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. Last Updated: 07/27/2016

Business in Brief

Gazprom, MMK Accord

Gazprom signed a five-year accord with Magnitogorsk Iron & Steel, the steelmaker said in a statement Tuesday.

Chelyabinskregiongaz, Gazprom's unit in the Chelyabinsk region where the steelmaker is based, will sell Magnitogorsk more than 3 billion cubic meters of gas per year, the steelmaker said. (Bloomberg)

Matra Makes Oil Find

LONDON -- Matra Petroleum, an oil and gas explorer focusing on Central and Eastern Europe, discovered oil at its first well in Russia, the company said in a statement distributed Tuesday.

Matra made the discovery at the Arkhangelovskoe-12 exploration well near Orenburg in southern Russia, the company said. Matra, which has a 100 percent stake in the discovery, said it struck oil flowing at a rate of 960 barrels of oil equivalent per day. (Bloomberg)

Grid Firm to Sell Bonds

LONDON -- The Federal Grid Company, a unit of Unified Energy System that holds the country's transmission assets, plans to sell bonds to international investors.

The company hired Barclays Capital to manage the sale and will meet with investors in "coming days," Barclays said in a statement Tuesday. VTB Group will help sell the bonds, the statement said. (Bloomberg)

Norilsk May Raise $3Bln

Norilsk Nickel may raise as much as $3 billion from a sale of existing shares to reduce its $7 billion debt, Kommersant reported Tuesday, citing a board member it whom it did not identify.

Norilsk may sell as much as 4.9 percent of its shares by Nov. 14, increasing the company's free float to 45 percent, the newspaper said. (Bloomberg)

Kvarts Get OGK-2 Order

OGK-2, a power generator part-owned by Gazprom, awarded a 56.7 billion ruble ($2.3 billion) contract for two coal-fired units to Kvarts-Tyumen, Unified Energy System said Tuesday.

The engineer will build two 660-megawatt units at the Troitskaya GRES power plant in the Chelyabinsk region, UES said. (Bloomberg)

Gazprom to Go Nuclear

Gazprom will set up the country's biggest nuclear-equipment holding company centered around reactor-construction business Atomstroiexport, Kommersant said Tuesday, citing unidentified industry officials.

Gazprom will share a controlling stake in the holding company with the Federal Atomic Energy Agency, the paper said. The Development Bank may buy 10 percent to 15 percent, it said. (Bloomberg)

TMK Makes New Gas Pipe

TMK, the world's second-largest maker of pipes for the oil and gas industry, began producing a corrosion-resistant variety for use by companies including Gazprom, the company said in a statement Tuesday.

TMK has developed the pipe for gas extracted from wells in "aggressive environments" such as the Astrakhan gas condensate field, the company said. (Bloomberg)

Silvinit to Develop Mine

Silvinit, the country's largest potash maker, agreed with arms trader Rosoboronexport to develop a potassium mine and processing plant that may cost as much as $1.5 billion, the potash maker's spokesman, Anton Subbotin, said Tuesday.

Silvinit and Rosoboronexport's Oboronimpex unit registered the joint venture in October, Subbotin said. Silvinit holds 45 percent of the venture, he said. (Bloomberg)

Elektrotsink Ups Output

YEKATERINBURG -- Elektrotsink, the country's second-largest zinc firm, produced 65,925 tons of the anti-corrosive metal in the first nine months of 2007, up 1.1 percent year on year, the company's owner said Tuesday.

Urals Mining and Metals said in a statement that lead output at the plant rose 2.4 percent from year-ago volumes to 27,994 tons. Output of minor metal cadmium rose 13.3 percent to 189 tons. (Reuters)

Sitronics Supply Deal

Sitronics, a maker of microelectronics that raised $402 million in a February share sale, said Tuesday that it signed a preliminary agreement with Nokia Siemens Networks to establish a "strategic partnership."

Sitronics unit Mikron will become an official supplier of electronic components for Nokia Siemens products, the Moscow-based company said in a statement. (Bloomberg)

Deripaska Eyes Serbia Mine

VIENNA -- Billionaire Oleg Deripaska is likely to win the bidding for RTB Bor, Serbia's largest copper mining and smelting complex, Vienna's Wirtschaftsblatt newspaper reported Tuesday, citing unidentified people in Serbia.

Austria's A-Tec, which made the second offer for at least $340 million, does not have enough support within the tender commission, the report said. (Bloomberg)

Industries Index Falls to 58

An index of Russian service industries including telecommunications, banking, restaurants and hotels fell in October to the lowest level in three months, VTB Bank Europe said in a statement Tuesday.

VTB Bank Europe's Services Purchasing Managers' Index dropped to 57.5 in September from 59 in the previous month, the bank said. A figure above 50 indicates growth, below 50 a contraction. (Bloomberg)

Anadolu to Build New Plant

ISTANBUL -- Anadolu Cam Sanayii, a unit of Turkey's biggest glassmaker, said in a statement Tuesday that it planned to build a new factory in Russia, increasing its production capacity in the country to 1.5 million tons per year.

The new plant in Novosibirsk will have a capacity of 240,000 tons a year, Anadolu Cam said in the statement. The factory will push the company's investment in Russia to $600 million, Anadolu Cam said. (Bloomberg)

3 Alfa Bankers Poached

FRANKFURT -- Commerzbank, Germany's second-biggest lender, said Tuesday that it hired three bankers from Alfa Bank to help establish a Moscow-based domestic-loans desk.

Alexander Kozbenko will be in charge of debt-capital markets in Moscow, Commerzbank said. He will be joined by Anna Gubina and Denis Shanurnekov. (Bloomberg)

TuranAlem Deposits Up

ALMATY -- TuranAlem, Kazakhstan's second-largest bank, said Tuesday that modest growth in client deposits in October showed that the domestic funding situation was improving.

Client deposits grew by $17 million, or by 0.15 percent, in October after registering a 7.8 percent drop in September amid a credit crunch triggered by the U.S. subprime mortgage crisis. (Reuters)