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There are some good news from Italy, most recently: The country left a deep recession crisis behind. The economy is growing again, the situation on the labor market has eased, no more banks threatened to collapse due to large non-performing loans. At the same time, the country returns to an economic growth with appears to be much more sustainable than ever before. Italy fulfilled and over-fulfilled the targets of the European Energy and Climate strategy already, reducing the level of energy consumption by 24 percent compared to the 1990’s, “Renewables” account already for 18.6 percent of the energy mix.

These “good news” are no “bad news” for the gas industry, though. Finally, Italy pushes forward reforms of the gas distribution market and the diversification of gas supplies. The regulator is keen to develop a liquid gas hub for Southern Europe, which will lead to more competition on the domestic market and increased exports soon.

Creon Capital identified five directions of investments in Italy, which could provide attractive opportunities for the Fund and its partners. This is the conclusion of a study, which was presented by the Fund’s Business Development Director Florian Willershausen in Milan during a Wisdom conference on Small Scale LNG.

In particular, the Italian market is in need for additional gas storage facilities, Small Scale LNG terminals, new trading platforms, new LNG suppliers and operators, who are capable to provide solutions for peak shaving and emergency management.

Concrete investment projects are under discussion already. The presentation can be downloaded under this link. In case of questions don’t hesitate to contact us under: info@creoncapital.lu



According to the Unites Nations the world must invest 6 trillion USD annually infrastructure to reach growth and development goals globally. In this context investments in so called BRIC countries (Brazil, Russia, India, China) are of crucial important for sustainable development in the world. But how could such investments be financed efficiently?

“Financing BRIC infrastructure projects” was the topic of a conference in Luxembourg, and more than 250 experts attended on January 31th. Creon Capital sponsored the event in the city’s Philharmonie, which was hosted by LPEA and the China, Russia, Brazil and Indian business chambers in Luxembourg. The country’s infrastructure minister Francois Bausch claimed that states must set clear goals how to curb the consumption of resources, because “a goal without a plan is just a wish”. Among the main speakers was also Julie Becker, an executive committee member of Luxembourg stock exchange. She explained how Green bonds work and how they could push sustainable development.

Creon Capital’s Director Florian Willershausen took part in a panel discussion on infrastructure in BRIC countries. In contradiction to public perception of Russia, he pointed out, it’s possible for foreign companies to participate in large infrastructure projects without corruption or trouble with local authorities. “But you need a trustworthy partner on the ground, who helps you to understand the market”, Willershausen said and added: If companies structure their direct or investments or project financing via Luxembourg, this could significantly reduce the risks.

Please have a look to the pictures:

The panelists on BRIC infrastructure investments (from the left): Creon’s Florian Willershausen, Fernando Santiago (Chenut Oliviera), Sunita Lukkhoo (EIB), moderator Sascha Bremer (Luxembourg for Finance), Zhang Chi (China Three Gorges), Marcus Peter (GSK) and Nick Tabone (Deloitte).
Florian Willershausen is Creon Capital’s Director for Business Development, Marketing and Communications.

 

 

 

Investments in Russia turned out to be an important topic in the panel discussion in BRIC countries.


Creon Group, the initiator and general partner of Creon Capital and its Fund’s, recently published a new Corporate Presentation. The document, which is currently available in English, Russian and German language, gives you a better understanding of the Group’s achievements in the past 16 years. Founded by Dr. Fares Kilzie in 2002, the company grew from a small provider of market intelligence for Oil and Gas Downstream topics to a full-scale consulting and management company in Russia.

Here you may download the Group’s Corporate presentation:

>>> LINK  to the English version

>>> Ссылка на русскую версию

>>> LINK zur deutschen Version

The Presentation of Creon Energy Fund, the first projects of which are being prepared currently by Creon Group, can be downloaded in English language via this link:

>>> Link to the English version

>>> Link to the Chinese version


In case of questions don’t hesitate to contact us.

