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. Last Updated: 07/27/2016

Business in Brief

Committee Retains Tax

The Moscow Times

The budget and finance committee of the Moscow City government on Monday recommended that City Hall keeps its sales tax at 4 percent next year, Interfax reported.

It was initially proposed that the sales tax be increased to 5 percent, said Valery Zharov, first deputy head of the department for economic policy and growth in the city. It was planned that 4 billion rubles ($143.5 million) be directed from this increase to pay additional pensions in 2001, Interfax said.

If the tax stays at its previous level amendments will have to be made to the Moscow budget for 2001 removing the pension increase, Zharov said.




Surgutneftegaz Sale

Reuters

The State Property Fund sold 0.814 percent of oil holding Surgutneftegaz to domestic bidders at an auction for 7,841.09 rubles ($281.45) a share, the fund said Tuesday in a statement.

The 85,716 ordinary shares, which had a nominal price of a ruble, were sold for a total of 672 million rubles ($24.1 million) with two out of three bids satisfied.

The fund had previously stated that the auction starting price would be 7,840 rubles a share.

Surgutneftegaz had earlier declared a swap of shares in its holding company for those of the traded company OAO Surgutneftegaz, which trades on the Russian Trading System.

At this stage shareholders have already exchanged more than 97 percent of shares in the holding company for those in the traded company.




Power Station Upgrade

The Moscow Times

The capital’s oldest station, Moscow state central power station, or MGES-1, will undergo complete reconstruction by 2007, Interfax quoted its director, Valery Ovcharek, as saying Tuesday.

The 103-year-old natural-gas powered station has the Kremlin, the State Duma and Lubyanka among its clients.

Ovcharek said modernization of the station, located at 10 Raushskaya Naberezhnaya, will raise its capacity from 99 megawatts to 120 megawatts, and reduce pollution from the plant by 80 percent.

Ovcharek said Moscow utility Mosenergo will finance the modernization through its own resources, but did not specify the cost of the work.