Business in Brief

New Airline Created

Russian Technologies announced the creation Monday of a new airline, Avialinii Rossii, in which it will hold a 51 percent stake.

The Moscow city government will own 49 percent, the state corporation said in a statement. The airline's board will include Mayor Yury Luzhkov and Russian Technologies director Sergei Chemezov.

The partners decided to create a joint venture after AiRUnion, an alliance of airlines in which Russian Technologies had stakes, began delaying flights because of high fuel costs. The statement did not give details of the deal. (MT)

TNK-BP Unit's Profit Rises

TNK-BP Holding said Monday that its net profit for the first half of the year more than doubled to $4.72 billion and revenue rose to $24.91 billion, compared to $15.3 billion in the same period of 2007.

The company, TNK-BP's traded unit, said a dispute resolved last month had not affected operations, but it could not exclude it having an impact in the future.

TNK-BP said its earnings before interest, taxation, depreciation and amortization rose 96 percent to $6.8 billion in the first half of the year, while capital expenditures rose 47 percent to $1.8 billion. (Reuters)

Polymetal's New Chairman

The board of silver and gold miner Polymetal has elected former anti-monopoly service head Ilya Yuzhanov as its chairman, Polymetal said Monday.

Yuzhanov is a board member of top-30 Russian bank Nomos-Bank, potash producer Uralkali, independent gas producer Novatek and electricity company MRSK Holding. (Reuters)

Rogue Trader Loses $10M

Renaissance Capital said Monday that an equities trader lost $10 million on unauthorized bets amid the country's biggest market rout in a decade.

"The bank's risk controls quickly uncovered the incident, and we took immediate action to mitigate the risk to the firm," Renaissance Group spokesman Quinn Martin said.

The trader, Anton Stenin, no longer works for the company, Renaissance said. Stenin, 28, built up about $130 million in unauthorized positions using borrowed money in a client's account, Vedomosti reported. (Bloomberg)

RusAl Investigation

United Company RusAl is being investigated by the Federal Anti-Monopoly Service after a complaint by Eurocement Group, the country's largest cement producer, that RusAl curbed raw material shipments.

Eurocement said RusAl crimped deliveries of nepheline sludge to one of its plants, the watchdog said Monday. The case will be heard Oct. 30. "RusAl didn't violate Russian antitrust laws" and is "actively cooperating" with the investigation, RusAl said. (Bloomberg)

For the Record

MosPrime, the average interest rate Russian banks charge to lend money to each other overnight, dropped for a second straight day to 9.21 percent, from 9.88 percent Friday, according to the Central Bank. (Bloomberg)

Gazprom may get a 27 percent stake in Canada's Rabaska liquefied natural gas terminal, an executive of France's GDF Suez was quoted as saying Monday. (Reuters)

Southern Telecom said Monday that it would seek a 55.5 million euro, two-year loan at a maximum of 4 percent over three-month Euribor. (Reuters)