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. Last Updated: 07/27/2016

Business in Brief

$10.2Bln Payment Agreed

BERLIN -- The government on Monday formalized with Germany an early repayment of debt that was agreed between Russia and the Paris Club of creditor nations June 16, the German Finance Ministry said.

As part of the agreement, Russia will repay 8 billion euros ($10.2 billion) in debt and interest ahead of time, the ministry said. Some of the early repayment will go to German Finance Minister Peer Steinbrueck's federal government coffers, the ministry said. (Bloomberg)

Account Surplus Widens

The country's current account surplus widened 22 percent in the second quarter from a year earlier, as oil and natural gas exports boomed amid record international fuel prices.

The second-quarter surplus reached $27.3 billion, compared with $22.4 billion a year earlier, the Central Bank said Monday on its web site. The first-half surplus expanded to $56.8 billion, from $42.8 billion. (Bloomberg)

Spending May Take Bonds

The government may have to sell more bonds on the domestic market next year to fund plans to increase spending on housing, police and roads, Vedomosti said.

The country is considering spending 100 billion rubles ($3.72 billion) next year, the newspaper said, citing Finance Minister Alexei Kudrin. (Bloomberg)

Weekly Inflation At 0.1%

Inflation totaled 0.1 percent in the first week of August, Interfax reported, citing Economic Development and Trade Minister German Gref in a briefing given in Vladikavkaz, North Ossetia.

Andrei Klepach, head of macroeconomic forecasting at Gref's ministry, said Aug. 7 that consumer prices would decline or stay unchanged in August and September. (Bloomberg)

Ruble May Appreciate

The Central Bank may allow the ruble to appreciate by up to 10 percent in 2007 if necessary to curb inflation, according to documents it published Monday.

Ruble appreciation has become the only effective weapon in the bank's fight against inflation, fueled by record prices for the country's oil, gas and metals exports, while interest rate increases have had little impact. (Reuters)

2 RTS Debuts on Tuesday

The Russian Trading System said it would start trading shares of Trubnaya Metallurgicheskaya Kompaniya, the world's second-biggest maker of steel pipes, and Cherkizovo Group, the country's largest meat producer.

Shares of the two companies will start changing hands on the nation's second-largest stock exchange Tuesday, the bourse said Monday. (Bloomberg)

Sberbank Prepares for Loan

Sberbank has hired ABN Amro, Barclays, JPMorgan Chase and Sumitomo Mitsui to arrange a loan of as much as $1 billion, EuroWeek reported.

The banks will start marketing the three-year loan to other lenders next month, the weekly magazine said without saying where it got the information. The loan's interest rate is likely to set a new pricing benchmark for Russian borrowers, EuroWeek said. (Bloomberg)

TNK-BP to Appeal Ruling

TNK-BP will appeal a Moscow court ruling that upheld a back-tax claim of more than 3.5 billion rubles ($131 million) stemming from 2001 operations.

The company won an appeal Oct. 12 that reduced the claim, Kommersant reported. The victory was annulled in December, and at an Aug. 11 hearing, the original claim was upheld. (Bloomberg)

Rosneft IPO Hits $232M

MILAN, Italy -- Rosneft said it had increased its initial public offering by $232 million, less than the maximum it was seeking.

The company sold an additional 31.2 million Global Depositary Receipts as the banks managing the IPO exercised part of the so-called over-allotment option, boosting the total sale to $10.6 billion. The company had set aside as many as 53 million GDRs for the over-allotment option. (Bloomberg)

Rosneft Shares May Decline

Rosneft shares may decline this week now that the "stabilization period" that followed its initial share sale has ended, meaning banks that underwrote the offering will no longer buy stock to support the price, Kommersant reported, citing analysts.

Morgan Stanley and other banks that organized the $10.4 billion IPO spent $200 million to support the shares after the sale, Kommersant reported, citing unidentified individuals familiar with the matter. (Bloomberg)

LUKoil's Turkish Pipeline

ANKARA, Turkey -- LUKoil plans to build a pipeline between Turkey's Black Sea and western coasts to carry processed crude to Europe, Turkish daily Sabah said, citing unidentified members of that country's energy watchdog.

The pipeline will shift the crude, imported from Russia and Kazakhstan, from a refinery LUKoil will build in Zonguldak, on the Black Sea, to the Turkish port city of Izmit, about 100 kilometers southeast of Istanbul, the newspaper said. (Bloomberg)

Chelyabinsk Zinc Gets Mine

Chelyabinsk Zinc Factory, which produces more than 60 percent of the country's zinc, bought the shares of a Swiss trader it did not already own, gaining control of a mine in Kazakhstan.

Chelyabinsk Zinc, a unit of Urals-based Chelyabinsk Pipe Works, bought 49 percent of Nova Trading and Commerce, giving it full ownership of the Akzhal lead and zinc mine, Chelyabinsk Zinc said Monday by e-mail. (Bloomberg)

Vekselberg to Sell Shares

Viktor Vekselberg, who controls the country's second-biggest aluminum producer, SUAL Group, will sell shares in Siberian platinum and gold miner Koryakgeoldobycha next year, Vedomosti said, citing an unidentified source close to Vekselberg's holding company.

Koryakgeoldobycha produces about 3 tons of platinum per year and holds four licenses to mine gold in the Far East, including in the Altai region, the newspaper said. (Bloomberg)

Ford Russia's First Net Loss

Ford, the second-biggest U.S. automaker, reported a net loss last year for its Russian subsidiary for the first time since 2002, as spending almost doubled to support growing sales.

Ford's Russian subsidiary had a loss of 60 million rubles ($2.2 million), compared with net income of 332 million rubles a year earlier, according to company filings through the Spark disclosure system. Sales increased 61 percent, to 39.2 billion rubles under Russian accounting standards. (Bloomberg)

Moscow Orders 600 Buses

BERLIN -- DaimlerChrysler, the world's largest commercial vehicle maker, won a contract worth at least 100 million euros ($127 million) for 600 buses from Mostransavto, the city's state-owned transportation company.

DaimlerChrysler will build the 300 horse-power Mercedes-Benz buses at its Turkish factory, the company said in by e-mail. Mostransavto has a fleet of 6,000 vehicles. (Bloomberg)

Uralkali Profit Tumbles 39%

Uralkali, the world's fourth-largest producer of potassium fertilizers, said first-half profit fell 39 percent on lower sales.

Net income dropped to 2 billion rubles ($74.6 million), from 3.30 billion rubles a year earlier, the company said Monday in a statement. Sales fell 20 percent, to 7.75 billion rubles, from 9.70 billion rubles. (Bloomberg)

Software Exports Up 80%

The country's computer software exports will climb 80 percent this year as global demand for Russian programmers increases, Information Technology and Communications Minister Leonid Reiman said Monday.

Software exports will reach $1.8 billion in 2006, up from $1 billion last year, with exports further jumping to $5.8 billion in 2010, Reiman told reporters.

The country's IT industry will reach $13.5 billion in sales this year, compared with $11 billion in 2004, he said. (Bloomberg)

VimpelCom to Go East

VimpelCom, the country's second-largest mobile phone company, said the Moscow Arbitration Court overruled a government decision to reject a license to offer wireless services in the Far East. The court ordered that the Federal Service on Communications Monitoring, the industry watchdog, issue the license within 10 days, the company said by e-mail Monday. The regulator had earlier denied the company a license in the area. (Bloomberg)