Florian Willershausen
Director Business Development
Marketing and Communications
Creon Capital S.à.r.l.
T (GER) +49 151 162 44 591 (WhatsApp)
T (RUS) +7 968 783 84 12
T (LUX) +352 621 235 126
E willershausen@creoncapital.lu
www.creoncapital.lu
Creon Energy Fund S.C.A., Sicav-SIF



Premiere in Berlin: For the first time outside of Russia, the CREON Group presented the widely-established rating of environmental responsibility of oil and gas companies. The study, which CREON conducts together with the World Wildlife Fund (WWF) Russia annually since 2013, was presented at the conference “Ecological Responsibility in the Russian Energy Sector” in Hotel Marriott Berlin. 90 participants witnessed dynamic debates on the prospects of renewable energies in Russia, the country’s deficits in processing associated gas in oil production, LNG refueling of ships as an environmentally friendly alternative to heavy fuel oil.

From the beginning, the aim of the event was to bring together German and Russian companies as well as experts from associations and environmental organizations. German businesses provide various technologies that contribute to a more sustainable oil and gas production. At the same time, the sensitivity to ecology issues is growing among Russian industrial companies, not least due to better state regulation and the attention paid to ecology issues with instruments such as the CREON rating. The practice-oriented event was supported by the German Committee on Eastern European Economic Relations, the German-Russian Chamber of Commerce and Industry (AHK) and the United Nations Development Program (UNDP).

In contrast to other policy areas of German-Russian relations, ecology topics in the energy sector offer considerable scope for bilateral cooperation. Ursula Borak, director of the Federal Ministry of Economics and Energy (BMWi), Deputy Director-General and head of the department “International, fossil fuels and nuclear energy”, emphasized in her speech: “German-Russian energy relations lay the fundament for the economic relations between both countries, which is not only due to their high share in bilateral trade. They also imply great modernization potential for cooperation between Germany and Russia. There are many opportunities for projects where environmental protection and economic interests go hand in hand. Together with our Russian partners, the Federal Ministry for Economic Affairs and Energy supports companies in recognizing and taking advantage of these opportunities.”

Dr. Christiane Schuchart, Russia Director at the German Committee on Eastern European Economic Relations, said: “Mutual investment and joint projects in the energy sector create trust due to their long-term perspective and can thus make a positive contribution to the political rapprochement between Russia and Germany. Environment and climate – and thus all of us – benefit from the fact that German-Russian energy cooperation is becoming “green.” With the topic of ecology in the Russian energy sector, the CREON event stands out in the lush conference landscape.

It is crucial to reduce mutual prejudices and strengthen the exchange of projects related to environmental responsibility. In this sense, the presentation by Natalia Zaytseva, who heads the Center for Sustainable Businesses at the Moscow School of Management Skolkovo, turned out to be a helpful overview. In independent European sustainability rankings, Russia ranks midfield, after all. The number of companies that recognize their responsibility for a sustainable economy is also growing steadily in Russia.

This is in line with the observations of Alexey Knizhnikov, who is responsible for the ranking at WWF Russia: “Four years ago, it was extremely difficult for us to even get data and information on accidents and pollution. In the meantime, especially the big oil and gas companies are getting more and more transparent from year to year, because the pressure of the public is growing. “However, there are still deficits: “Satellite imagery suggests that in the oil production much more accompanying gas is flared than the official data of government and companies claim”, Knizhnikov called an example. Incidents in factories are all too often concealed.

Gazprom, Sakhalin Energy and Nord Stream 2 representatives commented on the criticism: Nikias Wagner, Head of Public Affairs at Gazprom Germania, referred to around one billion euros in expenses that Gazprom invests annually in environmental protection: “I believe this number speaks for itself. “Andrey Samatov, Head of the Environmental Division at Sakhalin Energy, explained his numerous projects to reduce greenhouse gases in liquefied natural gas production. In the Environmental Responsibility ranking of Russian oil and gas companies, Samatov may find confirmation that they are on the right track: Sakhalin Energy took first place in 2017, followed by Exxon Mobil and Surgutneftegaz.

The ecological responsibility event will not be a one-time event in Germany. CREON agreed with the East Committee of German Business and the German-Russian Chamber of Commerce and Industry to organize the event again and expand it next year. “Russia is moving in the field of ecology and sustainability. That is why it is in the interests of the German economy to further develop bilateral economic relations in this field too”, says the Committee’s Managing Director Michael Harms.

