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. Last Updated: 07/27/2016

Business in Brief

Grozneftegaz Ready

The Moscow Times

Newly created Grozneftegaz company is set to receive a license for extracting oil on the territory of Chechnya, Prime-Tass reported Deputy Prime Minister Viktor Khristenko as saying Wednesday.

Khristenko said that the company was registered in Grozny on Nov. 24 and that Baudin Khamidov had been appointed head of the company, the news agency said Thursday.

Work will begin no later than Dec. 15 on three deposits, which optimistic forecasts put at being able to produce a combined 1,000 tons of oil per day, he said.

State-owned oil company Rosneft will have 51 percent of Grozneftegaz, and the rest will be held by the Chechen administration, Interfax reported earlier this month.

Mil Creditors Meet

The Moscow Times

Major creditors of Moscows troubled Mil Helicopter Factory urged external manager Valdimir Bogocharov on Wednesday to prepare a draft amicable agreement within a week, Prime-Tass reported.

The court-ordered external management of the factory is scheduled to end Dec. 16. The Mil plant owes creditors 300 million rubles ($10.8 million), while its major debtor, the Defense Ministry, owes it just 25 million rubles.

Mils largest shareholder, Inter-Regional Investment Bank, holds about 40 percent of the factorys debt and is insisting that an amicable agreement be signed that would give the bank a blocking stake and the government a controlling stake.

UES, EdF in Talks


Electricite de France SA has discussed possible strategic investment with national power utility Unified Energy Systems during the planned restructuring of Russias electricity sector, a UES official said Thursday.

The official declined further comment on the talks.

Under the UES restructuring plan, investors including foreign ones could buy generating companies from UES, which would become independent firms.

EdF is also in talks with regional power utility Mosenergo, where UES holds a controlling stake, to get a 51 percent stake in Mosenergos project to build a heat power station. Investment in the station will be $130 million to $160 million.

$600M GM Deal Stalls


U.S. car giant General Motors has postponed a decision expected in December on a long-awaited joint venture with Russias leading car maker AvtoVAZ until early 2001, a GM official said Wednesday.

The estimated $600 million project has been in the pipeline for years. The agreement originally aimed at building GMs Opel Astra and a new version of AvtoVAZs Niva off-road vehicle.

Economic Amnesty Bill

The Moscow Times

The State Duma on Thursday submitted a draft resolution on economic amnesty to the Duma council, Interfax reported.

The draft urges all people who have foreign bank accounts and "shadow capital" to legalize their activities within six months after the declaration of economic amnesty, said Alexander Fedulov, deputy chairman of the Dumas Legislation Committee.

Reserves Rise $600M

The Moscow Times

The nations gold and hard currency reserves rose by $600 million to a record $27.1 billion in the week ending Nov. 24, the Central Bank said Thursday.

The banks reserves have been rising steadily throughout 2000, thanks in part to national earnings from high oil prices.

Aluminam Tender Fails


KIEV Ukraines State Property Fund said Wednesday it might slightly lower the starting price for a 10 percent stake in the countrys only alumina plant after its second attempt to auction the stake failed to draw bids.

The fund said in a statement that it had failed again to sell the remaining state-held stake in Mykolayivsky Hlynozemny Zavod and set a new auction for Dec. 6. Ukrainian Aluminum, a company linked to Russian Aluminum, owns 45 percent of the plant.