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. Last Updated: 07/27/2016

Business in Brief

Tatneft Profit Drop

MOSCOW (Reuters) -- Tatneft said Tuesday its net profit dropped 60 percent in the first half of the year, and analysts attributed the fall to lower domestic and international oil prices.

Analysts praised Tatneft, the nation's No. 6 crude producer, for boosting its revenues by increasing third-party oil and product resale operations and its ability to increase exports to lucrative Western markets.

Tatneft's unaudited net profit to generally accepted accounting principles plummeted to 6.7 billion rubles ($210 million) in the first half of 2002 from 16.8 billion in the same period of 2001.

It beat expectations in a poll of analysts, who were expecting a net profit between $140 million and $190 million.

Inflation Up 1.1%

ST. PETERSBURG (Reuters) -- Russian consumer prices rose 1.1 percent in October month on month, after a 0.4 percent rise in September, Deputy Economic Development and Trade Minister Arkady Dvorkovich said Tuesday.

"This is a good figure for October after reports that inflation on a small range of goods amounted to, I think, 1.1 percent," Dvorkovich said.

"The fact that it was 1.1 percent for the whole month is good, as it means that prices for some goods have been rising more slowly. This figure allows us to say with confidence that the 14 percent target will not be overshot."

Armenia Debt Deal

YEREVAN, Armenia (Prime-Tass) -- Armenia transferred ownership in five companies to Russia as payment of its $98 million debt on Tuesday, Itar-Tass reported.

The agreement was signed during Prime Minister Mikhail Kasyanov's visit to Armenia.

The five are radio and electronics factory Mars, the Yerevan Research Institute for Material Technology, the Yerevan Research Institute of Mathematical Machines, the Yerevan Research Institute of Automatic Control Systems and the Razdan thermal power plant.

Investment Boost Plan

ST. PETERSBURG (Prime-Tass) -- The Economic Development and Trade Ministry plans to create conditions that will lead to increased investment in Russia over the next two to three years, Deputy Economic Development and Trade Minister Arkady Dvorkovich said Tuesday.

He said that several programs to attract investment already exist, including the creation of insurance systems, an analysis of the tax base and work to reduce the value-added tax to 15 percent and the unified social tax to 25 percent.

Economic Zone Bill

MOSCOW (Prime-Tass) -- The government will submit a bill on special economic zones to the State Duma before Dec. 1, Deputy Economic Development and Trade Minister Arkady Dvorkovich said Tuesday.

Dvorkovich said, however, that the Kremlin's economic department has opposed the tax breaks that the bill envisages for such zones.

Perekryostok IPO

MOSCOW (Reuters) -- Retail chain Perekryostok said Tuesday it would make a private placement of 5 percent of the company's stock with foreign portfolio investors ahead of a planned initial public offering.

Perekryostok will decide whether to sell outstanding shares or to issue new stock in the near future ahead of the planned placement, spokesman Leonid Belaga said. He said preparations for the IPO could take about two years.

$150M LUKoil Loan?

LONDON (Reuters) -- The European Bank for Reconstruction and Development is considering a $150 million corporate loan for a subsidiary of No. 1 oil company LUKoil to develop oil fields.

The EBRD said on its web site that the loan to LUKoil-Perm would be considered by its board on Dec. 10.

Deposit Guarantee

MOSCOW (Prime-Tass) -- The government may consider the bank deposit guarantee bill next week, Finance Minister Alexei Kudrin told reporters Tuesday.

All the required documents on the issue have now been submitted to the government, but Prime Minister Mikhail Kasyanov has decided to postpone the discussion until next week, Kudrin said.

For the Record

Rostselmash, the top manufacturer of grain harvesters and a part of the Novoye Sodruzhestvo holding, plans to supply Ukraine with more than 500 harvesters this year, up from 212 harvesters in 2001, the company said in a statement Tuesday. (Prime-Tass)

The government decided Tuesday to raise the crude oil export tariff to $29.8 per metric ton from December from the current $26.2 per ton in response to oil price increases over the last two months. (Reuters)

The number of cellular subscribers in Russia reached 15.4 million people in October, up from 14.5 million subscribers in September, a report released by ACM Consulting said Tuesday. (MT)

National telecom holding Svyazinvest expects local rates to increase 20 percent to 30 percent in May to June next year under a "pessimistic scenario," Svyazinvest general director Valery Yashin said in an interview published Tuesday in business daily Vedomosti. (Prime Tass)

The net profit of Vologda region-based metals giant Severstal fell 59.9 percent to 2.225 billion rubles ($70 million) in January to September, a company spokesman said Tuesday. (Prime-Tass)

The Moscow Narodny Bank Services Purchasing Managers' Index for Russia rose to a three-month high in October to 57.9 from 57.1 in September on the back of robust demand and activity growth, Moscow Narodny Bank said Tuesday. (Reuters)