm the plant was suspended was to save civilian lives. And now, the nationalists are using them as human shields because they seek an agreement on their exit to any third country. However, Kiev would use their successful evacuation from Azovstal as a powerful propaganda weapon. That’s why they should be offered just one option, to surrender officially. It should be the only way for militants and the remaining Ukrainian troops to return home alive afterwards," Shurygin emphasized.

On Thursday, Kiev claimed that heavy fighting had begun at the steelworks complex. However, only small blockading groups of Russian forces and allies currently remain in the city of Mariupol, maintaining full fire control over the plant. Civilians and militants are almost completely safe in Soviet-built shelters but once the militants emerge from the underground, they become the target of air and missile strikes. This makes it possible to pressure the enemy into surrendering without losing troops. The other party is in despair and is only capable of making up stories of epic efforts to repel assaults on the plant in order to create the illusion of resistance, the expert explained.

 

Izvestia: OPEC+ decides to keep oil prices high

OPEC+’s decision to gradually increase oil output based on the previously reached agreements will help keep oil prices high, said experts interviewed by Izvestia. The group’s member states plan to raise oil production by 432,000 barrels per day in June 2022. Experts believe that the move will benefit Russia as it does not impose impossible obligations on the country in terms of production increase.

The main factor influencing oil prices is the balance of supply and demand, Freedom Finance Leading Analyst Natalya Milchakova pointed out. Oil demand is growing at the moment as the global economy is recovering from the coronavirus pandemic. Meanwhile, the oil supply is rather limited, primarily because of the sanctions against Russia, the expert added.

Given the geopolitical uncertainty, the predictability of OPEC+’s decisions prevents a sharp rise in prices, which would have been inevitable amid the European Union’s decisions, Executive Director of the Capital Market Department at Univer Capital Artem Tuzov emphasized. An even greater price surge would have made oil unaffordable for some customers, the expert noted.

Another factor that is holding back prices is the move by International Energy Agency (IEA) countries to release large amounts of oil from strategic reserves, Finam Analyst Alexander Potavin noted. The IEA announced the sales of 120 mln barrels of oil from reserves but it amounts to less than one percent of global consumption so it will be difficult to fully stop prices from rising in the coming months and oil can hit the $115-120 per barrel benchmark, BitRiver Financial Analyst Vladislav Antonov estimates.

 

Rossiyskaya Gazeta: Foreign companies looking for best options for their Russian businesses

Many foreign companies recently decided to fully or partially sell their Russian businesses or transfer them to local managers. Experts interviewed by Rossiyskaya Gazeta point out that many of the companies that are "leaving" Russia are doing it in a way that allows them to return and continue their operations in the country in the future.

The easiest way in the current situation is to sell the business. If a foreign company is determined to leave Russia for good and never return, it only needs to find a buyer. Another option is to sell Russian businesses to local management. Yesterday’s managers will be able to work as before after becoming the owners. "One more option is to transfer shares to the government or municipal authorities. This is a strategy that the Renault-Nissan-Mitsubishi alliance has chosen, transferring its assets to the Russian authorities. For Renault, Russia is the second largest market after France so the company seeks to retain the opportunity to return," Managing Partner at Odgers Berndtson Russia Roman Tyshkovsky explained.

According to the expert, there also are companies that are ready to shut down their Russian offices forever. Tyshkovsky noted that most of them were American firms who did not have local assets and whose Russian officers only distributed products.

Managing Partner at the Quattor Advisory consulting company Gaik Martirosyan emphasized that foreign players might also temporarily withdraw from Russian companies. In order to do that, they make option agreements that will allow them to repurchase their shares in Russian companies within a certain time limit and continue their activities as if nothing happened.

 

Rossiyskaya Gazeta: Nord Stream 2 to help supply gas to Russia’s northwest

Russia’s gas giant, Gazprom, has decided to use the idle land infrastructure of the Nord Stream 2 gas pipeline to ensure gas supplies to the country’s northwest, Rossiyskaya Gazeta writes, citing the company's press service.

The Nord Stream 2 gas pipeline, which runs from Russia through the Baltic Sea to Germany, was completed in September 2021. Both its lines were filled with technical gas and prepared to carry gas to Europe but supplies were never launched and the pipeline’s certification was suspended so the project is frozen for now. Gazprom pointed out that if Germany decided to put the maritime segment of Nord Stream 2 into operation, only one of its lines would be able to operate with 100% capacity, while it would be possible to use the second one for gas supplies to Europe no sooner than in 2028.

According to Deputy Director General of Russia’s National Energy Security Fund Alexey Grivach, Gazprom’s decision does not mean a move to abandon the Nord Stream 2 project. It is just that given Germany’s uncertainty over the timing for the gas pipeline’s launch, a decision has been made to use the Russian part of its infrastructure to boost domestic consumption, implement gasification projects and develop gas processing facilities.

A thing to note is that the reformatting of Nord Stream 2’s infrastructure will provide strong support to the Russian market and gasification efforts across the country. About 30 bln additional cubic meters of gas a year will be available for domestic consumption, Grivach noted. It is a significant amount that creates opportunities for the launch of new gas projects, the expert stressed.

 

Kommersant: Number of Russians seeking psychological counseling on the rise

Russians are facing increasing mental health issues amid global instability, specialists warn. Mentally healthy people have adapted to dealing with bad news but those prone to anxiety disorders risk becoming permanent patients, Kommersant notes.

According to psychologist Ekaterina Kozeikina, the number of people seeking psychological assistance has been on the rise for several months. "The overall instability in the world and a looming economic crisis are the reason. People are worried about potentially losing their jobs. It has become almost impossible to make long-term plans and it takes away any sense of stability. People are losing their way of life, which can trigger anxiety and even depression," Kozeikina said.

However, the psychologist pointed to the decreasing number of requests dealing with relations with partners, family and personal development. Some people have even decided to stop therapy because their initial goals are no longer relevant.

Chief Medical Officer at the Rosa Center for Psychiatry, Neurology and Narcology Vyacheslav Filashikhin points out that the number of patients with anxiety disorders has been growing for several years now. The specialist notes that being worried is a healthy mental reaction to a traumatic situation. "If there is no good news and bad news keeps coming, a healthy person will adapt. However, as for those with weak spots in their nervous system or hidden mental disorders, prolonged stress will cause depression, panic attacks and neuroses that will require assistance from a psychiatrist," Filashikhin explained.

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