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. Last Updated: 07/27/2016

Business in Brief

Russky Standart to Relocate

Rustam Tariko's Russky Standart bank will move its headquarters from Moscow to St. Petersburg, following a number of state-run companies, Vedomosti reported Monday.

St. Petersburg offers good communication links to Europe and is less crowded than Moscow, the newspaper said, citing company spokesman Preston Mendenhall. The bank's board on Friday decided to put the question to shareholders, the paper said. (Bloomberg)

Tatneft Halts Oil to Refiner

Ukraine said Monday a shortage of crude had forced it to close part of its largest oil refinery, Kremenchug, while the top supplier, Tatneft, confirmed it had halted oil flows to the plant.

A conflict between management groups at Kremenchug was behind Tatneft's decision, the Russian company said.

"We are not supplying crude there so far. We are waiting for the situation to be settled," Tatneft's spokesman Rustam Rafikov said. (Reuters)

Areva Wins $130M Deal

France's Areva has won a $130 million contract to produce and supply electrical equipment for a 600,000-ton aluminum smelter being built in Siberia, the project owners said Monday.

United Company RusAl, the world's top producer of primary aluminum, and hydroelectric power company HydroOGK said in a joint statement that Areva would supply two silicon rectifier substations and a gas-insulated dispenser system for the Boguchany smelter. (Reuters)

Transneft Takes Imperial Oil

Imperial Energy, the London-based oil producer with assets in Siberia, began shipping oil via pipeline monopoly Transneft, the company said Monday.

Imperial also increased output by 33 percent in the past six weeks to 8,500 barrels per day, the company said. (Bloomberg)

Kudrin Sees Gold Prices Fall

NEW YORK -- Finance Minister Alexei Kudrin suggested that the price of gold might decline because of a potential increase in production after the Natalka field was confirmed as the world's third-largest deposit of the precious metal.

"The price of gold depends not only on the volatility of currencies but also on the accessibility of the fields," Kudrin said at a press briefing in Washington on Saturday in remarks embargoed until Sunday. "Taking into account an increase in production, I can't predict the price." (Bloomberg)

Rosneft Seeks Intermediary

Rosneft is likely to seek a new intermediary for the $3.4 billion sale of a 50 percent stake in its Tomskneft unit, Vedomosti reported Monday.

State-owned Vneshekonombank, which gained Federal Anti-Monopoly Service permission last week to buy a controlling stake in Tomskneft, probably will not act as intermediary on behalf of Gazprom's oil unit, Vedomosti said, citing unidentified people close to the bank and Rosneft. (Bloomberg)

Sibir Hits Output Landmark

Russia-focused, London-listed oil company Sibir Energy said Monday that its joint venture with Shell in west Siberia exceeded a landmark production level of 100,000 barrels per day.

"Today's announced 100,000 bpd production rate at Salym, a month ahead of schedule, represents … a major milestone for the project," Sibir chief executive Henry Cameron said. (Reuters)

Sibir Begins Drilling at Well

Sibir Energy began drilling its first exploration well at the Koltogorsky blocks in the Khanty-Mansiisk autonomous district in western Siberia, the company said in a statement Monday.

The well was spudded at Block 14 and will take 65 days to reach a depth of 3,050 meters, Sibir said. (Bloomberg)

Novorossiisk Sets IPO Aim

Novorossiisk Commercial Sea Port, the country's largest commercial seaport operator, said Monday it is aiming for a valuation of between $3.9 billion and $4.9 billion when it floats up to 20 percent of its shares this year.

The company set an indicative price range of $0.2027 to $0.2560 per share and $15.20 to $19.20 per Global Depositary Receipt for the initial share offering, which is planned for November or December. (Reuters)

Kuzbass Plans Output Boost

ROME -- Russia plans to spend 853 billion rubles ($34.4 billion) expanding output in its biggest coal-producing area by about 50 percent by 2025, Valentin Mazikin, vice governor of the Kemerovo region, said in prepared remarks for a Coaltrans coal conference in Rome on Monday.

Kuzbass's production will rise to 270 million tons by 2025 after 24 underground mines and 10 open cast mines are built, Mazikin said. About 80 percent of the country's coal exports come from Kuzbass, he said. (Bloomberg)