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. Last Updated: 07/27/2016

Business in Brief

Rosneft to Boost Output

ROME -- Rosneft plans to boost its oil output to 160 million tons in 2015 with growth powered by assets acquired from bankrupt company Yukos, its president Sergei Bogdanchikov said Monday.

"By 2015 we plan oil production at 160 million tons per year, this figure is being discussed in the framework of the company's strategy to 2020. But 2015 is an important year for review," Bogdanchikov said. (Reuters)

State Seeks Control of Alrosa

The government will raise its stake in diamond miner Alrosa, the firm said in a statement Monday, as the state consolidates ownership of the company prior to a possible initial public share offering.

Alrosa, which controls one quarter of the world's diamond production, said it would issue 72,726 new shares, with the government raising its stake to 43 percent from 37 percent. (Reuters)

Oil Exports Down by 17%

Russian gas-oil and fuel-oil exports fell in October, official data showed Monday, as domestic sales offered higher netbacks amid record export duties and deficit on the local market.

Industry and Energy Ministry data showed that Russian gas-oil exports fell by 17.4 percent from September to 81,900 tons per day, while shipments of fuel oil were down by 11.9 percent to 105,050 tons per day.

Gasoline exports rose by 5.2 percent on a daily basis to 10,240 tons per day, the data showed. (Reuters)

Gas Price Seen at $300

Gazprom raised its forecast for Europe's natural-gas price next year to $300 for 1,000 cubic meters, deputy chief executive officer Alexander Medvedev said, RIA-Novosti reported Monday.

The company had earlier forecast a price of $275, Vedomosti reported last month, citing unidentified company officials. Gazprom said in October that it expected to charge European customers an average price of $263 to $265 for 1,000 cubic meters in 2007. (Bloomberg)

Khristenko Gives Assurances

ROME -- The Industry and Energy Minister said Monday that the country would remain a reliable energy supplier to Europe.

"We were and we are and we will remain a reliable supplier of energy to European markets," Viktor Khristenko told an energy conference in Rome. "We have never breached a single contract." (Reuters)

Tatneft Raises $2Bln

LONDON -- Tatneft, the oil producer controlled by the Tatarstan republic, raised $2 billion in loans for an oil refinery and petrochemicals plant in Nizhnekamsk, Interfax reported Monday.

The debt will be borrowed by Taneco, the Tatneft unit that will manage and build the refinery, Interfax said, citing an interview with Taneco general director Khamza Bagmanov. (Bloomberg)

Zero Duty on Tea Extended

The government will extend indefinitely a zero tariff on unpacked tea imports, initially set in February for nine months, the Economic Development and Trade Ministry said Monday.

A ministry spokeswoman said a draft of the resolution had been sent to the government for signing.

In February, Russia scrapped a 5 percent import tariff on unpacked black and green tea for nine months to stimulate domestic packaging and exports. (Reuters)

KamAZ Buys McCormick

KamAZ, the country's biggest truck maker, bought British tractor producer McCormick for an unspecified sum.

KamAZ acquired the British manufacturer, said the government of the Tatarstan republic, where the truck plant is based, in a statement on its web site Monday. The government did not provide any details. (Bloomberg)

AEM, Gazprom Accord Near

ROME -- Italian utility company AEM is "close" to agreeing with Gazprom on a joint venture for the sale of the fuel in Italy, AEM chairman Giuliano Zuccoli said Monday.

"Talks are very advanced," Zuccoli said. An agreement may be reached by the end of the year, he said. Zuccoli declined to say what stakes the partners would hold in the venture. (Bloomberg)

UMMC Output Up 10%

YEKATERINBURG -- The country's No. 2 copper producer Urals Mining and Metals Company said Monday that it produced 285,899 tons of copper cathodes from January to September, up 10 percent from year-ago volumes.

"The company is exceeding the 2006 volumes because of steady supply of raw materials, which have increased 5.2 percent from the same period a year ago," a UMMC statement said. (Reuters)

Hochtief Stake Not For Sale

VIENNA -- Basic Element, owned by billionaire Oleg Deripaska, has no plans to raise its 10 percent stake in German builder Hochtief, CEO Gulzhan Moldazhanova said, Austrian newspaper Der Standard reported Monday.

"We have no plans to take over the company or to raise our stake in it," Moldazhanova told the newspaper. "Our 10 percent [stake] is enough to be heard."

Deripaska bought a 10 percent stake in Hochtief in May. (Reuters)

Carlsberg to Pursue S&N

LONDON -- Carlsberg, the Danish brewer, will continue its takeover offer for joint-venture partner Scottish & Newcastle, the Financial Times reported Monday, citing an interview with Carlsberg chief executive Jorgen Buhl Rasmussen.

A 720 pence per share offer by the Copenhagen-based brewer was rejected by Scottish & Newcastle last month, the newspaper said. It cited Rasmussen as saying that Carlsberg was prepared to be patient in its pursuit of S&N.

Carlsberg and S&N operate Baltic Beverages Holding as a joint venture in Russia. (Bloomberg)

Petrochemicals Budget Set

Russia will need to invest $3 trillion in its petrochemical industry in the next decade to reach European standards of productivity, the Russian Chemists Union said Monday, Interfax reported.

The nation's petrochemical refineries will have to introduce new technologies to increase the rate of oil processing rather than relying on bigger crude volumes, said Viktor Ivanov, head of the Russian Chemists Union. (Bloomberg)

Georgian Prices Rise 19%

TBILISI, Georgia -- The cost of goods leaving Georgian factories and mines rose an annual 19 percent in October, led by metal products, the Tbilisi-based Statistics Department said Monday.

The producer-price inflation rate increased from 12.9 percent in September, the Statistics Department said. In the month, prices rose 4.4 percent compared with 1.5 percent in September. (Bloomberg)