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. Last Updated: 07/27/2016

Business in Brief

New Rosneft Valuation

The Federal Property Management Agency asked Morgan Stanley to revise a valuation of Rosneft that the investment bank submitted last week, Interfax reported Tuesday, citing an unidentified agency official.

The valuation did not comply with Russian legislation, Interfax said, without saying how much Morgan Stanley estimated Rosneft was worth.

Russia plans to have state-owned Rosneft buy shares in Gazprom to boost the government's stake in the gas monopoly to more than 50 percent, the Economy Ministry said May 17. (Bloomberg)

Rosneft Reserves Quadruple

Rosneft's proven oil reserves quadrupled to 9.3 billion barrels after it bought in December the key oil unit of stricken oil major Yukos, Yuganskneftegaz, the company said Tuesday.

Rosneft said it had proved reserves of just 328 million tons (2.4 billion barrels) before it acquired Yuganskneftgaz after the government auctioned off the unit to recover back tax debts from Yukos.

Rosneft reserves are second-largest in Russia after LUKoil with over 20 billion barrels. (Bloomberg)

Rosneft Income Up 33%

Rosneft said Tuesday that 2004 net income rose 33 percent to 31.7 billion rubles ($1.1 billion) on higher output and oil prices.

Net sales rose 27 percent to 133.3 billion rubles, while gas output rose 31.6 percent to 9.2 billion cubic meters, Rosneft said.

Proven oil reserves, including Yugansk, stood at 1.27 billion tons (9.29 billion barrels). (Bloomberg)

Novatek Approval Delayed

Igor Artemyev, head of state antitrust agency, said Tuesday that he would delay the approval of French Total's purchase of a 25 percent stake in independent gas firm Novatek until after Novatek's IPO.

Total announced last September that it would buy a blocking stake in Russia's No. 2 gas company, but the deal has become bogged down in a antitrust investigation and wrangling over price.

Novatek has said that French investor could end up owning less than a previously agreed 25 percent of Novatek's shares or pay more when the two companies re-examine a deal between them.

The price tag of the deal was never disclosed but market analysts estimate it to be worth around $1 billion. (Reuters)

UAE Denies Dragon Talks

Emirates National Oil, the state-owned United Arab Emirates oil company, said it was not in talks to sell Dragon Oil to LUKoil.

"Emirates National Oil remains the majority shareholder in Dragon Oil and has not divested any part of its equity and is not in talks with LUKoil to sell its shares in Dragon Oil,'' Hussain Sultan, the CEO of Emirates National Oil, said Tuesday.

The statement came in response to a Vedomosti report saying that LUKoil agreed to buy 52 percent of Dragon Oil, a Dublin-registered company that mostly produces oil in Turkmenistan. (Bloomberg)

Power Machines Profit Up

Siloviye Mashiny, or Power Machines, whose takeover by Siemens was blocked by antitrust authorities last month, said that 2004 profit more than tripled as sales almost doubled.

Net income was $10 million, compared with $3.2 million a year earlier, the turbine maker said Tuesday.

Sales rose 88 percent to $662 million while earnings before interest, taxes, depreciation and amortization rose 68 percent to $79.9 million, power-turbine maker said. (Bloomberg)

Polyus in Merger Talks

Polyus, the gold arm of Norilsk Nickel, is in merger talks with several companies including Canada's Kinross Gold, Polyus president Yevgeny Ivanov said Tuesday, Interfax reported.

Norilsk had supported a failed hostile bid for Gold Fields that was made by fellow South African producer Harmony Gold Mining, which collapsed last week.

Polyus chairman Valery Rudakov said Monday that the company might buy Norilsk's 20 percent stake in Johannesburg-based Gold Fields. (Bloomberg)

Beef Import Duty to Drop

Russia will cut an import tariff on beef shipped above its import quota to 40 percent from 60 percent to rein in domestic prices, the government said Tuesday.

Moscow has restricted meat imports by quotas to protect domestic producers. This year Russia may import 430,000 tons of frozen beef and 27,500 tons of fresh and chilled beef at a discount tariff rate of 15 percent but no less than 20 euro cents per kilogram.

Beef imports above the quota are currently liable to a tariff of 60 percent but no less than 60 euro cents per kilogram for frozen beef and 80 euro cents for fresh and chilled beef. (Reuters)