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. Last Updated: 07/27/2016

Business in Brief

Hush Kit Delay?

LONDON (Reuters) ? The European Union should delay the deadline for installing hush kits on noisy freighters ? especially the Russian Il-76 ? The International Air Cargo Association said Monday.

"TIACA has welcomed the European Union?s decision to withdraw noise legislation that would have banned some aircraft in Europe from April next year but is calling on regulators to offer a lifeline to freighter aircraft that still face being grounded," TIACA said in a statement.

Sibneft Dividends

MOSCOW (MT) ? Oil major Sibneft announced Monday that it will pay a dividend of 2.32 rubles per share ? 60 percent of net income ? for the first half of 2001.

The dividend payout will total 11 billion rubles ($370.8 million) and will apply to those shareholders on the register at the close of business Nov. 2. Payments are scheduled to begin Dec. 13.

Sibneft reported a $613 million net profit on revenues of $1.66 billion for the first half of this year under U.S. generally accepted accounting principles.

Enterprise Investment

MOSCOW (MT) ? Britain?s Enterprise Oil plans to invest $200 million to $300 million in Russia in the next two to three years, Interfax reported Monday.

After a meeting in Moscow, John Shute, the company?s business development manager, said he would try and persuade the board of directors to increase investment in the Khanty-Mansiisk Oil Corp., or KMOC, in which Enterprise Oil owns a 27.2 percent stake.

Shute also said the company intends to develop more oil fields and expand existing infrastructure.

KMOC holds licenses to 10 deposits in the Khanty-Mansiisk autonomous district containing 420 million barrels of oil among them. KMOC produced an average 10,300 barrels per day in 2000. Enterprise Oil has already invested $53 million in KMOC, Shute said.

Oil Production Up

MOSCOW (MT) ? Oil production in January to October increased 7.6 percent year on year to 287.933 million tons, Interfax reported Monday.

Russian vertically integrated oil companies produced 250.01 million tons of oil in the first 10 months of the year, according to the Fuel and Energy Complex Central Dispatch Department.

The main producers were LUKoil (52.475 million tons), Yukos (47.854 million tons), Surgutneftegaz (36.336 million tons), Tyumen Oil Co. (27.286 million tons) and Tatneft (20.5 million tons).

Gazprom produced 8.448 million tons of oil in January to October, including 878,300 tons in October.

Port Privatizations

MOSCOW (Vedomosti) ? The government plans to sell stakes in the Murmansk, Tuaps and Taganrog ports at auctions to be held next September.

Twenty-four percent out of the government?s 49 percent stake in the Tuaps port will have a minimum bid of $28 million, a Property Ministry source said, while 34.5 percent of the government?s 60 percent stake in the Taganrog port will be offered at about $2.5 million. The proposed sale of 22 percent in the Murmansk port could fetch $10 million, analysts said.

Budget Talks

MOSCOW (Reuters) ? Prime Minister Mikhail Kasyanov is to meet top members of the State Duma on Tuesday to discuss amendments to next year?s budget in the light of the recent fall in oil prices, a member of the Duma said Monday.

The government has proposed amending the budget to postpone spending of a total 37 billion rubles ($1.25 billion) from the whole budget until the fourth quarter.

The 37 billion rubles should be saved for the fourth quarter only after 110 billion rubles to service and repay foreign debt in 2003 have been set aside, the government says. But some Duma deputies have opposed the idea.

VTB Stake Sale

MOSCOW (MT) ? The Finance Ministry has approved the EBRD?s offer to buy a stake in Vneshtorgbank, or VTB, Prime-Tass reported the head of the ministry?s macroeconomic and banking department as saying Monday.

The offer must be approved by the Cabinet.

The ministry had considered the EBRD?s offer to buy a 10 percent to 20 percent stake in VTB, said the ministry?s Anton Siluanov, but the exact amount of the stake and the price have yet to be finalized.

Diamond Agreement

MOSCOW (MT) ? Diamond monopoly Alrosa will decide Nov. 30 whether to sign a trade agreement with the De Beers diamond corporation, Interfax reported Monday.

The draft agreement, prepared last month, does not oblige the Russian government and its subjects to sell diamonds through De Beers, as previously.

If the board approves the agreement, it is to be signed at the beginning of December, Alrosa officials said.

For the Record

U.S. investment fund TPG Aurora and the European Bank for Reconstruction and Development have agreed to invest $20 million in exchange for a controlling interest in Moscow pay television operator Versatel, TPG Aurora said Monday in a press release. (MT)

Oil exports, excluding to Belarus, rose 12.3 percent year on year in January to September to 111.21 million tons, Prime-Tass reported the State Customs Committee as saying Monday. The value of the exports was $18.26 billion, compared with $17.383 billion in the same period last year. (MT)

Primary aluminum exports to countries outside the Commonwealth of Independent States fell 4.9 percent year on year to 2.2961 million tons in January to September, Prime-Tass reported the State Customs Committee as saying Monday. (MT)

Natural gas exports fell 8.5 percent year on year in January to September to 119.4 billion cubic meters, Prime-Tass reported the State Customs Committee as saying Monday. The exports? value rose 13.4 percent on the year to $12.88 billion. (MT)

As of Nov. 9, Ukraine?s veterinarian authorities began imposing a temporary ban on U.S. poultry imports, Prime-Tass reported a Ukrainian Agriculture Ministry official as saying Monday. (MT)

Truck maker UralAZ hopes to increase monthly output to 1,000 units beginning in November, Prime-Tass reported Monday. This would be a five-year record for one-month output, said UralAZ spokeswoman Natalya Makarova. (MT)

No. 4 carrier KrasAir said Monday that sales rose 50.5 percent year on year to 2.91 billion rubles in January to October, Prime-Tass reported. (MT)