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. Last Updated: 07/27/2016

Business in Brief

2002 Privatizations

MOSCOW (MT) -- State Property Fund head Vladimir Malin said that a list of more than 400 company stakes slated for sale this year has been submitted to the government, Interfax reported Monday.

The list includes a stake of 20 percent minus two shares in national telecommunications holding Svyazinvest, 19.68 percent of oil company Slavneft and 38.41 percent of coal company Vorkutaugol, as well as stakes in the Western Siberian Metals Combine, oil company Samotlorneftegaz and coal company Gukovugol, Malin said in an interview with the Trud newspaper.

"The budget will receive about 35 billion rubles [$1.14 billion] this year from the sale of shares," he said. "The state now owns stakes in a little more than 4,000 joint-stock companies, and with time it will not be profitable to keep many of them with the state."

Foreign Debt Falls

MOSCOW (MT) -- Total foreign debts, sovereign and corporate, fell $4.9 billion in 2001 to $156.5 billion in the nine months to Oct. 1, Prime-Tass reported the Central Bank as saying Monday.

The government's debt fell $7.4 billion to $118.9 billion during the period.

The so-called "new" Russian debt, accumulated by the government since 1992, dropped $6.1 billion to $53.9 billion. Total debt inherited from the Soviet Union fell $1.4 billion to $64.9 billion.

Debt to the Paris Club of creditor nations fell $1.7 billion to $37.1 billion, while the Central Bank's debt to the International Monetary Fund fell $700 million to $2.1 billion.

Korea Jet Bids Fail

SEOUL, South Korea (Reuters) -- South Korea rejected a third and final round of bids for its $3.2 billion jet fighter procurement program because it found the offer prices from Sukhoi and others too high, the Defense Ministry said Monday.

The government is looking for 40 fighters worth about 4.2 trillion won ($3.20 billion) as part of an acquisition program including fighters, helicopters, missiles and surveillance systems. In addition to Sukhoi, Boeing Co., France's Dassault Aviation and Eurofighter International had also made bids.

Kuchma Fires Minister

KIEV (Reuters) -- Ukrainian President Leonid Kuchma has fired Vadim Kopylov, head of state and oil gas company Naftogaz and deputy energy minister, Interfax reported Monday.

The report said Kopylov would be replaced by Yury Boiko, former chief executive of state oil company Ukrtatneft.

Naftogaz officials and Prime Minister Anatoly Kinakh also refused to say whether a $1.4 billion bond issue, scheduled for Monday, to cover Ukraine's gas debts to Russia had taken place.

Foreign Investment Falls

MOSCOW (MT) -- Total foreign investment in Russia fell $500 million between January and September 2001, compared with a $700 million drop in the same period of 2000, Prime-Tass reported the Central Bank as saying Monday.

Foreign direct investment increased $2 billion in January to September 2001, the Central Bank said, while portfolio investment fell $600 million in the period and other investment fell $1.9 billion.

The largest direct investments in Russia were from the United States with 27 percent of the total, followed by the Netherlands (17 percent), Cyprus (11 percent) and Germany (10 percent), the Central Bank said. No absolute figures for foreign investment were provided.

Russia-China Trade

MOSCOW (MT) -- Total Chinese-Russian trade turnover was $20 billion in 2001, Itar-Tass reported Deputy Foreign Minister Alexander Losyukov as saying Monday.

He said official turnover was $10 billion, while the other half represented unregistered transactions, according to the data provided by Chinese authorities.

Onken in Belgorod

MOSCOW (MT) -- Top German dairy-product maker Onken plans to launch the first stage of a yogurt plant in the Belgorod region in late 2002 or early 2003, Prime-Tass reported Onken's Russia chief as saying Monday.

The construction of the plant's first 15.3 million euro ($13.7 million) production line began in summer 2000. The plant is expected to process 100 tons of milk a day in its first stage, Alexei Scherbakov told reporters.

WB Director Quits

MOSCOW (MT) -- Russia's director at World Bank headquarters in Washington, Andrei Bugrov, has resigned from his post and will join the Interros holding.

Bugrov said Monday that after eight years as a World Bank board member for Russia, he decided to return and work in the private sector. He will begin work as a deputy chairman of Interros March 1.

Russia Still Blacklisted

MOSCOW (MT) -- The OECD's Financial Action Task Force has kept Russia on its blacklist of countries and territories considered "noncooperative" in fighting money laundering, even as the country's new Financial Monitoring Commission swings into action.

At a plenary session in Hong Kong on Saturday, the FATF reviewed the actions taken by the 19 blacklisted countries to improve their position, but left all on the list until at least June.

For the Record

The Tax Ministry collected 986.7 billion rubles ($32.1 billion) in taxes and duties for the federal budget in 2001, 10.9 percent more than the government's target and 26.1 percent more than was written into the federal budget. In total, 1.956 trillion rubles in taxes and duties were paid into budgets at all levels. (MT)

Primary aluminum output rose 1.7 percent year on year to 3.299 million tons in 2001, Prime-Tass reported an official with the Industry, Science and Technology Ministry as saying Monday. (MT)

The State Customs Committee said Monday that it had transferred a total of 40 billion rubles ($1.3 billion) to the federal budget in January, 0.1 percent above target, Prime-Tass reported. (MT)

Nuclear power plants' share in Russia's electricity exports increased to 32.9 percent in 2001 from 24.9 percent the previous year, Interfax reported power monopoly Unified Energy Systems as saying Monday. (MT)

Moscow heat and power utility Mosenergo said Monday it expects to pay a total of 336 million rubles ($10.95 million) in dividends for 2001. No financial results were given. (Reuters)

Alexander Masalsky has been appointed president of Transkreditbank, the Railways Ministry's bank, replacing Dmitry Kormilitsin. (Vedomosti)