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. Last Updated: 07/27/2016

News in Brief

Sales Tax Raised to 5%

The Moscow Times

The Moscow city government on Wednesday raised its sales tax from 4 percent to 5 percent, Interfax reported.

Valery Zharkov, head of City Hall's economic policy and development department, said the increase would bring the city 3.3 billion rubles ($118.4 million), the news agency said.

It quoted him as saying that the money would be spent on the city's social programs, including raising the minimum pension and additional support for families with many children.

Judge Rebuffs BoNY

The Moscow Times

Bank of New York has failed to persuade a court to reject the appeal of its shareholders, who say the bank allowed illegal funds to be laundered through its accounts by being too permissive and overexpanding in Russia, Bloomberg reported Wednesday.

The judge in the case refused to reject the appeal or delay its hearing.

The Bank of New York has called the allegations unfounded and "insulting."

Shareholders also accuse bank chairman and senior executive director Thomas Renyi of receiving money from special offshore accounts used to launder illegal funds.

$2Bln Sibur Investment

The Moscow Times

Sibur, the Siberian and Urals oil and gas chemicals company, plans to spend $2 billion on its development program till 2010, Prime-Tass quoted company officials as saying Wednesday.

Investment will mainly cover reconstruction, modernization of its enterprises and the introduction of new technologies.

The investment program is yet to be confirmed by the company's board of directors.

New GAZ Team

The Moscow Times

The country's No. 2 automaker GAZ said Wednesday it would hold an extraordinary shareholders' meeting in January to discuss a new management lineup after the arrival of a new major shareholder.

Siberian Aluminum, or Sibal, part of top aluminum producer Russian Aluminum, said earlier this month it had acquired a blocking stake of 25 percent plus one share in GAZ. Sibal has said it could increase its stake in GAZ to a controlling one.

The board approved GAZ president Nikolai Pugin's appointment of current Sibal vice president Viktor Belyaev as first vice president and general director of the GAZ car plant.