Fares Kilzie, Founder and Chairman of the CREON Group, said about future activities: “It is no coincidence that we have chosen Berlin as the location for our first German-Russian ecology conference. Here, German-Russian cooperation is already taking place at a high level, which also confirmed the top-class participation in the conference. CREON is a pioneer in the field of ecological modernization. Now it is time to implement projects together with our German partners.”

Pictures:

1) Ursala Borak (German Ministry of Economy and Energy) held a keynote speech on German-Russian Economic Relations.

2) Andrey Samatov (Sakhalin Energy,  and Alexey Knizhnikov (WWF Russia)

3) Round table discussions during the coffee-break.

 

4) The 2017 Rating of Environmental Resposibility of Russian oil and gas companies is available in English language. 

4) Svetlana Scheynfeld, United Nations Development Program

5) Discussion the perspectives of renewable energies in Russia: Mikhail Babenko (WWF), Georgy Kekelidze (Eurosolar Russia), Thomas Heidemann (CMS Hashe Sigle), Christopfer Frey (Enercon) and Moderator Sebastian Kiefer (AHK).

 

Media contact:

Florian Willershausen
Director Communications
Creon Capital S.à.r.l.
T (GER) +49 151 162 44 591 (WhatsApp)
T (RUS) +7 968 783 84 12
T (LUX) +352 621 235 126
E willershausen@creoncapital.lu
www.creoncapital.lu



CREON Group published this year’s results of the “Rational Approach” – the rating of Environmental Responsibility of Russian oil and gas companies. As in the year before Sakhalin Energy turned out to be the assessments winner. Exxon Mobil follows on the second and Surgutneftegaz on the third rank. The rankings winners received their awards during a ceremony in Hotel Kempinski Balchug in Moscow.

As an instrument to evaluate and influence the oil and gas companies in terms of their environmental responsibility, the rating is unique for Russia. Four years back, Creon Group started together with the World Wildlife Fund (WWF) to measure the “Rational Approach”: How do companies deal with flare gas? Which measures are taken to revitalize soil after oil leaks? Do they report accidents? Is there a coherent strategy how to increase corporate responsibility?

These are mere some criteria of a sophisticated methodology, which forms a guideline for the rating. The study itself is being conducted independently by experts of Russia’s National Rating Agency. In the past four years it turned out that Russian oil and gas companies pay increasingly attention to the topic of environmental responsibility. Meanwhile, the WWF is keen to deploy its experience to other sectors as project director Alexey Knizhnikov underlined: “The rating provides objective information about the environmental responsibility of companies. We have already applied our experience to a similar rating of mining and metallurgical companies, next year we plan to calculate the rating of electricity generating companies. ”

Creon’s rating has been transformed to a well-established instrument, that gained public attention and recognition both on the federal and on the international level. On December 6th the results of this year’s rating will be presented in Berlin. Together with the long-time partner WWF Russia the environmental responsibility rating of Kazakhstan’s oil and gas companies was launched, the results of which will be announced in Astana in February 2018. Creon Group’s Chairman Dr. Fares Kilzie points out: “Creon group will continue to implement the ‘Common Sense’ program not only in Russia, we would like to consolidate the image of the Russian oil and gas business in the eyes of the global community.”

The half-day conference on December 6. will be held in Berlin’s Marriott Hotel Potsdamer Platz. Please contact as if you would like to participate in the conference, which will be translated in English, Russian and German. Further information and the program can be downloaded via this LINK.


In case of questions please contact:

Florian Willershausen
Director Business Development,
Marketing and Communications
Creon Capital S.à.r.l.
T (GER) +49 151 162 44 591 (WhatsApp)
T (RUS) +7 968 783 84 12
T (LUX) +352 621 235 126
E willershausen@creoncapital.lu


Impressions of the ceremony:

The winners of this year’s Rating of Ecological Responsibility.
Sakhalin Energy ranked first in the Rating. The company’s Head of Corporate Responsibility, Andrey Samatov (r.), received his diploma from CREON founder Dr. Fares Kilzie
The award ceremony was followed by a solemn reception at the Hotel Baltschug
Creon Capital supported the award ceremony.

 

 

 

 


 



“Fueling the Future” – this was the promising headline of a conference on LNG, which took place in Nice (France). Creon Capital has been a sponsor of this event, which Vilnius-based Wisdom Group has established as platform for international professionals on Liquid Natural Gas (LNG). Experts from well-known companies such Enagas, Petronas, Engie, Wison and Cryocan discussed perspectives for LNG-landing infrastructure in Europe and beyond, mostly with a positive outlook.

