Kazakhstan’s AIFC Green Finance Center LTD and CREON Capital S.a.r.l. signed a memorandum of understanding and partnership to strengthen cooperation in the field of carbon capture, storage and utilization (CCUS).
Creon
In June, Creon Capital established a branch in Düsseldorf. The new Creon mainstay is located directly on the Rhine. Its team is to bundle the investment activities in Germany. For this purpose, Creon Capital has boarded four new leading employees with extensive know-how and a widespread network in the European industries. The mission of the Düsseldorf team is to develop M&A as well as investment projects in Germany and to internationalize them on the Eurasian level.
Josef Rentmeister, the new Co-Chairman of Creon Capital, gained over 20 years of leadership experience at IBM, Cisco, and T-Systems with responsibility for over €1 billion budget and over 2,000 employees. Through his investments in German small and medium-sized enterprises (SME), he brings 15 years of experience in investment management and business development.
“I am thrilled to join the Creon team, combining the outstanding expertise and network of Creon with my global experiences. Together with my team I am looking forward to contribute to bridge the gap between western businesses and eastern suppliers and investors”, said Josef Rentmeister.
Jan Wuppermann, Director, has more than 20 years of experience in corporate finance, restructuring and auditing, amongst others as Head of Internal Audit North- and Latin America of a stock-listed packaging corporation and in the establishment of a bank’s M&A department. Jan Wuppermann completed his vocational training in banking and has a master’s degree in International Business from Maastricht University and a Master of Laws (LL.M.) from the University of Münster. Jan Wuppermann is a founder and Managing Partner of Operando Partners, where he is responsible for marketing/communications, investors, and the origination of transactions. He is also a shareholder of Wuppermann AG, a family-owned metal processing business founded in 1872, which has an annual revenue of around 500 million euros.
Peter Folle, Director Transactions, who gained over 20 years of experience as a PE fund manager. As a trained banker and holding degrees in business administration and economics, he has developed the fund and investment controlling of Triginta Capital since 2001 and is Managing Partner since 2003, responsible for more than 100 transactions. Besides that, he has extensive experience in the areas of investment controlling and restructuring SME, specialized on mechanical engineering, internet, IT as well as health and social services.
Jan Philip Neuhaus, Director, holds a Bachelor and Master of Science in Business Administration with a major in Accounting and Finance. His main focus is the execution and support of M&A transactions in all phases. In addition, he supported the investment process for the company’s own portfolio with regard to investments in start-ups and SMEs.
As in the previous year, Sakhalin Energy ranked first in the Environmental Transparency Rating of Russian Oil and Gas Companies. The international producer of liquefied natural gas (LNG), owned by Gazprom, Shell, Mitsubishi and Mitsui outperformed in terms of openness on environmental topics, a clear strategy on environmental responsibility and with concrete measures to decrease the production’s impact on the environment. On the second and third ranks followed Zarubezhneft and Exxon Neftegas Ltd., which also confirmed their leading positions of the previous year.
The rating was conducted for the sixth time already. From the very beginning, CREON Group supported the project as a strategic partner, whereas WWF (Russia) takes responsibility for the methodology and the National Rating Agency carries out the calculation based on publicly available sources. In 2019, the project was part of the EU funded People for Nature project. The government of the Russian Federation supported the event as well: The presentation took place in the government’s Analytical Center in Moscow. This time, 20 oil and gas companies were subject of the rating.
In addition, five companies received diplomas in additional categories: Lukoil was granted for its top performance in terms of environmental transparency, Rosneft was honored for encouraging the most constructive dialogue regarding accidents and controversial situations. For its leadership in mitigating environmental impacts Surgutneftegaz received a diploma, whereas Gazprom Neft was granted for its most dynamic growth of oil recovery. Tatneft has shown the most rapid advancement in the rating, which led to a diploma as well.
CREON Group chairman Dr. Fares Kilzie reminded: “We launched this project in 2013, which turned out to be revolutionary for the industry. The concept we are promoting is a forerunner not only in Russia, but globally. It is hard to acknowledge, but the results of our activity will not be visible today or tomorrow. At present, we are witnessing the changes in the Russian oil & gas business, and the massive efforts of the government and the companies are evident now, alongside a significant and inevitable transformation towards sustainable development. And we as a Group are proud of being part of the process.”
Aleksey Knizhnikov of WWF Russia confirms a significant increase of the companies transparency: “The modern economy is rapidly transforming and today investors and consumers value both the economic component of transactions and the social and environmental responsibility of businesses, which is important for gaining a competitive edge,” points out the WWF Russia Head of the Program for the Business Environmental Responsibility. “For the sixth year in a row, we have seen increasing progress in the companies’ disclosure of environmental performance. According to our estimates, public nonfinancial reporting of oil and gas companies has showed the fastest development in Russia over the last years and is becoming the basis for dialog with stakeholders on reducing environmental impacts,” he says.
The robustness of the method and the accuracy of calculations were confirmed by the FBK Grant Thornton audit and consulting group. The company performed selective tests of the criteria and analyzed the accuracy of the scores (levels) against the method, returning a favorable opinion. Vladimir Skobarev, Partner and Head of Corporate Governance and Sustainability at FBK Grant Thornton underlined: “The role of sustainability ratings as important tools for external assessment of corporate social responsibility is increasing every year, while the practice of independent confirmation of the ratings themselves, in turn, is a tool to increase trust in them.”
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About:
The Rating of Environmental Responsibility in the Russian Energy Sector has been launched in 2014 as an initiative of the CREON Group and WWF Russia. The project’s objectives were to conduct tangible and comparable information on environmental activities of oil and gas companies. Thanks to the publicity effect of the rating, some influence could be exerted on the companies in Russia, which partly increased transparency, decreased pollutions or developed an environmental risk-management-system. In 2017, the rating was first presented in Europe, also a separate rating of the Kazakh oil and gas companies was conducted.
The World Wide Fund for Nature (WWF) Russia works with state institutions, companies, experts and local communities to change people’s attitude to nature. The priorities of WWF’s various activities in Russia include the protection and preservation of biodiversity, sustainable forestry and fisheries, the «green economy», environmental governance, climate and energy.
CREON Capital is a fund management company based in Luxembourg. It manages the CREON Energy Fund, which actively invests in energy projects. Green technologies, renewable energy and logistics are among the focus areas of investments. The private equity fund also invests in the processing of gas and the construction of a liquefied natural gas infrastructure.
You may DOWNLOAD the rating brochure HERE:
For further information please contact:
Maria Dymenko, md@communicationz.ru, +7-985-135-1009
Pictures:
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:
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)
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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