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. Last Updated: 07/27/2016

Business in Brief

Overflight Rights Extended

The Transportation Ministry on Wednesday extended overflight rights for Lufthansa's cargo planes until the end of February and said it received assurances of the firm's readiness to move its regional hub to a Russian airport.

Lufthansa said earlier Wednesday that Germany's transport minister had informed it that Russia had extended the overflight rights, but said the extension was not linked to a possible move of its cargo hub from Kazakhastan to Russia. (Reuters)

GDF Eyes Power Producers

Gaz de France is in talks with the government to buy electricity producers, including TGK-10, as the country begins to dismantle national utility Unified Energy System, Kommersant reported Wednesday.

GDF held talks Tuesday with Industry and Energy Minister Viktor Khristenko and UES chief executive Anatoly Chubais and may reach a deal on buying a power producer within six months, Khristenko said, the newspaper reported. (Bloomberg)

New Date Set for BoNY Trial

The Moscow Arbitration Court on Wednesday delayed the Federal Customs Service's $22.5 billion lawsuit against the Bank of New York Mellon by two months.

Judge Lyudmila Pulova also granted a motion by the customs service's lawyer Maxim Smal obliging the bank to provide more information about the accounts used in an alleged scheme to launder up to $7.5 billion of Russian money in the 1990s, Smal said.

The postponement of the trial was due to Judge Lyudmila Pulova's busy schedule and upcoming Christmas and New Year holidays, Smal said. (MT)

E.On to Buyout OGK-4

Germany's largest utility, E.On, will offer to buy out the minority shareholders of power producer OGK-4 at 3.35 rubles (13.6 cents) per share on Thursday, E.On's Russia unit said Wednesday.

The firm's financial director Mario Mazidowski said the buyout offer would be available for 80 days, until Feb. 5. (Reuters)

BP Makes Major Azeri Find

BP said Wednesday that it discovered a "major" deposit of gas condensate in Azerbaijan.

The discovery may allow BP to double the output from the Shah Deniz field, the company said of its 25.5 percent of the production-sharing agreement. (Bloomberg)

UES Predicts Genco Prices

ROME -- Unified Energy System expects an average price of 400 euros ($586.4) per kilowatt of installed capacity in the planned sale of its generation firms, part of a sweeping power sector reform, UES chief executive Anatoly Chubais said.

The price for the remaining dozen generating companies would be set on a case-by-case basis, largely within a range of $350 to $750 per kilowatt seen in the previous sales, Chubais said late Tuesday. (Reuters)

Gazprom Revenues Rise

Gazprom said Wednesday that its revenues rose to 372.8 billion rubles ($15.20 billion) in the third quarter of 2007 from 357.9 billion rubles in the same period a year ago.

The firm said its revenues, calculated to Russian accounting standards, rose to 1.24 trillion rubles ($50.57 billion) in the first nine months of the year from 1.19 trillion rubles in the same period of 2006. (Reuters)

Gazprom Ups Export Target

Gazprom raised forecasts for European exports for 2007, the company's deputy head of exports Sergei Chelpanov said Wednesday.

Gazprom plans to sell 148 billion to 149 billion cubic meters of gas to Europe. Chelpanov said last month that exports would total 147 bcm. Last year Gazprom sold 151 bcm. (Bloomberg)

Gazprom, SUEK Talks

The board of Gazprom will consider the merger of the coal and power assets of the gas firm with energy group SUEK in December, analysts quoted a Gazprom executive as saying Wednesday.

A source close to the deal said Gazprom's board would discuss the issue in December. (Reuters)

Surgut Net Profits Falls

Surgutneftegaz, the country's fourth-largest oil producer, said Wednesday that its net profit fell to 56.7 billion rubles ($2.31 billion) in the first nine months of 2007 from 74.2 billion rubles in January to September of 2006.

The firm said its revenues, calculated under the Russian accounting standards, rose to 449.3 billion rubles in January to September from 389.8 billion rubles in the same period a year ago. (Reuters)

Ad Spending Surges

Advertising spending in Russia surged to a record 153 billion rubles ($6.3 billion) in the first nine months of this year as companies including Procter & Gamble and Unilever fought for market share, the Association of Communication Agencies said Wednesday.

Spending jumped 24 percent from 123 billion rubles a year earlier, the association said. Television ads accounted for half of the total. (Bloomberg)

Finmeccanica Wins Deal

Finmeccanica's Ansaldo Energia unit signed a contract valued at more than 45 million euros ($66 million) to provide two gas turbines for a division of Gazprom, Finmeccanica said Wednesday.

Ansaldo Energia will supply turbines, generators and other systems for a power plant southwest of St. Petersburg, Finmeccanica said. (Bloomberg)

80 Bank Licenses at Risk

The Central Bank will revoke 50 to 80 banking licenses in 2007, roughly the same amount as the previous year, the state bank's first deputy chairman Gennady Melikyan said Wednesday.

Since the beginning of the year, 42 of the licenses have been revoked on order of the central bank, effectively putting their holders out of business. (Reuters)

Nutritek Profit Doubles

Baby-food and dairy products company Nutritek said Wednesday that its net profit more than doubled in April to September to $16.15 million from $7.14 million in the same period of 2006.

Nutritek said revenues rose by 32.1 percent to $230.81 million. (Reuters)

GAIL Plans Overseas Plant

NEW DELHI -- Indian state-run gas firm GAIL said Wednesday that it was in talks with Qatar Petrochemical and LUKoil as it looks to build a large petrochemical plant overseas to gain better margins.

"We are looking at setting up a mega petrochemical project overseas of 1.3 million to 1.9 million tons a year," said the firm's chairman and managing director, U.D. Choubey.

"It is in line with our strategy to set up a petrochemical project overseas where feedstock is available," he said. (Reuters)