For Europe LNG is a trend, which maintains its popularity in political and business circles. However, prices for spot-traded LNG remain volatile and in the tendency expensive, the 27 existing LNG-landing facilities in Europe are operating far below their capacity.

Could LNG become an opportunity for Russian companies supplying European projects? This is the question asked by Dr. Fares Kilzie, Chairman of Creon Capital, and his answer appeared to be skeptical on the first view: “With domestic gas prices between 64 and 69 Euro per thousand cubic meter Russia belongs to the most competitive gas suppliers in the world”, he underlined. “But in Russia we are very good in delivering pipeline gas, but at the same time we are a poor player in the LNG market.” Russia, the country with the largest gas production in the world, accounts for merely 4 percent of the LNG supplies in the world.

Kilzie’s Creon Group, which is the Creon Energy Fund’s initiator and Russia’s leading consulting company for the Oil and Gas Downstream markets, counts currently almost a dozen small- and medium-scale projects in Russia. “All of them are clearly export-oriented, but in each of them something is missing”, he pointed out: the lack gas-supply, the lack of local demand, lacking legal permissions, non-sufficient financial equipment.

Despite all that Creon Capital believes in the development of competitive LNG supply chains on a global scale: Bunkering projects are gaining importance, fueling ships with the liquified gas is an increasingly profitable business, in countries like Spain or France large trucks are filled with LNG. “Given the growing demand for LNG, we expect increasing investments in the infrastructure.” And the latter projects would be more profitable, if they were fueled by cheap gas from Russia on the base of long-term contracts with producers such as Novatek. Dr. Kilzie concluded his statement with an invitation to propose scalable projects linked to gas supplies from Russia. The Creon Energy Fund would be ready to invest.

If you have any questions, please don’t hesitate us:

Florian Willershausen
Director Business Development,
Marketing and Communications
Creon Capital S.à.r.l.
T (GER) +49 151 162 44 591 (WhatsApp)
T (RUS) +7 968 783 84 12
T (LUX) +352 621 235 126
E willershausen@creoncapital.lu



 

When Creon Energy Fund gets invested in a project, the Fund’s managers know how to act in the background: Many energy projects, particularly in the Oil and Gas Downstream sector have been pushed forward towards success by Creon Group’s professionals for almost two decades. Regardless Creon Energy Fund’s investments – Creon Capital’s executive team is capable to assist other investors as an advisor as we know how to mitigate investment risks in Emerging Markets in general and particularly in Russia and CIS countries.

How to protect the foreign investor’s rights and investments? This is a crucial question. And it might keep awake at night any entrepreneur when he is about to decide whether to set up a foreign Joint Venture, to purchase minority shares of a foreign company, or to found a subsidiary abroad. As a Luxembourg-based and -licensed Business Management Consultancy, Creon Capital adopted a new concept how to mitigate the risks, which has been presented during the China Roadshow 2017 to a broader audience in Beijing.

Creon Capital’s risk-minimizing approach is addressed to investors, who are keen to invest in Emerging Markets but don’t like the idea to become subject of the local legislation in the targeted countries due to their lack of stability, transparency, efficiency or predictability. Creon Capital offers to create a sub-Fund within the existing Sicav-SIF structure in Luxembourg, which is monitored by most reputable service providers such as Ernst & Young, Arendt & Medernach and the depositary bank CACEIS. The Sub-Fund, which operates independently from the Creon Energy Fund, will be subject to EU-legislation and regulation.

Structuring the investment via Luxembourg protects the investors on several levels:

Legally, the investment will be realized and monitored by a Luxembourg entity, which is the Creon Energy Sub-Fund. While being under control of the actual investor, this vehicle is subject to Luxembourg laws, regulations and standards. If a legal dispute between investors arises, the legal process will be held in EU. In fact, this reduces significantly the possibility that local businessmen threaten their foreign partners by applying non-compliant instruments.

