A long-term EBRD loan of US$ 100 million to FESCO, one of the leading integrated transportation operators in the Russian market, will fund the first phase modernisation of commercial infrastructure in the port of Vladivostok and other priority logistics projects. The Vladivostok project is vital for expanding freight traffic along international transit routes running through the Russian Far East.
On 12 August 2000, the Russian Oscar II class nuclear submarine Kursk sank in the Barents Sea after an explosion. Despite a rescue attempt by British and Norwegian teams, which was severely delayed due to the Russians refusing them access, all 118 sailors and officers aboard Kursk died. Putin was in his first presidential term and on vacation on the Black Sea. He was slow to react and take control of the situation believing the navy’s assurances. One of the enduring images of that period was Putin on Larry King Live programme on CNN. Asked “What happened to the Kursk”, the Russian President gave a tight smile and said, “It sank.”
Vladivostok Air Deputy General Director Dmitry Tyshchuk has announced that the airline plans to resume its seasonal summer service between Anchorage, Alaska, and Petropavlovsk-Kamchatskiy, Russia, in July, 2012. During this first season, the service will operate once per week from mid-July until mid-September. It is hoped a successful 2012 season will justify expansion of the service in 2013.
Domestic demand continues to expand sustainably in October. Household consumption growth has seemingly accelerated in y-o-y terms on the back of slowing inflation and 8.8% retail sales growth during the month, bringing the 10m11 retail figure to 6.5%. Investment was up a respectable 8.6% y-o-y (5.3% over 10m11).