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. Last Updated: 07/27/2016

Business in Brief

$1Bln Svyazinvest Plan

MOSCOW (Prime-Tass) -- State telecoms holding Svyazinvest plans to invest 33 billion rubles ($1.04 billion) in developing its network next year, Svyazinvest general director Valery Yashin said Tuesday.

Svyazinvest has already invested $800 million in developing its networks this year compared with $680 million in 2001, he said.

First TV Profit?

MOSCOW (MT) -- Boris Jordan, the general director of Gazprom-Media and NTV, has said he expects NTV to post a net profit of $14 million in 2002 and become the first profitable national television channel.

"The end of the year is approaching, and therefore its outcomes can be anticipated with a high level of certainty," Jordan said in an interview with Vedomosti published Tuesday.

The company has received part of the $100 million pledged by new shareholder Evrofinance bank, Jordan said.

"It will be spent next year. It will be invested in NTV, TNT, NTV-Plus and a radio holding," he said.

IAS Bank Reports

MOSCOW (Prime-Tass) -- Banks will be required to report their financials for 2004 both by Russian and international accounting standards, the director of the Central Bank's banking supervision department said Tuesday.

Russian banks are to report their financials during the entire year of 2004 according to RAS but will have to report the full-year financials in IAS, Alexei Simanovsky said at a news conference.

"By the end of 2004, banks will have to accommodate the new system and submit financials for 2004 … in two formats," he said.

LUKoil in Bulgaria

SOFIA, Bulgaria (AP) -- No. 1 oil producer LUKoil said Tuesday its investment in southeastern Europe would reach $192 million this year -- three times more than last year's sum.

Martin Ganev, a LUKoil official in Bulgaria, announced the figure to an international meeting of oil and gas suppliers to the Balkans in Sofia.

Ganev also said that the taxes the company pays would make up a fourth of the country's budget revenue this year. He did not elaborate on the details of LUKoil's investment in the region.

LUKoil Sale Still on

MOSCOW (MT) -- The government still plans to sell its 5.9 percent stake in No. 1 oil producer LUKoil on Western markets, Interfax reported Property Minister Farit Gazizullin as saying Tuesday.

"We will definitely push this deal through to the end and receive good money," Gazizullin told Interfax. "We aren't going to sell LUKoil cheaply."

The government surprised investors in August when it postponed the LUKoil offering on the London Stock Exchange at the last minute, citing an unsatisfactory price. The 12.5 million American Depositary Receipts at the time were valued at about $680 million.

Surgut Profit Up 21%

MOSCOW (Prime-Tass) -- Oil major Surgutneftegaz's pretax profit fell 20.5 percent year on year to 46.314 billion rubles ($1.45 billion) in January through September, the company said Tuesday.

Sales profit was 46.756 billion rubles compared with 57.543 billion rubles in the same period of 2001, the company said, while sales revenues rose 16.1 percent to 135.539 billion rubles.

More Privatizations

MOSCOW (Prime-Tass) -- The Property Ministry has drafted an additional list of some 200 state stakes in unspecified enterprises slated for privatization in 2003, Property Minister Farit Gazizullin told a conference on privatization Tuesday.

The additions come on top of a main list of some 1,600 stakes in joint-stock companies and 1,000 stakes in fully state-owned enterprises.

The list of additions will be updated before February, Gazizullin said.

LUKoil Profit Up 84%

MOSCOW (Prime-Tass) -- No. 1 oil producer LUKoil's un-consolidated net profit soared 84.4 percent year on year in January through September to 33.3 billion rubles ($1.05 billion), the company said Tuesday.

Pretax profit increased 79.1 percent year on year during the period to 46.3 billion rubles, LUKoil said, while sales revenues rose 14.6 percent year on year to 171.1 billion rubles.

New Ice Cream Plant

MOSCOW (Prime-Tass) -- No. 1 ice cream producer Russky Kholod will launch a factory in Moscow with a projected output of 2,000 metric tons per month in 2003, marketing director Alexander Saulin said Thursday.

He did not give the figure exact for investments, but said that it will be "the most modern ice-cream production facility in the world."

The company has projected sales this year at 27,000 tons of ice cream, roughly 10 percent of the total market.

UES Charter Changes

MOSCOW (MT) -- Unified Energy Systems minority shareholders agreed with board chairman Alexander Voloshin on making changes to the power monopoly's charter, Interfax reported Tuesday.

"Both sides agreed to start working right away on the changes, which would provide a moratorium on sales of core assets until the restructuring of UES is complete," said Alexander Branis, a board member representing minority shareholders.

Yakutia: Sell Gold

MOSCOW (Prime-Tass) -- The Yakutia republic's administration has asked Ireland's Celtic Resources to consider selling at least part of its stake in the Yuzhno-Verkhoyanskaya Mining Co. to a Russian partner, Alexei Yefimov, head of the local mining department, said Tuesday.

Celtic Resources is expected to make a decision by Dec. 1, Yefimov said.

If Celtic refuses to sell, the administration plans to revoke the license for the development of the Nezhdaninskoye field from the SVMC, he said.

Celtic Resources owns 20 percent of the Yuzhno-Verkhoyanskaya Mining Co., which is developing the Nezhdaninskoye gold field. Another 50 percent is owned by state enterprise Komdragmetal and 30 percent is in the trust management of Zenit bank.

Yefimov said the development of Nezhdaninskoye was unsatisfactory.

Baltika Revenues Surge

MOSCOW (Prime-Tass) -- Leading brewer Baltika on Tuesday posted earnings before interest, tax, depreciation and amortization of $202.303 million in January to September.

The company did not provide any comparative figures.

The results were to U.S. generally accepted accounting principles.

Revenues rose 41.19 percent year on year to $560.939 million in the period, the company said, selling 129.7 million dekaliters of beer, up 21.89 percent.

$50M Aircraft Loan?

MOSCOW (MT) -- The European Bank for Reconstruction and Development is considering granting a $50 million loan to Sirocco Aerospace Russia to build Tu-204 medium-range aircraft, the bank said in a statement Tuesday.

The EBRD board will make a decision Dec. 17, the bank said.

Sirocco Aerospace Russia was set up by Sirocco Aerospace International, an Egyptian company with exclusive rights to market and sell Tu-204-120.

The Tu-204-120s are produced at the Ulyanovsk-based plant Aviastar plant.

The total project cost is estimated at $150 million, the statement said.