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. Last Updated: 07/27/2016

Business in Brief

VTB Offer to Buy Out Unit

The retail arm of VTB on Thursday offered to buy out minority shareholders in its subsidiary VTB North-West after VTB decided against a full-scale merger with the regional bank.

VTB-24 said in a statement that it was offering 41.72 rubles ($1.70) in cash or 361 VTB shares per share in VTB North-West, a bank based in St. Petersburg, which was previously called Promstroibank. The offer runs until Dec. 14. (Reuters)

Urals Energy's $270M Loan

Urals Energy, a London-listed oil producer in Russia, said Thursday that it borrowed $270 million from Sberbank to fund the development of a deposit in eastern Siberia.

The loan will enable Urals Energy to "fully develop" the Dulisminskoye field to reach production of 30,000 barrels of oil per day by 2011, the company said. (Bloomberg)

Hyundai Mulls Plant Project

ST. PETERSBURG -- Hyundai is planning to start building a $400 million car manufacturing plant in northwest Russia in 2008, the local government said Thursday.

The plant will have the capacity to produce 100,000 to 200,000 units per year, the Leningrad region said, citing Hyundai's general manager Chan Joo Cho. Hyundai, the world's No. 6 automaker along with its affiliate Kia, already assembles 70,000 to 80,000 cars annually in the country at the Taganrog plant. (Reuters)

Oil Terminal Back Online

The Caspian Pipeline Consortium oil terminal at the Novorossiisk port resumed lifting late on Nov. 13, the Chevron-led group said Thursday.

Operations were suspended Nov. 10 during a storm on the Black Sea, said a spokeswoman, who asked not to be identified. The consortium operates the country's only foreign-owned oil export link, which ships crude from Kazakhstan to the Black Sea. (Bloomberg)

Synergy's IPO $70 per Share

Synergy, a Russian vodka maker, priced its initial public offering at $70 per share, Interfax reported Thursday, citing two unidentified people familiar with the sale.

Synergy said this month that it planned to sell up to 2.72 million shares for $61 to $72 apiece. (Bloomberg)

Container Firms Sell Stakes

Severstaltrans, a transport company spun off from steelmaker Severstal, said Thursday that it agreed to buy a 50 percent stake in container operator Multi-Link Terminals and Container Depot from Finland's Container Finance Group.

Severstaltrans did not disclose the price. The two companies serve ports in both Finland and the Leningrad region. (Bloomberg)

Reserves Hit New Record

Foreign currency and gold reserves rose to a record $455.2 billion in the week ended Nov. 9, the Central Bank said Thursday.

The reserves rose $7.3 billion from $447.9 billion the previous week, the Central Bank said. Reserves have risen from $12 billion in 1998. (Bloomberg)

Industrial Output Rises

Industrial production rose an annual 6.1 percent in October, the Economic Development and Trade Ministry's official Andrei Klepach said Thursday.

Output accelerated from September, he said. Industrial output rose an annual 6.5 percent from January to October, Klepach said, without giving further details. (Bloomberg)

Yamal Reserves Fuel Interest

Russia is "interested" in Shell's proposal to develop gas and oil reserves on the country's far northern Yamal Peninsula, Deputy Industry and Energy Minister Anatoly Yanovsky said Thursday.

The projects may involve several companies, including Gazprom. Shell would "theoretically" be able to book reserves from the project, which would involve oil, pipeline gas and producing liquefied natural gas. (Bloomberg)

Rosneft Not Eyeing Rivals

Rosneft has no plans to buy smaller domestic rivals Surgutneftegaz, TNK-BP or Russneft, CEO Sergei Bogdanchikov said Monday in response to press reports indicating that the company may acquire Surgutneftegaz and that TNK-BP might sell their stakes to a state company when their agreement with BP ends.

He dismissed it as "pure market speculation" and said Rosneft would not consider buying companies "that are not for sale." (Bloomberg)

KIT Picks IPO Banks

KIT Finance has picked Morgan Stanley and Credit Suisse to organize its initial public offering next year, a source close to the bank said Thursday.

KIT Finance head Alexander Vinokurov said in September that the bank was holding talks with banks and investment companies to select organizers for an IPO that would take place no earlier than October 2008. He said the bank was seeking to raise around $1 billion. (Reuters)

Svyazinvest Sees Sales Rise

Svyazinvest, the country's national fixed-line phone company, will increase sales in 2008 by 6.3 percent, deputy CEO Denis Pozdnyakov said, Interfax reported Thursday.

Svyazinvest sales will rise to 252 billion rubles ($10.3 billion) in 2008, up from the 237 billion rubles expected this year, Pozdnyakov said, the agency reported. (Bloomberg)

Tele2 Targets Urals

Tele2, Sweden's second-largest telephone company, plans to target the population west of the Urals, said Lars-Johan Jarnheimer, chief executive of the company's holdings in Russia.

He said they would announce licenses for the remaining 50 regions, citing primary interest in 16 of the 50 regions. (Bloomberg)

Iberdrola Seeks Turbine Bid

Spanish energy technology firm Iberdrola is in the running against two Russian firms to build a 12 billion ruble ($489.4 million) turbine for power producer TGK-8, TGK-8 said Thursday.

"We will reach a conclusion on Nov. 23 and a contract will be signed in December 2007," the company said. IntertekhElektro and E4 Group are the other bidders for the turnkey construction project for a combined cycle gas turbine with capacity of 410 megawatts. (Reuters)

SABMiller Eyes Beer Market

LONDON -- Brewer SABMiller said Thursday that the Russian beer market was "one of the most exciting in the world," but declined to comment on whether it was interested in Scottish & Newcastle's Russian assets.

Earlier Thursday, Danish brewer Carlsberg and Dutch group Heineken raised their bid proposal for Scottish & Newcastle to 7.3 billion pounds ($15 billion), or 750 pence per share, from 720 pence per share previously. (Reuters)