Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Business in Brief

$7.7Bln for Infrastructure

Russia will spend the $7.7 billion it is saving through early repayment of its foreign debt on government projects including roads and bridges, Interfax reported, citing President Vladimir Putin.

During a meeting with key government ministers, Putin ordered that the savings from paying back ahead of schedule the so-called Paris Club of creditor nations be placed into the government's investment fund, Interfax said. (Bloomberg)

Manufacturing Growth

Manufacturing industries grew in June at the fastest pace in almost six years as output, new orders and employment increased, a gauge of industrial output showed.

Narodny Bank's Purchasing Managers' Index advanced for a third consecutive month, to 55.6 in June from 54 in May, the fastest pace since September 2000, the bank said in a statement Monday. A figure above 50 indicates growth, below 50 a contraction.

"The rate of expansion in June was at its strongest in six years, signaling considerable improvements in output, new orders and employment conditions across the Russian manufacturing sector," Dmitri Fedotkin, an economist at MNB Capital Markets, said in the statement. (Bloomberg)

Rosneft IPO Stake Approved

The government approved selling as many as 1.356 billion shares in its initial public offering of Rosneft, the country's biggest IPO ever.

Rosneftegaz, the holding company for the state's stake in Rosneft, has been empowered to sell as many as 1.356 billion shares in the sale, the government said on its web site. That is 14.3 percent of the total, Interfax report.

Rosneft is seeking to raise as much as $11.6 billion in the sale, which closes July 10. The IPO values Rosneft from $60 billion to $80 billion, compared with $64.2 billion for bigger rival LUKoil. (Bloomberg)

Petronas Eyes Rosneft

KUALA LUMPUR, Malaysia -- Malaysia's state-owned oil company Petronas, said Monday it was considering buying shares in Rosneft.

"We have been invited to participate in the IPO," Hassan Marican, Petronas' president and chief executive, was quoted as saying by Malaysian national news agency Bernama."As you know we have only 10 days [left for the final closing]. I can confirm that we have been invited," he said. (AP)

Gazprom Eyes Dutch Pipe

Gazprom may take a 9 percent stake in a pipeline that will connect the Netherlands with Britain, Europe's biggest consumer of natural gas.

Nederlandse Gasunie, manager of the Dutch gas network and a partner in the Balgzand Bacton Line Project that is building the Dutch-British pipeline, may give Gazprom the stake in exchange for a share in a pipeline being built under the Baltic Sea that will link Russia to Germany, a Gasunie executive said.

"We are considering giving Gazprom a 9 percent stake in the BBL pipeline," Pieter Trienekens, a member of Gasunie's executive board, said in an interview in London on Monday. (Bloomberg)

Gazpromneft '05 Profit

Gazpromneft, formerly known as Sibneft, said profit jumped 40 percent last year amid high oil prices.

Net income rose to $2.8 billion from $2 billion the year before, the company said in a statement posted on its web site Monday. Revenue rose 64 percent to $14.6 billion, the company said. Higher operating costs and taxes including export duties trimmed the profit on those sales. (Bloomberg)

Jets Arrive in Venezuela

CARACAS, Venezuela -- Two Russian-made Sukhoi fighter jets, the first of 24 SU-30s that Venezuelan President Hugo Chavez plans to purchase from Moscow, arrived in the South American nation on Sunday, a top military official said.

Air Force Commander Roger Cordero Lara told Venezuelan state-run television the new combat jets would be presented to the public during a July 5 military parade to celebrate the anniversary of Venezuela's independence from Spain. (AP)

Polyus Siberia Deposit

Polyus Gold, the country's biggest gold producer, approved a $328 million project to develop a Siberian gold deposit as part of a plan to triple output by 2012.

The Blagodatnoye deposit in the Krasnoyarsk region is expected to be capable of producing 12 metric tons of gold a year and should start production in 2010, Polyus said in a statement Monday.

Polyus is controlled by billionaires Vladimir Potanin and Mikhail Prokhorov, whose wealth is estimated by Forbes magazine at $6.4 billion each. (Bloomberg)

GM Output Falls 20%

General Motors, the world's largest carmaker, produced 20 percent fewer vehicles at its Russian venture in the first half of 2006 after a dispute over costs with its partner halted production for a week.

GM-AvtoVAZ, which makes the Chevy Niva sport utility vehicle and Viva compact sedan, built 22,746 vehicles in the first six months of the year, compared with 28,290 a year earlier, the carmaker said on its web site Monday. Sales totaled 22,168 units, GM-AvtoVAZ said, without giving last year's figures or a breakdown of numbers for each model. (Bloomberg)

Kyrgyzstan Sale to Fridman

Bitel, Kyrgyzstan's biggest provider of wireless services, plans to sell its assets to Altimo, the telecommunications arm of billionaire Mikhail Fridman's Alfa Group.

Bitel said on July 1 on its web site it planned to sell the company's assets and liabilities to Sky Mobile, a holder of global system for mobile communications license in Kyrgyzstan, for an unidentified sum. Altimo bought Sky Mobile last week. (Bloomberg)

BP Cool on Rosneft

LONDON -- Oil giant BP is unlikely to take up an offer to buy a minority stake in Rosneft because the move lacks strategic appeal and carries too much reputational risk, sources close to the situation said on Monday.

Rosneft has asked a number of international oil companies to buy into the flotation, which plans to raise $11 billion, to help ensure its success, sources said last week. However, BP has no current plans to participate. (Reuters)

Rostelecom '05 Net Falls

Rostelecom, the country's biggest long-distance telephone company, said profit fell 77 percent last year, more than analysts anticipated, because it wrote down the value of assets including equipment.

Net income declined to 978 million rubles ($36.4 million) from 4.3 billion rubles a year earlier, the company said in a statement Monday. (Bloomberg)

Developer Looks West

Open Investments, the country's only publicly listed development company, could become the first Russian developer to list on a Western exchange. An Open Investments shareholders meeting approved an additional share emission, worth 4.87 billion rubles ($180 million), a move described by a source close to investors as a "technical step toward a possible listing on a Western exchange." (Vedomosti)

Stadium for Office Project

The Moscow region administration is considering building a massive office and recreational center at the intersection of the Moscow Ring Road, or MKAD, and Leningradsky Prospekt, The Business newspaper reported, citing a source in the administration of the Khimki region.

The complex would include 550,000 square meters of office space, a yacht club and a 20,000-seat stadium. (MT)