EU grants Croatia EUR4.825m and Bulgaria EUR850,000
Ukraine buys cheaper gas in Europe
According to Romania Insider “The Romanians’ appetite for real estate transactions has increased.” The portal reports on a recent study (conducted between November 12th and December 10th, 2015) of a local real estate website Imobiliare.ro that shows the potential of the local residential market. According to the study, more than 40 per cent of respondents declared an active real estate need in 2015. In 2014 the same was declared by 35.9 per cent. “The growth was almost exclusively generated by the increased interest in buying real estate while the rental segment remained relatively stable,” Romania Insider writes. The study also shows that more than half of those who already have a real estate need want to buy a property, 23.2 per cent wish to sell, 11 per cent want to offer a property for rent, and 10.6 per cent are interested in renting. About 43.5 per cent of the respondents expect to solve their real estate problem in a period of over six months but 19.7 per cent have an urgent real estate need and would like to solve it in less than a month. The respondents also enumerated the most important criteria, such as the price (76.9 per cent), the location (53.7 per cent) and the facilities (36.6 per cent).
Plinacro – a Croatian state-owned company that serves as a gas transmission system operator will get funding of EUR4.825m from the European Union to finance a project of constructing a gas interconnector with Slovenia. The decision was announced by the European Commission on January 19th. The project Interconnection CRO/SLO envisions constructing of the gas interconnector that leads from Bosiljevo (Croatia, Karlovac County) through Karlovac, Lucko and Zabok, to Rogatec (Slovenia, Savinja Region). Its capacity will be 5.5 bcm/y (the already existing gas pipeline is up to 2.5 bcm/y capacity). The length of the pipelines will be:
- from Bosiljevo to Karlovac: 38 km,
- from Karlovac to Lučko: 33 km,
- from Lučko to Zabok: 43 km,
- from Zabok to Rogatec: 24 km.
The total expected cost of the project is EUR107m.
The grant from the European Commission will cover the cost of studies on the first stage of the project. It is a part of a Connecting Europe Facility program, CEF, (with a total budget of EUR5.1bn for the period 2014-2020), for boosting the key trans-European energy infrastructure projects. The EC has identified several strategic Trans-European energy infrastructure projects and their implementation by 2020 is essential for achieving the EU energy and climate policy objectives. “The selected projects will increase energy security and help finish the isolation of member states from EU-wide energy networks, while contributing to the completion of a European energy market and the integration of renewables into the electricity grid, the Commission said,” SEENews Business Wire reports.
Under the same programme, Connecting Europe Facility (CEF), Bulgaria will receive an EU grant of EUR850,000 for “the rehabilitation, modernization and expansion of its gas transmission system.” The whole budget for studies and work related to a construction of gas interconnections between Bulgaria, Romania, Hungary and Austria reaches EUR180m. Novinite.com reports that this “is an important development for the EU gas market as will allow gas from the Caspian region and other potential sources, including LNG, to reach Central Europe.”
The prices of natural gas from the European companies are cheaper for Ukraine than from the Russian Gazprom. Moreover, as trading with the EU companies is boosted by the European Bank for Reconstruction and Development (EBRD). Interfax reports that Ukraine is buying natural gas in Europe at approx. USD190 per 1,000 cubic meters. The price offered by Gazprom in the first quarter of 2016 is USD212. “We are buying [gas] from the European direction, where it is cheaper. The latest transactions were approximately at USD190 or perhaps slightly lower. We see that this price is significantly lower than what Gazprom has offered us,” Interfax quotes Volodymyr Demchyshyn, Ukrainian Energy and Coal Industry Minister. “Naftogaz Ukrainy has concluded contracts with Noble Clean Fuels Limited, Engie SA, Axpo Trading AG, E.ON Global Commodities SE, and Eni trading & shipping SpA for 1.7 billion cubic meters of gas to be delivered from December 2015 to March 2016. The contract is to be funded by the European Bank for Reconstruction and Development (EBRD). The price varies from USD188 to USD211 per 1,000 cubic meters,” Interfax wrote.
What’s up in indexes?
BUX (of Budapest) increased from 23179.43 index points Monday, January 18th to 23214.77 index points Tuesday, January 19th. So it’s up 0.15 per cent d/d. But at the same time it dropped by 2.95 from year-end.
BET (of Bucharest Stock Exchange) was up 2.60 per cent on Tuesday, January 19th. It climbed from 6018.98 index points Monday to 6175.52 index points Tuesday. From year-end it dropped by 11.83 per cent.
PX (of Prague) grew by 0.71 per cent – increasing from 867.85 index points Monday, January 18th to 873.98 index points Tuesday, January 19th. From year-end it lost 8.61 per cent.
WIG20 (of Warsaw) grew after January’s losses. On Tuesday it was up 0.79 per cent – it climbed from 1679.22 index points Monday to 1692.52 index points Tuesday, January 19th. From year-end it dropped by 8.96 per cent.
OMXT (of Tallinn) closed at 880.13 index points, dropping by 0.47 per cent on Tuesday. The day before it closed at 884.33 index points. From year-end it lost 2.10 per cent.
OMXR (of Riga) fell from 595.30 index points Monday, January 18th to 594.17 index points Tuesday, January 19th. So it lost 0.19 per cent d/d and 0.03 per cent from year-end.
OMXV (of Vilnius) closed at 483.67 index points Wednesday, January 19th – the result was the same as on Monday, January 18th. From year-end it dropped by 0.48 per cent.
SAX (of Bratislava) closed at 0.00 per cent change. On Tuesday it was 303.23 index points, same as on Monday. And from year-end it’s up 3.72 per cent.
SOFIX (of Sofia) decreased from 446.11 index points Monday, January 18th to 445.80 index points Tuesday, January 19th. So it dropped by 0.07 per cent d/d and by 3.28 per cent from year-end.
UX (of Kyiv) lost 1.35 per cent on Tuesday, January 19th closing at 649.00. The day before it closed at 657.90 index points. From year-end the index dropped by 5.37 per cent.
CROBEX (of Zagreb Stock Exchange) was up 1.08 per cent – increasing from 1576.47 index points Monday, January 18th to 1593.48 index points Tuesday, January 19th. From year-end it lost 5.69 per cent.