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. Last Updated: 07/27/2016

Business in Brief

Fyodorov Quits MiG Posts



Alexei Fyodorov has resigned from the posts of general director and general designer of military jet manufacturer MiG, RIA-Novosti reported Monday.

Prime Minister Viktor Zubkov has signed a relevant decree, the report said, citing the government press department.

Fyodorov also heads the United Aircraft Corporation, an umbrella holding of the country's main jet makers, including MiG. Putin ordered the creation of the corporation last year. (MT)




Sakhalin-3 Is Strategic



The government will auction off oil and gas blocks of the Sakhalin-3 project as strategic deposits, Natural Resources Minister Yury Trutnev said Monday, signaling that foreign access to the project would be limited.

"Sakhalin-3 should be part of strategic [fields]," he told a news conference.

ExxonMobil had long hoped to revive its involvement in Sakhalin-3, which Russia canceled a few years ago, saying the company's agreement to develop the large block had been never finalized. (Reuters)




Music Web Site Case



The Moscow City Court on Monday delayed until Oct. 10 an appeal hearing against the acquittal of the former director of AllofMP3.com, a web site accused of brazenly selling pirated music without paying royalties.

Prosecutors and the International Federation of the Phonographic Industry, a recording industry trade group, filed the appeal in August after a Moscow court found Denis Kvasov not guilty of violating intellectual property laws.

The panel of judges said Monday that they needed more time to study the case materials. (MT)




Oil Fund Reaches $141Bln



The value of the government's stabilization fund rose to $141.1 billion by the end of September as the country benefited from a global rise in crude oil prices.

The fund increased 3.2 percent to 3.5 trillion rubles, the Finance Ministry said on its web site Monday. It grew from 3.4 trillion rubles in the previous month, the ministry said. The fund, which accumulates some of the revenue from the country's crude oil sales, held $58.98 billion, 45.46 billion euros and 6.83 billion pounds as of Monday, the statement said. (Bloomberg)




Ankara Gas Gets Hotter



ANKARA, Turkey -- The upcoming sale of the Turkish capital's natural gas distribution grid, one of the country's largest privatizations, has attracted strong overseas interest, an official said Monday.

The official, from the Ankara gas company Baskent Dogalgaz, said Germany's RWE, Gaz de France and Gazprom were interested in the tender, set to be held in the next two weeks. Other potential bidders include Turkey's Sabanci Group, Zorlu, Aksa and Energaz. (Reuters)




Petrocommerce Bonds



Petrocommerce bank plans to issue two bonds worth a combined 8 billion rubles ($322 million), the bank said Monday.

The bank said its board of directors had approved issuing a five-year, 5 billion ruble bond and a three-year bond worth 3 billion rubles. It did not say when it would place the bonds.

Petrocommerce is part of IFD Capital, a banking group belonging to billionaire shareholders of LUKoil, Vagit Alekperov and Leonid Fedun. (Reuters)




Gazprombank Bonds



Gazprombank, the lending arm of Gazprom, plans to offer as much as 50 billion rubles ($2 billion) of bonds amid turmoil in world markets that has slowed borrowing at home.

Gazprombank's board approved the sale of 10 billion rubles of three-year bonds and two five-year bonds of 20 billion rubles each on Sept. 28, the Moscow-based bank said in separate regulatory filings Monday.

The bank has a year after registering the bonds to sell them, spokesman Sergei Perminov said in an e-mailed response to questions Monday.

Standard & Poor's rates Gazprombank BBB-, the lowest investment grade. (Bloomberg)




RBC Seeks $200M Debt



Media group RBC plans to tap domestic and international debt markets before the end of the year as it seeks about $200 million to fund acquisitions, co-owner German Kaplun said Monday.

RBC, or RosBusinessConsulting, said earlier Monday that its board of directors had approved issuing eight ruble bonds worth a combined 12 billion rubles ($482.5 million).

Kaplun said RBC needed to borrow about $200 million this year to fund acquisitions of media assets but added that it was not going to place all of the ruble bonds. (Reuters)




Georgian FDI Up



Foreign direct investment in Georgia rose to $370 million in the second quarter of the year as spending on the energy industry increased, the country's state-run statistics office said Monday.

Investment to the Black Sea nation totaled $656 million in the first six months of the year, an increase of $203 million compared with the same period a year ago.

The Czech Republic was the largest foreign investor during the second quarter, after investment company Energo Pro spent $73 million in the Georgian energy system.

Kazakhstan and the Netherlands invested $63 million and $42 million in the second quarter, respectively, the statistics office said.

Total foreign direct investment since 2006 reached $1.2 billion at the end of the second quarter, the authority said. (Bloomberg)




2nd in Arms Race



NEW YORK -- The United States led Russia and Britain again as the top supplier of weapons to developing countries in 2006, and Pakistan was the biggest recipient, as global arms sales slipped, The New York Times reported.

The United States reached agreements to sell $10.3 billion of weapons to developing nations, accounting for 36 percent of such deals, the newspaper reported, citing a report from the Congressional Research Service set to be released Monday. Russia ranked second, with $8.1 billion, or 28 percent of sales, followed by Britain with $3.1 billion, or 11 percent. (Bloomberg)




Bulgaria Nuclear Deadline



Bulgaria extended by two weeks a deadline to submit bids for a stake in a venture to build and run a 7 billion euro ($9.5 billion) nuclear plant in Bulgaria.

E.On, Germany's largest utility, and Enel of Italy are competing alongside three other rivals for as much as 49 percent of Belene Power, which will oversee construction and management of the plant on the Danube River. Atomstroiexport will build the facility.

"We have extended the deadline until Oct. 15," Hristina Stoyanova, a spokeswoman for Sofia-based National Electricity, said by telephone Monday. "The investors requested more time to deal with the documentation of the project." (Bloomberg)