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. Last Updated: 07/27/2016

Business in Brief

Russia, EU Relations

COPENHAGEN, Denmark (Reuters) -- Danish Prime Minister Anders Fogh Rasmussen stressed Tuesday that increased economic cooperation with Russia was of great importance along with the enlargement of the European Union.

Denmark takes over the six-month rotating EU presidency from Spain on July 1, during which up to 10 Eastern and Central European states are expected to wrap up negotiations to become full members of the EU in 2004.

China Loan Offer

BEIJING (Prime-Tass) -- China has offered Russia a $1.5 billion trade loan to finance exports of Chinese goods into Russia, Itar-Tass quoted Deputy Prime Minister Viktor Khristenko as saying Monday.

"This is the largest loan of its kind ever offered by China," Khristenko said. But he added that the Russian government would not agree to provide state guarantees on the loan, as proposed by the Chinese side.

Oil Cut to be Cut

WASHINGTON (Reuters) -- Finance Minister Alexei Kudrin said Monday Russia would not continue its cut in crude oil output after the second quarter of 2002 ends in June.

"We are not planning to try and fight the trends in this area. We only wanted to soften the rapid drop [in oil prices]," Kudrin said. He did not elaborate.

$10M Brewery Planned

ST. PETERSBURG (Prime-Tass) -- St. Petersburg-based brewer Tinkoff plans to begin production at a $10 million brewery in the town of Pushkin in the Leningrad region in September, a company representative said Tuesday.

The planned monthly capacity of the plant is 1.5 million 0.33-liter bottles in the first stage.

Credit, Lease Deal

MOSCOW (MT) -- The European Bank for Reconstruction and Development and the Moscow branch of Raiffeisenbank Austria are offering $12 million in credits for Russian mining and construction companies, the EBRD said Tuesday in a press release.

The credits will be used to lease equipment from the U.S.-based Caterpillar machine producer. The EBRD is providing $8 million and Raiffeisenbank $4 million.

UES Board Reshuffle

MOSCOW (MT) – Deputy Energy Minister Viktor Kudryavy has been removed as a state representative on Unified Energy Systems' board of directors, Interfax reported Monday.

Kudryavy will be replaced by another deputy energy minister, Anatoly Yanovsky. Prime Minister Mikhail Kasyanov ordered the reshuffle.

Kudryavy was well-known as a fierce opponent of the national power grid's planned restructuring.

Road Proposal

MOSCOW (MT) -- The European Bank for Reconstruction and Development has proposed a 250 million euro ($222.5 million) loan to Russia to build two major roads, the Dow Jones news agency reported Tuesday.

The as yet unapproved loan, which is to be reviewed by the EBRD board of directors in July, will provide funding towards the construction of the St. Petersburg bypass and a 2,165-kilometer road linking Chita with Khabarovsk.

Restructure Plan

MOSCOW (MT) --United Heavy Machinery is restructuring its mining tools unit, Gornoye Oborudovaniye, in advance of a possible sale, Dow Jones reported the No. 1 machine maker as saying Tuesday.

"We want to turn this unit into a large subsidiary with its own balance sheet and budget that can in future operate independently," Dow Jones quoted UHM general director and principal owner as saying.

Sport Fund Plan

MOSCOW (Vedomosti) -- The Moscow regional government has given preliminary approval to a plan to find $200 million in investment to build 67 sports facilities in the region.

The money is to be invested over three years and the government has promised to commit $40 million to the project, said Sergei Baranov, deputy chairman of the regional government's sports committee.

For the Record

The government plans to build up about $6 billion in a reserve fund by the end of the year to pay foreign debts in 2002, Deputy Finance Minister Alexei Ulyukayev said in an interview with Itogi magazine. (Prime-Tass)

The key task for the government this year is to reduce annual inflation to 14 percent, Itar-Tass quoted Prime Minister Mikhail Kasyanov as saying Tuesday. (Prime-Tass)

The average increase in monthly state pensions will total 360 rubles ($11.50) this year, State Pension Fund Chairman Mikhail Zurabov said Tuesday. (Prime-Tass)

State auctions for assigning commercial fishing quotas have already generated revenues of 7.716 billion rubles ($247 million) this year, compared with the federal budget's 2002 target of 5.8 billion rubles, an Economic Development and Trade Ministry spokesman said Tuesday. (Prime-Tass)

Gold output increased 20.6 percent year on year to 19.726 tons in the first quarter of this year, a senior official with the state depository of precious metals Gokhran said Tuesday. (Prime-Tass)

Metals major SUAL raised its secondary aluminum output 4 percent year on year to 151,700 tons in the first quarter, the company said Tuesday. (Reuters)

The Anti-Monopoly Ministry has approved the consolidation of local telecom companies in the Siberian Federal District, Siberian Telecom said in a statement Tuesday. (Prime-Tass)