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. Last Updated: 07/27/2016

Business in Brief

Oil, Gas 65% of Market

MOSCOW (Prime-Tass) -- Oil and gas companies account for 65 percent of the capitalization of the stock market, down from 85 percent a year ago, according to Federal Securities Commission Chairman Igor Kostikov.

"This proves that the market is becoming more diversified and less dependent on oil and gas prices," the stock market watchdog chief told senior officials of the New York Stock Exchange.

Kostikov also said that Russians have about $20 billion in cash savings because they do not trust banks or the stock market, he said.

Fluor-LUKoil Terminal

MOSCOW (Prime-Tass) -- American Fluor Corp. and LUKoil will build a crude oil and petroleum products export terminal near St. Petersburg on the Gulf of Finland, Fluor said in a press release late Monday.

Fluor and its consortium partner, LUKoil Neftegazstroi, or LNGS, have signed a lump-sum turnkey engineering, procurement and construction contract for the project, which is expected to be complete in December 2004. LNGS is LUKoil's construction subsidiary.

The value of the contract for Fluor is $330 million.

The terminal will enable LUKoil to export additional quantities of crude and oil products annually by December 2004.

Usmanov Side Business

MOSCOW (Bloomberg) -- Alisher Usmanov, who runs Gazprom's investment arm, has bought more shares in Corus Group, giving him a 7.42 percent holding in Europe's third-largest steelmaker, the London-based company said Tuesday.

Usmanov, through Nicosia, Cyprus-based Gallagher Holdings, owns 329 million Corus shares, the company said in a Regulatory News Service statement. He owned almost 223 million shares according to an RNS statement on Sept. 26.

Corus sold 1.3 billion new shares at 23.5 pence each last month, raising ?307 million ($536 million) to pay for plant closures and job cuts as it seeks to end four years of losses. Existing shareholders were offered five new shares for every 12 already held.

Steel Stake for Sale?

MOSCOW (Bloomberg) -- Ukraine may sell a stake in Krivorozhstal, the country's biggest steel mill, Interfax reported Tuesday, citing Mikhail Chechetov, chairman of the State Property Fund, who did not give any further details.

Krivorozhstal controls one-fifth of Ukraine's steel market, the news service said.

Ukraine produced 3.2 million tons of steel in October, according to the International Iron and Steel Institute information.

Isuzu Eyes Ukraine

TOKYO (AP) -- Japan's Isuzu Motors is considering assembling trucks in Ukraine in an effort to develop new overseas markets, a company spokesman said Tuesday.

The move could lead to the establishment of the first production base set up by a Japanese truck manufacturer in that country.

The potential move reflects Isuzu's efforts to develop new overseas markets with high growth potential in areas such as Eastern Europe and the Middle East.

Analysts and automakers expect Japan's truck market to shrink once domestic demand for more environmentally friendly diesel engines fades. Japanese demand for trucks is now strong due to the recent introduction of stiffer exhaust restrictions.

Isuzu is considering exporting truck parts to a Ukrainian busmaker, Holding Bogdan, for the assembly of small and mid-size trucks, a spokesman told Dow Jones Newswires.

The Japanese automaker formed an alliance in 1999 to supply bus parts to Holding Bogdan.

Sibir Traffic Up 26%

MOSCOW (Prime-Tass) -- No. 2 domestic airline Sibir carried 26 percent more passengers in January to November than it did in the same period last year, the company said Tuesday.

The carrier flew 8.69 million passenger-kilometers, while raising cargo volumes 20 percent to 839.8 million ton-kilometers.

In November alone, Sibir carried 240,300 passengers, up 45.3 percent on the year.

Sibir expects to carry more than 3.4 million passengers in 2003, up from 2.7 million last year.

Total Wins Tender

BAKU, Azerbaijan (Reuters) -- Azeri state oil firm SOCAR said Tuesday it had awarded a tender for a million-barrel Urals cargo from the Black Sea port of Novorossiisk to French oil major Total.

The cargo is scheduled to load on January 17-18.

SOCAR exports its crude from two ports -- Novorossiisk in Russia and Supsa in Georgia.