Install

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

. Last Updated: 07/27/2016

Business in Brief

Sberbank's Low Rates



Sberbank, the country's biggest lender, will pay the lowest-ever interest rate for a Russian company when it borrows $1 billion over three years, according to bankers arranging the unsecured loan.

Sberbank is beating its own record by agreeing an interest rate of 30 basis points over the London interbank borrowing rate, a benchmark for borrowing, said bankers involved in the deal who asked not to be named. (Bloomberg)




Vneshtorg Stake Confirmed



TOULOUSE, France -- European Aeronautic, Defense & Space Co., the parent of plane maker Airbus, said state-owned bank Vneshtorgbank had bought a 5 percent stake in the company.

"We got notification late Friday," Michael Hauger, an EADS spokesman, said late Sunday. The stake is worth about 922 million euros ($1.17 billion) at Monday's share price. (Bloomberg)




Gas Capacity Disclosures



Gazprom will have to disclose the available capacity in its network to independent producers, Vedomosti said Monday, citing a draft resolution from the Federal Anti-Monopoly Service.

The new rules will require Gazprom to count its units' need for capacity as its own when calculating free space in its system, Vedomosti reported, citing the deputy head of the service, Anatoly Golomolzin. Independent producers will be fined for over- or undersupplying gas to the pipeline according to the resolution, the newspaper said. (Bloomberg)




Ministry Wants Tax Info



The Industry and Energy Ministry wants access to tax information filed on projects led by ExxonMobil, Royal Dutch Shell and Total under so-called production sharing agreements, Vedomosti said, citing a government report.

The ministry wants to compare expenses on the three projects with information from tax returns, Vedomosti said Monday, citing an interagency report on production sharing agreements in 2005. (Bloomberg)




Mazeikiu Output Falls



Mazeikiu Nafta's refining output fell 4.5 percent in August after the company, the only oil refiner in the Baltic states, stopped receiving Russian supplies of crude oil through a pipeline.

Mazeikiu refining output dropped to 715,000 tons of crude oil in August, compared with 749,000 ton output last year, the Juodeikiai, Lithuania-based company said in an e-mailed statement Monday. (Bloomberg)




LUKoil's Refinery Plans



LUKoil, the nation's biggest oil producer, may build a refinery in the Kaliningrad or Tver region if it cannot buy one, Interfax reported, citing deputy CEO Leonid Fedun.

LUKoil is waiting for the outcome of the sale of assets from bankrupt Yukos, which include the Kuibyshev oil refinery, before it decides whether to build a refinery in Russia, the news agency reported, citing comments by Fedun on Sept. 9. (Bloomberg)




Imperial Loss Widens



Imperial Energy, a British company that explores for oil and natural gas in Russia and Kazakhstan, said its first-half loss widened as it more than doubled spending on exploration and appraisal of wells.

The loss was 3.9 million pounds ($7.3 million), or 9.69 pence per share, compared with 1.9 million pounds, or 7.94 pence, in the year-earlier period, Imperial said Monday in a Regulatory News Service statement. Exploration and appraisal spending jumped to 18.1 million pounds from 8.6 million pounds in the year-earlier period. (Bloomberg)




Yukos CEO's Assets Sought



Prosecutors are still searching for assets belonging to jailed billionaire Mikhail Khodorkovsky, the former Yukos head convicted last year of fraud and tax evasion, Interfax reported.

The Court Marshals Service and the Prosecutor General's Office are searching for property belonging to Khodorkovsky and Platon Lebedev under the sentencing terms of the former partners' convictions, said Nikolai Vinnichenko, head of the service, said Monday without elaborating, Interfax reported. (Bloomberg)




Mosenergo to Raise $1.5Bln



Mosenergo plans to raise as much as 800 million pounds ($1.5 billion) in a share sale in London, The Independent reported, without saying where it got the information.

Mosenergo will hold a meeting to discuss its restructuring plans with its largest shareholder, Unified Energy Systems, which owns 51 percent of Moscow's main utility, on Sept. 20, the newspaper said. (Bloomberg)




Amur Expands Exploration



Amur Minerals Corp., a company that explores for nickel and copper in the Far East, expanded a project to find the metals.

The length of the Maly Krumkon project has nearly tripled to at least 1.5 kilometers, British Virgin Islands-based Amur said Monday in a Regulatory News Service statement. Nickel and copper are present over an area of approximately one kilometer, Amur said. (Bloomberg)




Polyus' Biggest Gold Reserve



Polyus Gold, the country's No. 1 gold producer, said it was chosen for a joint reassessment of the country's biggest untapped gold reserve, making it favorite to win an auction for a license to mine the deposit.

Drilling and analysis of the Sukhoi Log deposit in Siberia will be conducted between the third quarter of this year and the first quarter of 2007 together with the Central Exploration and Research Institute for Non-Ferrous and Precious Metals, Polyus said in a statement Monday. (Bloomberg)




Boeing, Russia to Cooperate



Boeing, the world's second-biggest commercial aircraft maker, signed a contract with a Russian state research center to test fuselage panels for the new 787 Dreamliner model.

