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. Last Updated: 07/27/2016

Business in Brief

Rosinter Profits Jump



The country's leading restaurant company Rosinter said Monday that its first-half net revenue grew by 28 percent to $122.5 million as it opened new restaurants.

Net profit under international accounting standards soared to $5.3 million from $800,000 in the same period last year.

The company owns popular pizza and sushi chains and operates the Russian license for T.G.I. Friday's. (Reuters)




Magnit Sales Rise 50%



Magnit, the country's second-largest supermarket chain, said Monday that sales advanced 50 percent in the first nine months on new store openings.

Revenue climbed to $2.55 billion from $1.7 billion in the same period last year, the company said in a statement. Magnit added 176 supermarkets in the period for a total of 2,069 on Oct. 1.

The retailer, which operates discount stores, is adding outlets in towns with fewer than 500,000 inhabitants to capitalize on rising incomes. (Bloomberg)




PPF Gains Stake in Insurer



PRAGUE -- A unit of PPF Investments, the international private-equity group of Czech billionaire Petr Kellner, said Monday that it bought a group of Russian companies that control a combined 38.5 percent in insurer Ingosstrakh.

PPF's purchase involves Russian companies Vega, Novy Kapital and Investitsionnaya Initsiativa, made through PPF's vehicle PPF Beta, it said in a press release.

PPF also said it was in talks with Assicurazioni Generali's Generali Worldwide Insurance Company on acquiring a 49 percent stake in PPF Beta. (Bloomberg)




Evraz Production Falls 8.4%



Evraz Group, a steelmaker part-owned by Roman Abramovich, said Monday that production dropped 8.4 percent in the third quarter.

Crude-steel output fell to 3.68 million tons, from 4.01 million tons a year earlier, Evraz said in a statement. Output of rolled products dropped 6.7 percent to 3.47 million tons. Evraz produced 1.22 million tons of construction products, 8.9 percent more than in the same period last year. (Bloomberg)




Fiat, AvtoVAZ Sign Deal



Italian carmaker Fiat and AvtoVAZ on Monday signed a partnership memorandum, the Russian carmaker said in a statement, Interfax reported.

The carmaker will set up working groups to establish potential areas of cooperation and the specific terms for short- and long-term collaboration, the agency reported. The companies will sign more concrete agreements the coming months, Interfax said. (MT)




Gazprom Starts Roadshow



LONDON -- Gazprom starts a three-day roadshow Monday for a benchmark euro-denominated bond, a source at one of the lead managers said.

The investor roadshow will begin in London on Monday, move to the Netherlands and Frankfurt or Munich on Tuesday and conclude in Zurich on Wednesday, the official said.

The banks said last week that after the roadshow, the deal would be subject to market conditions. (Reuters)




OGK-1 May Double Issue



Unified Energy System has proposed doubling the size of an additional share issue in its OGK-1 unit to help fund construction of a new power station, a source close to OGK-1 said Monday.

The committee for strategy and reform at UES would discuss Tuesday whether to issue 22.5 billion additional shares in OGK-1 rather than the 11 billion agreed earlier, the source said. (Reuters)




Foreigners' Assets at 14%



The share of Russian banking assets held by foreigners increased to 14 percent by July 1, Central Bank chairman Sergei Ignatyev said Monday, Interfax reported.

Foreign capital accounted for 11.2 percent of banking assets in July 1 of last year, the agency reported. Total banking assets increased by 49 percent in the past 12 months, Ignatyev said, the agency reported. (Bloomberg)




Borrowing Risks Lamented



Domestic banks have pushed up borrowing abroad, which "potentially increases the vulnerability" of some lenders, Central Bank chairman Sergei Ignatyev said Monday, Interfax reported.

Foreign liabilities accounted for 15.4 percent of total banking industry liabilities by the "middle of 2007," Ignatyev said, the agency reported.

This indicator is "much higher" for some banks, especially those that are subsidiaries of foreign lenders, he said, Interfax reported. (Bloomberg)




Railways Bank $88M Loan



TransCreditBank, the lending unit of Russian Railways, is borrowing $87.5 million to finance its leasing operations and foreign trade, the lender said Monday in a statement.

The two-year loan will pay interest of 0.45 percentage points more than the London interbank offered rate, TransCreditBank said. BNP Paribas, Commerzbank and Standard Bank are organizing the sale of the loan, which will be syndicated to a wider group of lenders, the statement said. (Bloomberg)




Fighter Venture Planned



Russia and India plan to spend as much as $10 billion developing a so-called fifth-generation warplane, Kommersant said Monday, citing unidentified people familiar with the matter.

Test flights should begin 2009, with commercial production starting the following year, the newspaper said, citing Air Force Commander Alexander Zelin. (Bloomberg)




TPG May Buy Stake in SIA



TPG, a U.S. buyout firm seeking stakes in Russian companies, is in talks to buy more than half of SIA International, Kommersant said Monday, citing an unidentified official from a company advising TPG.

TPG may pay about $800 million for the stake in the country's biggest drugs distributor, said Maria Denisova, general director of the RMBC pharmaceuticals agency, the paper said. (Bloomberg)




Lithuania Mulls LNG Port



VILNIUS, Lithuania -- Lithuania is looking into the possibility of building a liquefied natural gas import terminal, the government said Monday.

Lithuania has previously said it wanted to diversify its sources of supply and it has now set up a task force.

"Prime Minister Gediminas Kirkilas has ordered the task group to look into the possibility of building a liquid gas import terminal in Lithuania," the government's press office said. (Reuters)




Kazakh Surplus Narrows



ALMATY, Kazakhstan -- Kazakhstan's foreign trade surplus narrowed to $8.6 billion in January-August from $9.6 billion last year, the State Statistics Agency said Monday.

The agency said the state's exports rose 22.9 percent in the first eight months of the year, while imports grew 45.2 percent. (Reuters)