In Business News: importer RWE Transgas to try and renegotiate disadvantageous contract with Russian gas supplier; the Czech National Bank revises growth numbers downwards; new scientific facilities in the Czech Republic to see 14 billion crowns in European funds; Czech exporters unsatisfied with ministry plans to extend existing support network.
RWE Transgas to try and renegotiate disadvantageous contract with Russian gas supplier
Photo: archive of Radio Prague
RWE Transgas, the biggest Czech importer and seller of natural gas covering more than half of the local market, has launched arbitration proceedings to try and renegotiate a disadvantageous and expensive long-term supply contract from Russia’s Gazprom. The decision follows the announcement on Thursday of a major drop in profit last year. The slump amounts to 4.85 billion crowns in 2010 compared to a 15.89 billion profit in 2009. The most significant turnaround was tied to gas trading. In 2010, demand on the gas market dropped significantly due in part to the economic crisis, as well as US shale gas suppliers meeting demands on key markets. RWE Transgas’ CEO Martin Herrmann has said he hopes an agreement with Gazprom can be reached at the latest by the end of 2012.
Police investigate possible bribery in sale of Czech coal company
Photo: Barbora Kmentová
The anti-corruption police have began an investigation into possible bribery of former Czech deputy industry and trade minister Robert Sýkora over the sale of the MUS coal-mining company by the state. The Swiss general prosecutor's office has been investigating the transactions in the case for a number of years. Its representatives have told the paper Mladá fronta Dnes they are preparing the indictment. The police are investigating people close to former Social Democrat prime minister Stanislav Gross in connection with the case. Last year, Swiss authorities asked the High State Attorney’s Office in Prague for help in their investigation.
CNB revises growth numbers downwards
Czech National Bank, photo: Štěpánka Budková
The Czech National Bank said Thursday that it had revised its growth forecast for 2011-2012 down with regards to austerity measures planned by the centre-right cabinet, and kept interest rates steady at record-low levels. The bank now predicts GDP will grow by 1.5 percent this year against a previously forecast 1.6 percent, and by 2.8 percent in 2012 instead of 3.0 percent. This year, economic growth will slow down due to fiscal restriction, slower investment and slower growth in foreign economic activity the bank has said. It stressed that more robust growth would resume in 2012. The centre-right government said last month it would pin its future on badly-needed health and pension reforms accompanied by spending cuts designed to bring the country's public finances back on track.
Scientific facilities to be financed by European funds
Photo: Radio Prague
New scientific facilities to be built in the Czech Republic get 14 billion crowns from European funds, a decision expected by the EU by the end of the summer: five research facilities to be built in the areas of Prague, Brno, and Ostrava would receive the funding if the expected decision goes ahead. The funds are to go towards the construction of a new supercomputer, a biomedical centre developing artificial heart valves and other technology, and a facility aimed at developing a new generation of safer and more effective nuclear reactors.
Czech Industry and Trade Ministry to extend export-support network
The Czech Industry and Trade Ministry is aiming to extend its network of offices in foreign countries promoting Czech exports. Minister Milan Kocourek told reporters this week that the existing network of ten centres will be extended by five to cover all regions of the world. The country’s Foreign Ministry recently stopped hosting pro-export offices in their own facilities, and the economic agenda should be managed by diplomats. The move has not satisfied Czech exporters who were pushing for an independent export-supporting network.
