Estonia wants to adjust to the Finish living standards
Hungary signs an agreement with Gazprom
Serbia will probably join the Turkish Stream Project. Russia has not yet confirmed it but SEENews quotes Serbian Infrastructure Minister Zorana Mihajlovic saying that Serbia „needs a second route for natural gas imports to ensure the stability of its energy system”.
The Turkish Stream (or the Turk Stream) is a Russian project to construct a pipeline transporting Russian gas to Turkey and the European countries across the Black Sea. It’s capacity will be 63 billion cubic meters. The project was announced by Russian President Vladimir Putin in late 2014. It accelerated after the other Russian project, South Stream, has been blocked by the European Commission.
In Serbia 82 per cent of gas is imported from Russia (through a pipeline that crosses Hungary and Ukraine). The other 18 per cent of the capacity needed comes from domestic resources. Lately, Serbia has signed a memorandum of understanding with Bulgaria. Upon the agreement, 150 km long pipeline, linking the two countries, will be constructed by 2019. It will start operating in 2020. But Serbian officials claim they need more. “We know that we are unstable in terms of natural gas and we have economic growth. Therefore, we need to think about the demand for energy products,” said Mihajlovic.
The Baltic Course reports on the findings of the research of the Bank of Estonia and international organizations, according to which Estonia should reach living standard of Finland in 15-20 years. As reported, today the average Estonian earn up to 40 per cent of Finn’s wage. Experts claim if Estonian economic growth per capita remain at the level of 3 per cent, and Finland will keep the pace of the last 20 years, namely 1.7 per cent, then the countries will meet in terms of the living standard in 30 years. At the same time exerts claim it will be difficult for Estonia to keep the 3 per cent pace.
“Comparing long-term forecasts, a large role is played by the question which growth scenario will be introduced in the next few years. For example, if OECD’s preconditions for long-term economic growth were to be adapted to IMF’s forecast, Estonia should catch up with Finland by 2060 in terms of living standards. That would not happen if OECD’s own short-term forecast is used. However, it must definitely not be forgotten that forecasts made for ten, twenty or fifty years cannot be that accurate,” Kaspar Oja from the Bank of Estonia comments.
Budapest Business Journal informs that Hungary has signed an agreement on developing „a new gas delivery route for Russian natural gas”. The agreement was signed by Péter Szijjártó, Hungarian Minister of Foreign Affairs and Trade, and Alexey Miller, the CEO of Gazprom. As Szijjártó explains, his country’s annual gas consumption reaches 9 billion cubic meters. „Despite communications hypocrisy, European demand for Russian gas is increasing dramatically, said Szijjártó. “Today we have taken a great step forward with relation to energy security, national security and the economy alike,” he added.
What’s up in indexes
BET (of Bucharest) decreased from 8,111.88 index points Thursday, July 6th to 8,044 index points Friday, July 7th. It’s down 0.83 per cent d/d and up 24.18 per cent y/y.
BUX (of Budapest) decreased from 35,615.00 index points Thursday, July 6th to 35,503.69 index points Friday, July 7th. It’s down 0.31 per cent d/d and up 31.64 per cent y/y.
Friday, July 7th was a non-trading day at the bourse Zagreb. CROBEX (of Zagreb) closed at 1,888.57 index points Thursday, July 6th.
OMXR (of Riga) increased from 965.56 index points Thursday, July 6th to 971.76 index points Friday, July 7th. It’s up 0.64 per cent d/d and up 53.67 per cent y/y.
OMXT (of Tallinn) increased from 1,158.10 index points Thursday, July 6th to 1,171.03 index points Friday, July 7th. It’s up 1.12 per cent d/d and up 18.77 per cent y/y.
OMXV (of Vilnius) increased from 602.40 index points Wednesday, July 5th to 602.53 index points Friday, July 7th. It’s up 0.02 per cent d/d and up 15.97 per cent y/y.
PX (of Prague) increased from 986.78 index points Tuesday, July 4th to 992.18 index points Friday, July 7th. It’s up 0.55 per cent d/d and up 21.80 per cent y/y.
SAX (of Bratislava) increased from 328.61 index points Thursday, July 6th to 334.51 index points Friday, July 7th. It’s up 1.80 per cent d/d and up 7.99 per cent y/y.
SOFIX (of Sofia) decreased from 711.12 index points Thursday, July 6th to 707.96 index points Friday, July 7th. It’s down 0.44 per cent d/d and up 55.92 per cent y/y.
UX (of Kyiv) decreased from 1,040.20 index points Thursday, July 6th to 1,038.67 index points Friday, July 7th. It’s down 0.15 per cent d/d and up 47.45 per cent y/y.
WIG20 (of Warsaw) decreased from 2,300.74 index points Thursday, July 6th to 2,295.82 index points Friday, July 7th. It’s down 0.21 per cent d/d and up 33.98 per cent y/y.