Structurally, the Luxembourg-based Sub-Fund is being managed by the experienced Creon Capital team and its well-established service-providers. Valuables such as off-take-agreements or EPC-contracts will be held in custody by the depositary-bank CACEIS, which eliminates the risk of raids against single Joint Venture-partners. Besides CACEIS, both the auditor Ernst & Young and Luxembourg’s financial authority CSSF, are conduction a threefold monitoring and evaluation of the assets on the ground. The risk-management and compliance-policy can be subject to regular monitoring as well.

Financially, Creon Capital’s structuring services provide significant benefits. Emitted on Euro-basis, the Sub-Fund itself can be perceived as a “haven” for partners from non-European countries. The Creon Capital management can assist to fund the Sub-Fund’s project with the perfect timing for money transfers as we monitor the usually volatile currencies in the targeted countries. Together with our service partners we also help to transfer capital towards to the foreign entity and back.

Operationally, it’s up to our partners, if they prefer to run an entity on the ground themselves. Creon Capital can use the Group’s network to find the management professionals and business partners to ensure the success of the local subsidiary. Under any circumstances, the project initiator will remain to be the owner with access to revenues and profits, but also with the full economic responsibility

If you have any specific questions, don’t hesitate us:

Florian Willershausen
Director Business Development,
Marketing and Communications
Creon Capital S.à.r.l.
T (GER) +49 151 162 44 591 (WhatsApp)
T (RUS) +7 968 783 84 12
T (LUX) +352 621 235 126
E fw@creoncapital.lu



Although relatively few Chinese companies have invested in Russia so far, the post-soviet area remains quite a promising investment destination for industry majors from Beijing and beyond. The response was remarkably strong when Luxembourg’s Fund managing company Creon Capital invited on Tuesday to Beijing’s Sofitel Wanda. Almost 100 top-managers of well-known Chinese companies such as CGGC, Wison, COOEC, CRRC, CRCC and HQC joined the event, which has been supported by Russia’s ambassador Andrey Denisov.

“Project opportunities in Russia & CIS” was the encouraging title of the half-day-event. And Dr. Fares Kilzie, Chairman of Creon Group and Creon Capital, didn’t hold back with promises: Successful and high value-adding projects are possible in CIS countries, even without access to superior political levels or the leading state-owned-enterprises such as Gazprom or Rosneft. Kilzie: “The most valuable projects in the region are medium-sized and of private ownership.” And it’s the Fund’s task to help Asian or European partners to enter these opportunities.

This should be the right time for investments in CIS countries and especially in Russia. As Ambassador Denisov underlined, political relationships between both countries have barely ever been as good as they are right now. Alexander Gabuev, a senior research fellow of the Moscow-based think tank “Carnegie Center”, added western sanctions imposed against Russia as push-factor for the bilateral economic relations: “Russia is simply forced to do more business with Asian countries, whereas investments from Europe remain stagnant.”

Yet the Chinese companies remain reluctant, when it comes to investments in Russia/CIS. Gabuev argued, Chinese companies prefer to purchase either high-technology companies in western countries, where investment conditions are more predictable. Or they go for assets in African countries, which local governments don’t claim sophisticated conditions for investors. “Russia falls in-between”, said Gabuev, “and probably the Russians are too proud to open the doors for Chinese investors.”

Meanwhile, the Chinese participants themselves named the obstacles when doing business in Eastern Europe. Ms. Yan Wang, Partner of the auditing company Ernst & Young in Beijing, mentioned the lack legal predictability and stability to explain why the Chinese are so far less committed to Eastern Europe. Mr. Xin Zongyi, Executive Vice-President of the industrial giant CGGC, drew the conclusion: “You always need a strong local adviser such as Creon Group as a partner.”

Indeed, Creon Capital is capable to reduce investment-risks associated with investments in CIS countries by structuring them through the Sicav-SIF-Fund. This applies not only for Chinese investors: European (co)-investors, partners from Japan, South Korea or Singapore are likewise interested to enter the Russian market together with Creon Capital, which facilitates a better market-access and increases the investment protection as the Fund is subject to EU-legislation and Luxembourg’s sophisticated asset-monitoring standards.


Dr. Fares Kilzie, Chairman of Creon Capital, introduced investment opportunities in Russia and CIS countries.

