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. Last Updated: 07/27/2016

Business in Brief

Transneft Approves Sale

The board of oil-pipeline operator Transneft approved a plan to swap new shares for the national oil-product pipeline operator, Industry and Energy Minister Viktor Khristenko said Tuesday.

State-run Transneft will acquire Transnefteprodukt, the product pipeline company, by the end of the year, Khristenko said. (Bloomberg)

Turbines Firm CEO Named

Power Machines, the country's largest turbine maker, said in a statement on its web site Tuesday that it had appointed Igor Kostin as chief executive.

Kostin, deputy director of Severstal, replaces Boris Vainzikher, the company said.

Billionaire Alexei Mordashov, CEO of steelmaker Severstal, bought 30 percent of Power Machines from fellow billionaire Vladimir Potanin last month. Mordashov on Oct. 5 agreed with Siemens, Germany's largest engineering company, which has a 25 percent stake in the turbine maker, to share control. (Bloomberg)

Evraz Buys Palini e Bertoli

Steelmaker Evraz Group said Tuesday that it had bought complete control of Italian steel company Palini e Bertoli.

Evraz exercised a call option to buy another 25 percent of the plate maker -- in addition to the 75 percent stake it already had -- at 76 million euros ($108 million).

Evraz bought 75 percent plus one share of Palini e Bertoli, which is based in Italy's northern industrial region, in 2005. (Reuters)

Severstal Opens U.S. Mill

Severstal, the country's largest steelmaker, started production at the 1.5-million-ton SeverCorr steel mill in Columbus, Mississippi, the company said in a statement on its web site Tuesday.

SeverCorr, a venture with a team of U.S. steel executives, is producing steel for cars, pipes, construction and machines, the steelmaker said. SeverCorr will benefit from being close to new car plants being built in the south of the United States, the company said. (Bloomberg)

Chelyabinsk Sells to Ukraine

Chelyabinsk Zinc Plant, producer of about 60 percent of the country's zinc, started direct sales to Ukraine and Belarus, the company said in a statement Tuesday.

It will ship 5,300 tons to the Ukraine and 500 tons to Belarus in 2007, the company said. The zinc producer started sales to the Britain earlier this year and plans to ship 6,000 tons of the metal to the country in 2007. Shipments will more than triple to 20,000 tons next year, the company said. (Bloomberg)

Borrowings Exceed $300Bln

Outstanding borrowing by Russian banks and companies topped $300 billion, which could reduce liquidity in the banking industry, Central Bank deputy chief Alexei Ulyukayev said.

The tens of billions of dollars needed to pay off the debts was an economically significant amount, Ulyukayev was cited as saying at a meeting between the Central Bank and commercial bank chiefs in a press release issued by the Association of Russian Banks on Tuesday. (Bloomberg)

Uranium Reserves Revealed

Russia, the world's biggest energy producer, has more than 1 million tons of uranium reserves, Federal Atomic Energy Agency chief Sergei Kiriyenko said Tuesday.

Russia is building nuclear power plants and increasing uranium reserves as electricity demand grows faster than generation, threatening to curb a nine-year economic boom. (Bloomberg)

LG to Develop Uranium

SEOUL, South Korea -- LG International, a South Korean trading company, plans to develop uranium and coal deposits in the Sakha republic, the company said in a statement Tuesday.

LG signed a contract with the Sakha government to develop a $200 million coal mine project and also agreed to join a $2 billion uranium venture, the company said. (Bloomberg)

TGK-1 Purchase Approved

Gazprom received its board's approval to buy a stake in St. Petersburg-based power generator TGK-1, Gazprom said.

The board of directors of Gazprom also approved the purchase of Russian Energy Projects, Gazprom said in a statement Monday.

Russian Energy Projects was acting in Gazprom's interest when it bid for a stake in TGK-1 in September and won the auction, according to the statement. (Bloomberg)

BP's Income in TNK Drops

BP reported Tuesday that its share in net income of its TNK-BP joint venture more than halved in the third quarter of 2007, year on year, because of a one-time gain in the third quarter of 2006.

BP, which holds 50 percent in the country's third-largest oil producer, said its share in TNK-BP's net profit fell to $672 million in the third quarter of 2007 from $1.52 billion in the same period of last year. (Reuters)

36.6 Plans to Raise $112M

Pharmacy chain 36.6, the country's largest drugstore chain, plans to raise $112 million in a secondary share sale to fund store openings and acquisitions.

The company on Tuesday began selling 1.5 million new shares for 1,889 rubles ($75.80) each on the RTS and MICEX, said Maxim Arkhipov, head of corporate finance at the retailer. (Bloomberg)

Military Wages to Be Raised

The government will increase civil servants' salaries by 15 percent from Dec. 1, the Kremlin's press service said in a statement.

President Vladimir Putin has signed the decree, approving the changes, the statement said Monday.

Pensions for military personnel will also be increased by 15 percent from Dec. 1, Health and Social Development Minister Tatyana Golikova said. (Bloomberg)

LUKoil Plans New Refinery

LUKoil, the Russian oil producer with the most overseas assets, plans to officially resume operations at its refinery in Odessa, Ukraine, on Oct. 26 following a two-year upgrade, a company spokesman said Tuesday.

The Odeskiy Naftopererobnyi Zavod refinery has been processing crude this month in preparation, the spokesman said. LUKoil CEO Vagit Alekperov plans to attend the opening ceremony, he said. (Bloomberg)

Tourism to Cyprus Boosted

ATHENS -- Cyprus' income from tourism rose in the eight months through August as visiting Russians and Italians spent more on the island, Cyprus's national statistics agency said Tuesday in a statement.

Higher tourist spending compensated for unchanged visitor numbers. Italians and Russians spent about 1,080 euros ($1,540) each in August, respectively 8.5 percent and 5.1 percent more than the previous year. (Bloomberg)