Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Business in Brief

Oil Output Up 6%


The nation’s crude oil output increased by almost 6 percent in 2000 compared to 1999, while natural gas production fell by 1.5 percent, the State Statistics Committee said Monday.

Crude oil output in 2000 was 313 million metric tons and gas production was 555 billion cubic meters, according to the committee.

Energy Ministry figures for 2000 put combined oil and gas condensate production at 323.28 million tons, but the statistics committee said it issues one set of figures on which it does not comment further.

Gasoline production increased by 3.6 percent to 27.2 million tons, and output of so-called Russian diesel was up 4.9 percent to 49.1 million tons. Fuel oil production fell 1.7 percent to 49.2 million tons.

Gas condensate output increased by 3.8 percent to 10.4 million tons in 2000, according to the figures.

Fuel Market Grows

The Moscow Times

The internal market for fuel grew by up to 5.5 percent in 2000, Interfax reported the State Statistics Committee as saying.

Sales on the internal market of oil and gas condensate were 173.8 million metric tons last year, up 2.7 percent on 1999. Natural gas sales were 307.6 billion cubic meters, up 3.5 percent. Coal sales fell by 2 percent to 205.8 million tons.

Refineries sold 26.4 million tons of gasoline on the internal market, 4.4 percent more than in 1999; 49.6 million tons of diesel, 5.9 percent up; and 49.1 million tons of heating fuel, 2 percent less.

Power, Heat Tariffs Up

">The Moscow Times

The Moscow Regional Energy Commission, which regulates energy tariffs for the city and region, has allowed electricity and heat tariffs to rise by up to 25 percent as of Monday.

Households will see rates rising from 35 kopeks to 44 kopeks per kilowatt-hour for apartments with electric stoves, and from 50 kopeks to 63 kopeks per kilowatt-hour for apartments with gas stoves. Industrial enterprises will pay 22 percent more for electricity.

Both households and industry will pay an average of 25 percent more for heat.

A representative of the commission noted that local power utility Mosenergo had proposed raising payments by 40 percent.

The commission underlined that underprivileged citizens would retain their exemptions from utilities payments.

Baltika Restructuring

The Moscow Times

Baltika, the nation’s leading brewer, has a new shareholder structure after Baltic Beverages Holding, which previously held a 74.96 percent stake, sold a 16.87 percent stake to a 100 percent Swedish subsidiary, Grundstenen.

Anton Rogachevsky, the head of BBH’s representative office in Russia, said Monday in a telephone interview that the stake transfer was exclusively an internal deal, as the result of which all 74.96 percent previously owned by BBH was still controlled by the holding. "It was just a step to optimize the holding’s structure," he said.

Anton Ivanov, consumer goods analyst with Troika Dialog, said the shift in the shareholder structure could have been related to the recent acquisition of 50 percent of BBH by Carlsberg, a Danish beer-producing giant.

Coming: Boxed Wine


The Swiss firm Tetra Pak is hoping that local consumers will move toward buying their wine in cardboard packaging.

The market has plenty of potential — up to 20 percent of the wine market in developed countries uses nontraditional carton and plastic packaging, said Georgy Ilichev, manager of Tetra Pak’s local wine project.

The first such project in Russia was launched at the start of the year by Suvoroff International, a wine-making firm from the self-proclaimed Transdnestr republic.

Suvoroff will use the imported $3 million worth of Tetra Pak equipment to "bottle" its red and white wine under the new brand of St. Gotthard, named after a pass in the Alps that Alexander Suvorov crossed. All the goods will then be dispatched to Russia and distributed to major cities by the Russian Varg company. The recommended price for 1 liter of St. Gotthard will be 65 rubles ($2.38).

Alfa Gets Bank

The Moscow Times

Alfa Bank is close to completing the acquisition of shares of the Dutch Amsterdam Trade Bank, Prime-Tass reported deputy general director Valery Miroshnikov of the Agency for Restructuring Credit Organizations, or ARKO, as saying during an interview on the Ekho Moskvy radio station.

The Amsterdam Trade Bank is 100 percent owned by former Russian banking giant SBS-Agro, which ARKO took over in 1999. The bank’s shares were seized through a court by foreign holders of ruble-dollar forward contracts on which SBS-Agro defaulted in 1998.