Download the conference material here:
– Corporate Presentation “Creon Energy Fund” (EN | CH)
– Creon Group Presentation (EN | RU)
– Conference Program “Project Opportunities in Russia & CIS. China Roadshow 2017” (EN | CH)
– Presentation of Creon Capital Chairman Dr. Fares Kilzie (EN | RU | CH)
– Market overview Russia by Nikolay Asatiani, Head of Creon Energy Asia (EN | RU | CH)
– “Overview of latest trends in Russian economy, its investment climate and FDI policies”, by Alexander Gabuev, Carnegie (EN | CH)
– “Overview of Chemical Sector in Russia and Opportunities for Chinese Enterprises”, by Sandjar Turgunov, Creon Energy (EN | RU| CH)
– “Overview of Plastic & Packaging Sectors and Opportunities for Chinese Enterprises”, by Rafael Grigoryan, Inventra (EN | RU| CH)

***

For further information please contact: 
Florian Willershausen
Director Business Development,
Marketing and Communications
Creon Capital S.à.r.l.
T (GER) +49 151 162 44 591 (WhatsApp)
T (RUS) +7 968 783 84 12
T (LUX) +352 621 235 126
E willershausen@creoncapital.lu



Creon Capital is committed to the development of the Russian Far East. Fund manager Florian Willershausen signed a memorandum of understanding with the head of the Far East Investment and Export Agency, Leonid Petukhov. The signing took place during the Eastern Economic Forum, which is currently held in the presence of the Russian President Vladimir Putin in Vladivostok. Both parties will exchange information on investment projects.

Russia’s “far east” is about eight hours away from the capital – already this is reason enough that investments in the regions of Vladivostok, Amur, Khabarovsk or Sakhalin remained low since the end of the Soviet Union. Domestic and foreign direct investment were directed to industrial structures in Central Russia, where companies benefited from the proximity to Europe and the spending power in big cities such as Moscow and Saint Petersburg.

This is changing rapidly. The government invests billions through a specialized Fund, the Far East Investment Agency spends enormous manpower in the reconstruction of this region, which actually has a lot to offer: Its resource richness, proximity to mega-markets like China, the sea access. The Gas-processing plant in the Amur region, which is worth 11.5 bn. Euro, is merely on example which shows, that even large and complex projects can be facilitated far from Moscow. 

Creon Capital believes in the development opportunities and has set itself the goal of bringing together the regional governments of the Russian Far East with investors from Asia and Europe. In detail, the Memorandum of Understanding provides the following:

(1)     The Far East Investment and Export Agency will regularly provide Creon Capital with information about new investment opportunities, with relevance & according to the Fund’s scope. This could be, for example, a sizable project in the area of renewable energies, chemical and petrochemical industries.

(2)     Creon Capital will review relevant projects as investment opportunities. If a project is considered as inappropriate for the Fund, the managing company may suggest other co-investors from Asia and Europe, with which Creon Capital and its affiliated companies are working.

(3)     The Far East Investment and Export Agency will frequently brief Creon Capital regarding the investment climate in the Russian Far East.  The investment company will take part in high-profile meetings and conferences dedicated to improve the framework for investments in the Russian Far East.

(4)     Creon Capital agrees to act as an intermediator between the Russian Far East and Asian or European investors, who might consider the region as an investment destination. The Fund managers might share information about the Far East, but they won’t promote it actively.

Leonid Petukhov, Director of the Far East Investment and Export Agency, signs the MoU
with Creon Capital Director Florian Willershausen in Vladivostok.


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Our Compliance strategy

Creon Capital is a value-oriented European company, which manages investments in Eurasia.

Creon Capital follows strict European values and compliance standards while investing.


Proven Structure

Licensed as SICAV-SIF by the Luxembourg Financial Authority CSSF, the Creon Energy Fund is monitored in the strictest manner by several independent external institutions: Auditor: Ernst & Young, Depositary: Intertrust, Legal advisor: Arendt & Medernach, CSSF. Compliance is an integral part of our culture.


Bound by the law

Creon Capital S.á.r.l. is a Luxembourg based Alternative Investment Fund Manager.


Moral obligations

With implementation of the ALFI Code of Conduct, we permanently monitor the compliance risks and communicate them to all our investors. For our partners in emerging markets we provide all necessary assistance to advance their corporate governance to a European level.  We see ourselves and our projects as positive examples of how to work successfully in Eurasia.