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. Last Updated: 07/27/2016

Business in Brief

TNK-BP to Sell Slavneft Oil

TNK-BP, said Tuesday that it had agreed with Sibneft, its partner in the Slavneft joint venture, that it would begin marketing half of Slavneft's production from July 1.

TNK-BP vice president Jonathan Kollek said the firm would export between 300,000 and 400,000 tons per month (73,000 and 98,000 barrels per day) of Slavneft crude under the deal.

TNK-BP's remaining share of Slavneft production, between 600,000 and 700,000 tons of crude per month, would go to Slavneft's traditional refining destinations. (Reuters)

VimpelCom Forecasts

VimpelCom, Russia's No. 2 mobile company by subscribers, expects stable revenue per user "in the coming months" amid growth in sales of entertainment and Internet services, CEO Alexander Izosimov said.

Mobile use in Russia will probably expand this year at the same pace as in 2004, Izosimov said Tuesday at an investment conference organized by Renaissance Capital. The company expects its margin on operating income before debt and amortization to be 45 percent to 50 percent in the long term, he said. (Bloomberg)

New $13M Farmland Fund

The Agana management company has announced the creation of Russky Pomeshchik, or Russian Landlord, the country's first mutual investment fund aimed at buying agricultural land.

The 360 million ruble ($13 million) closed fund will be devoted to acquiring shares in Russian agricultural companies that own undervalued land, with the expectation that the land will grow in price as the Russian land market evolves.

Agana, which as of June 17 had 1.19 billion rubles ($42 million) under management, operates four nonstate pension funds, as well as five open and two closed mutual investment funds. (MT)

Rostik Alliance in Offing

Rostik International will announce a major "strategic alliance" on Friday, the restaurant giant's president said Tuesday.

Rostislav Ordovsky-Tanayevsky Blanko said he was legally barred from revealing any additional details about the deal.

The alliance will require Rostik to undergo major restructuring, Rostislav Ordovsky-Tanaevsky Blanco said at an investment conference organized by Renaissance Capital.

Last month, media reported that American fast-food giant Yum! was in talks with Rostik to buy a stake in fried chicken chain Rostik's. (MT)

VSMPO-Avisma IPO in '06?

The world's top titanium producer, Russia's VSMPO-Avisma, plans an initial public offering abroad in the first half of 2006, board chairman Vyacheslav Bresht said Tuesday.

"It's our strategic goal and we will be following it," he told an investment conference organized by Renaissance Capital. The IPO will come after the merger of VSMPO and Avisma is completed, which Bresht said was expected by July 2005. (Reuters)

Russneft Denials

Russneft denied buying Yukos' 34 percent stake in Geoilbent and suing to stop LUKoil from buying the rest of the Siberian oil company, Russneft vice president Eduard Sarkisov said.

Kommersant, citing unidentified people close to Yukos, reported Tuesday that Russneft had bought Cyprus-registered Broadwood Trading & Investments, formerly Yukos Operational Holding. Broadwood owned the Yukos stake in Geoilbent. (Bloomberg)

Irkut to Appoint CEO

Aircraft producer Irkut may select chairman Oleg Demchenko as the company's CEO, replacing Valery Bezverkhny, Vedomosti reported, citing Irkut spokeswoman Elena Fyodorova.

Irkut shareholders will vote on Demchenko's candidacy on Friday, the paper said. The government named Bezverkhny, acting president of Irkut, to head the merger of Russia's largest aircraft makers, Vedomosti reported. The newspaper said Bezverkhny held a 10 percent share of Irkut. (Bloomberg)

Norilsk Not Buying Stake

Norilsk Nickel said it did not plan to buy Harmony Gold Mining's stake in South Africa's Gold Fields for now.

Harmony acquired its 5.4 percent stake in Gold Fields, worth about 1.94 billion rand ($287 million), during a failed bid for the company. (Bloomberg)

TMK Expenditures to $1Bln

Trubnaya Metallurgicheskaya Kompaniya, the world's second-biggest producer of steel pipes, expects to increase capital expenditure to $1 billion by 2010, according to executive director Konstantin Semerikov.

Semerikov was speaking Tuesday at an investment conference organized by Renaissance Capital.

TMK said in September that it plans to sell shares to investors by 2008 and raise $250 million to $300 million selling foreign currency bonds before the share offering. (Bloomberg)