Business in Brief
- By Unknown
- Oct. 30 2008 00:00
Silvinit Will Cut Output
Silvinit said it would cut output to support the price of the raw material used to make fertilizer.
The firm will bring forward maintenance to the end of this year to help "stabilize the situation on the potash market globally," the company said Wednesday.
Acron, the country's third-largest maker of nitrogen-based crop nutrients, said Wednesday that it would halve output. (Bloomberg)
Mechel Signs $300M Deal
Mechel signed a $300 million deal with China's Minmetals for a new rail and steel plant at its Chelyabinsk Metallurgical Plant subsidiary.
The mill's main output will comprise rails as long as 100 meters, to be provided to Russian Railways, Mechel said Wednesday. (Bloomberg)
State Takes Over VEFK
The Deposit Insurance Agency has taken St. Petersburg-based VEFK Bank, the country's 46th-biggest by assets in 2007, under temporary administration for half a year, the Central Bank said in a statement on its web site Wednesday.
The agency will be able to borrow funds from the Central Bank "to perform all of the bank's obligations," the statement said. (Bloomberg)
Magnit Profit Doubles
Magnit reported a near-doubling of nine-month profit after new stores opened and borrowed 2.5 billion rubles ($92 million) from VTB Group, becoming one of the first to borrow from a state-controlled bank.
Sberbank and VTB have pledged $250 million in credit lines for Magnit, the grocer said Wednesday. (Bloomberg)
Tea, Coffee Import Cuts
Russian tea and coffee producers may cut imports by about 20 percent in the next few months, the head of industry lobby Rusteacoffee said Wednesday.
Ramaz Chanturia said his lobby had sent a letter to the agriculture minister saying that to maintain stability, the sector needs 6 billion rubles ($219.8 million) from state funds aimed at supporting agricultural producers. (Reuters)
Grid Company Seeks Loan
The Federal Grid Company is in talks with state lenders Sberbank and VTB on a 40 billion ruble ($1.5 billion) short-term loan, deputy CEO Alexander Chistyakov said, Interfax reported.
The power distribution monopoly expects that the loan will cover delays in getting a scheduled 50 billion rubles from the federal budget in January, Chistyakov said. (Bloomberg)
For the Record
Billionaire Vladimir Yevtushenkov asked the government to buy back his stake in Svyazinvest for at least $1.9 billion, Vedomosti said, citing two unidentified government officials. (Bloomberg)
Libyan leader Moammar Gadhafi will arrive in Moscow on Oct. 31 for a three-day visit for talks with President Dmitry Medvedev, the Kremlin said. (Bloomberg)
Altimo, Alfa Group's telecommunications arm, said in a statement Wednesday that a Siberian court agreed to lift a moratorium in trading of the shares it holds in VimpelCom. (MT)
The Group of Eight has decided to postpone a ministerial level energy meeting slated for Nov. 16 in Tokyo because of scheduling difficulties, Japan's trade ministry officials said Wednesday. (Reuters)