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. Last Updated: 07/27/2016

Business in Brief

Aeroflot Will Buy Airbuses



Aeroflot will buy five second-hand Airbus A330s this year and next year to cover its needs as it is still negotiating a bigger deal to buy new planes, an executive said Wednesday.

Aeroflot deputy general director Lev Koshlyakov said the firm would buy two second-hand A330s this year, three planes next year and a total of 15 in the next few years. (Reuters)




Poultry Prices Slip



Meat company Cherkizovo said Wednesday that its poultry sales prices slipped 1 percent to $2.15 per kilogram in 2006 due to an outbreak of avian flu.

Last year Russia found bird flu in 11 regions in the south and in Siberia. The prices rose by over 7 percent in the second half of 2006 compared with the first half, bringing levels almost back to those of 2005, the firm said. (Reuters)




Transneft Bonds Sale



State-owned pipeline operator Transneft intends to sell at least $1 billion of seven-year bonds, its first sale of international debt, a banker involved in the deal said.

Transneft's investment-grade securities will be priced to yield about 55 basis points more than the dollar mid-swap rate, a benchmark for borrowing, said the banker, who declined to be identified. The bonds were marketed at a yield premium of 60 basis points, the banker said. (Bloomberg)




Japan, Russia Uranium Deal



TOKYO -- The Japanese government and power companies will ask Russia to process uranium as fuel for nuclear reactors, the Yomiuri newspaper reported Wednesday, citing an unidentified person familiar with the situation.

Japan earlier asked the Britain and France to enrich uranium, extracted from spent nuclear fuel, for reuse at nationwide reactors. The process has been slow because of high costs, and Japan has been seeking another country to ship its uranium. (Bloomberg)




Efes Soft Drink Sale



ANKARA -- Efes Breweries International, a Turkish company that brews beer in Russia and other East European countries, sold two soft-drink brands owned by its Moldovan unit to Coca-Cola.

Efes Breweries signed an agreement with Coca-Cola to sell the "Viva" and "Real" brands of Efes Vitanta Moldova Brewery, according to a filing by Anadolu Efes Biracilik & Malt Sanayi, Efes Breweries' owner, to the Istanbul Stock Exchange on Wednesday. (Bloomberg)




Raiffeisen to Boost Loans



Raiffeisen International Bank, the biggest non-Russian lender in the former Soviet Union, plans to more than double its share of Russia's consumer loans to 5 percent after buying local lenders in the region.

Raiffeisen aims to raise its share of the market in the next few years from about 2 percent in 2006, Tatyana Savina, head of the bank's services to individuals in St. Petersburg, said Tuesday on the sidelines of a conference in the city. (Bloomberg)




Tarantula Sold for $1.5M



LONDON -- International Marketing & Sales Group, which provides marketing services in emerging markets, bought Tarantula Russia for about $1.5 million to add clients including Procter & Gamble and SABMiller.

The acquisition allows International Marketing "to avoid potential conflicts and increase market share" in Russia, Gregory Thain, chairman of International Marketing, said Wednesday. (Bloomberg)




MDM Bank Securitization



MDM Bank plans to securitize car loans worth $450 million and future payments rights worth $300 million in 2007, a senior bank official said Wednesday.

"Car loans [securitization] will be closer to the end of the year. We want to accumulate assets, and fine-tune the deal," said Timur Kibatullin, MDM's head of international capital markets department. (Reuters)




New Ford Offer



ST. PETERSBURG -- The management of Ford's plant near St. Petersburg made a new offer to workers late Tuesday, after their one-day strike over pay and conditions last week, a Ford spokeswoman said.

"Management has kept the previous offer and made an additional offer, including points that take into account the trade union's demands," Yekaterina Kulinenko said.

Union leader Alexei Etmanov declined to comment, saying that time was needed to examine the offer. (Reuters)




Vozrozhdeniye to Sell Shares



Bank Vozrozhdeniye, a Russian lender, plans to sell new shares equivalent to 14 percent of outstanding stock by early May to help fund expansion, Interfax reported Wednesday, citing deputy chairman Nikolai Orlov.

Vozrozhdeniye has registered 3 million new shares for sale, Interfax said. Orlov expects the shares will be sold for about the current market price, the agency said. The stock currently trades at about $62, suggesting the bank would raise $184 million. (Bloomberg)




MGTS Subscribers Choose



The city's fixed-line operator, Moscow City Telephone Network, or MGTS, said Wednesday that 47 percent of its subscribers had opted for its unlimited tariff -- one of the three options introduced Feb. 1.

MGTS subscribers have until Feb. 28 to choose an option, but only 20 percent of them had picked a tariff by Tuesday, the firm said. The new law says that operators have to offer customers one of three tariffs -- unlimited, per-minute, or a combination of the two. (MT)




MTS's Kazakh Subscribers



ALMATY, Kazakhstan -- Mobile Telecom Service, or MTS GSM, launched a week ago and owned by Kazakhstan's largest fixed-line operator Kazakhtelecom, is targeting a subscriber base of 700,000 by the end of 2007, the firm said Wednesday.

MTS GSM, which started operating on Feb. 14, has sold 5,000 starter packages so far, chairman Askar Dostiyarov said. (Reuters)




UMMC Output Up



Russia's main lead producer, Urals Mining and Metals, will increase output of the metal to 49,000 tons this year, up 75 percent from 2006 volumes, the company said late Tuesday.

General director Andrei Kozitsyn said UMMC's Elektrotsink plant, located in the town of Vladikavkaz in the North Caucasus, will increase output after upgrades to 40,000 tons this year from 28,000 produced in 2006. (Reuters)




Alma Media Service Growth



HELSINKI -- Finnish media group Alma Media will expand its online classified advertising services in Russia, Denmark and the Czech Republic, it said Wednesday.

Alma Media has opened a City 24 subsidiary in Russia, which will start publishing online housing advertisements in May, the firm said. (Reuters)