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

. Last Updated: 07/27/2016

Business in Brief

Foreign Investment Up

MOSCOW (Prime-Tass) -- Total foreign investment rose 32.8 percent year on year in January to September to $12.905 billion, the State Statistics Committee said Tuesday.

Direct foreign investment, however, fell 9.9 percent year on year to $2.631 billion. Portfolio foreign investment was down 23.3 percent year on year to $224 million.

All other investments rose 54.4 percent year on year to $10.05 billion.

The committee said $5.292 billion of foreign investments went into the retail and catering industries, and $4.95 billion into manufacturing.

The largest investments came from Germany, the United States and Cyprus, accounting for 17.2 percent, 13.8 percent and 13 percent of total accumulated foreign investment respectively, the committee said.

Sberbank Profit Jumps

MOSCOW (Reuters) -- Sberbank expects net profits of 30 billion rubles ($944 million) in 2002, Sberbank first deputy chairwoman Alla Alyoshkina said in an interview with Izvestia published Tuesday.

This would be a 70 percent increase on the 2001 figure she gave of 17.7 billion rubles.

"By Oct. 1, net profit stood at 28.7 billion rubles, and by the end of the year we plan to make in the order of 30 billion rubles," she said, adding that 56 percent of the company's earnings came from credit and 27 percent from securities.

WBD to List Locally

MOSCOW (Vedomosti) -- The Federal Securities Committee on Monday gave juice and dairy giant Wimm-Bill-Dann a green light to place 5 percent of its shares on local exchanges.

WBD's investor relations manager, Andrei Bliznyuk, said the shares will be listed on the RTS or MICEX, or possibly both. Permission would be required from the Federal Securities Committee for buyers to convert the shares into American Depositary Receipts.

In February this year Wimm-Bill-Dann became the fifth Russian company to be listed on the New York Stock Exchange.

Slavneft Bid Plan

MOSCOW (Reuters) -- No. 5 oil producer Sibneft said Tuesday its board had recommended setting up an affiliate and lending it $1.7 billion to bid for state-owned oil firm Slavneft.

"The decision has to be approved by Sibneft's shareholders meeting on Dec. 21," a Sibneft spokesman said.

Sibneft is considered to be a front-runner in the auction for 75 percent of the 320,000-barrels-per-day producer.

The auction is to take place before the end of the year, with an expected starting price of $1.3 billion.

VAT Refunds to Rise?

MOSCOW (Prime-Tass) -- Russia's value-added tax refunds to exporters are expected to reach 215 billion rubles ($6.8 billion) instead of the 201 billion rubles stated in the federal budget, Tax Minister Gennady Bukayev said Tuesday.

"The Tax Ministry said to consider 215 billion rubles for VAT refunds when drafting the 2002 budget, judging by the 2001 VAT refunds, but unfortunately a smaller amount has been provided," he said during an Internet conference.

In January through September, VAT refunds amounted to 163 billion rubles.

Aeroflot Case Resumes

MOSCOW (MT) -- Hearings on the Aeroflot embezzlement case resumed Tuesday after a six-week adjournment, Interfax reported.

Hearings at the Savyolovsky municipal court in Moscow were halted in September when one of the main suspects, former Aeroflot deputy general director Nikolai Glushkov, fell ill. He is under house arrest at a hospital were he is being treated.

Glushkov is one of four whom the Prosecutor General's Office has charged with embezzling Aeroflot funds.

They include another former deputy general director, Alexander Krasnenker, former head accountant Lidia Krizhevskaya and general director of the Unified Financial Corporation, Roman Sheynin.

SUAL Plans Offering

MOSCOW (Prime-Tass) -- Aluminum giant SUAL Holding plans to trade up to 25 percent of its shares on foreign financial markets in 2003-04, SUAL Holding general director and principal shareholder Viktor Vekselberg said in an interview published in Vedomosti on Tuesday.

Vekselberg also said he would leave the post of the company's general director, as "a potential foreign investor is cautious when a principal shareholder is the company's CEO."

Cigarette Increase

MOSCOW (MT) -- Russia expects to produce 385 billion cigarettes in 2003, 5 billion more than this year, Interfax reported an Economic Development and Trade Ministry official as saying Tuesday.

Tatyana Khapilina, head of the ministry's alcohol and tobacco department, said the price of cigarettes would also increase due to the increased costs of energy, customs duties and excise on raw materials, Interfax reported.

For the Record

The Tax Ministry boosted its contribution to the federal budget 29.3 percent year on year to 2.566 trillion rubles ($81 billion) in January through October, Tax Minister Gennady Bukayev said Tuesday. (Prime-Tass)

Prime Minister Mikhail Kasyanov signed off on a resolution Tuesday boosing export duties on crude oil and oil products from $26.2 to $29.8 per ton as of Dec. 1, Interfax reported. (MT)

Nomos bank has received a $47 million syndicated loan from a group of 11 banks, the bank reported Tuesday. The 11 banks were not named. (Prime-Tass)

UES plans to nearly double its dividend payout on 2002 results after a 2.6 kopek payment last year, the company's deputy chief executive officer said at a conference Tuesday. (Reuters)