The contract with the Central Aerohydrodynamic Institute is valued at "many millions" of dollars, Sergei Kravchenko, head of Boeing's Russian operation, told journalists at a press conference Monday in Moscow. (Bloomberg)




State to Sell KamAZ Shares



The government may sell shares in KamAZ, the country's biggest truck maker, in early 2008, Interfax reported, citing Economic Development and Trade Minister German Gref.

The money raised from the sale would be used to develop KamAZ into an internationally competitive truck company and to ensure it is not "swallowed" by rivals, Interfax reported, citing Gref. (Bloomberg)




EBRD Buying Into Sitronics



The European Bank for Reconstruction and Development will pay $80 million for a 3 percent stake in Sitronics, a technology company, valuing it at $2.6 billion ahead of an initial public offering, Vedomosti reported Monday.

EBRD and Sitronics have agreed to lower the stake from the initial five percent as the company has increased in value, the newspaper said, citing an unidentified person in Sitronics' parent company Sistema. Sitronics and the EBRD will sign the purchase contract in the next few days, Vedomosti said. (Bloomberg)




Sulfuric Acid Plant Opened



Kazatomprom, Kazakhstan's state-controlled uranium producer, opened the first of two planned sulfuric acid plants to help increase production.

Sulfuric acid is used to extract uranium from the ground through leeching and the new mill will supply Kazakhstan's expanding industry, Kazatomprom said in an e-mailed statement Monday. (Bloomberg)




Turkish Glass in Russia



Turk Sise & Cam Fabrikalari, Turkey's biggest glassmaker, opened its third factory in Russia after a $78 million investment, Milliyet said.

With the new plant Sisecam, as the company's known, increased its total investment in Russia to $200 million and its production capacity in the country to 740,000 tons, Milliyet said. Sisecam targets annual sales of $70 million from the new factory in the Urals city of Ufa, the newspaper said. (Bloomberg)




VimpelCom to Go East?



VimpelCom, the country's second-largest mobile phone company, may be able to get licenses to offer wireless services in the Far East at auctions planned for next year, as it seeks full coverage in the country.

The company would have "excellent chances" of winning licenses in some of the regions where it now lacks permits, Andrei Beskorovainy, head of the Federal Communications Agency, told reporters Monday. (Bloomberg)




Gorky Parking Lot



A hotel, theater and underground parking for 1,000 cars will transform the face of Gorky Park in the coming years, Kommersant reported last week.

A 200-room hotel and musical theater will be constructed to the left of the 69-year-old park's main entrance, with the parking underneath, said Alexander Kuzmin, the city's chief architect, the newspaper reported.

City Hall signed an order in 2004 saying that the park needed to be reconstructed in the coming years, but Kuzmin did not say when the facelift could be expected. (MT)




No Apartment Unowned



Apartments of deceased property-holders with no heirs should be turned over to the city, the Moscow City Duma said last week in a recommendation sent to federal authorities, Interfax reported.

"Escheated property is turned over to the state according to the Civil Code," Eduard Yakushenko, deputy head of the residential political and residential fund department of the city duma, said last Wednesday, the news agency reported.

Yakushenko said that in the last few years hundreds of such apartments had piled up in Moscow, but the city was unable to manage them despite wasting tens of millions of dollars on their utilities each year. (MT)




Spartak Freed of Its Chains



Spartak football club could have its own stadium by the end of 2008, the first time in the 74-year-old team's recent history it would have its own grounds, Interfax reported.

Alexander Kuzmin, the city's chief architect, said last week that by that time a stadium could be built on the Tushkinsky Aerodrome.

The Federal Property Management Agency gave the team permission to build a stadium on the airfield earlier in the week.

The club is planning to erect a 35,000-capacity stadium, with a price tag of approximately $150 million, Biznes reported last week. (MT)




Statue Halts Work



Insufficient deference shown to the iconic "Worker and Kolkhoz Girl" statue has slowed plans to build a hotel, office, and business center near the All-Russia Exhibition Center, City Hall said Thursday on its web site.

"The sculpture should be the dominant force, and all surrounding buildings should highlight her power and greatness," Luzhkov said after reviewing three designs for the development and finding that they overwhelmed the statue.

The sculpture was built in 1937 by Vera Mukhina and has stood from that time near the exhibition center, where it will be returned to after restoration work. (MT)




A Smarter City



Half of the city's buildings should be built by student construction groups, Oleg Pilshchikov, the head of the city government's family and youth affairs committee, said Friday, City Hall said on its web site.

"Maybe not 100 percent, but 50 to 60 percent of the buildings in Moscow would be built by the hands of students," Pilshchikov said at a news conference Thursday, the web site reported.

"At the present time, there's a gap of legislation regarding this question," he said. (MT)