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. Last Updated: 07/27/2016

Business in Brief

Power Machines Deal



Power Machines, an engineering company part-owned by Siemens, won a 100 million euro ($134 million) contract for two gas turbines, beating France's Alstom.

The engineer will supply two 270-megawatt Siemens turbines for the Kirishskaya power plant in northwest Russia, which is operated by the OGK-6 power generator, Power Machines said Wednesday. The new turbines, as well as maintenance work at the plant, will increase the capacity at one of its energy units to 800 megawatts from 300 megawatts. (Bloomberg)




RTS May Go Public



The Russian Trading System, the country's second-largest stock market by trading volume, may sell shares to the public in two years, following the example of western bourses, Vedomosti reported Wednesday.

RTS will prepare a prospectus for the sale within a few months, the newspaper cited RTS president Oleg Safonov as saying. RTS aims to go public to increase business, following such global examples as the London Stock Exchange, Safonov told Vedomosti. (Bloomberg)




Arms Exporter Exec Leaves



Denis Manturov, head of Rosoboronexport unit Oboronprom, may be appointed deputy industry and energy minister, Kommersant reported Thursday.

The appointment shows the influence of Sergei Chemezov, the CEO of Rosoboronexport, the newspaper cited Ruslan Pukhov, editor of Moscow Defense Brief, as saying. Manturov would be responsible for reorganizing the defense industry, Pukhov told Kommersant. (Bloomberg)




Service Industries Growth



Russia's service industries grew at the slowest pace in more than two years in March as expansion in employment and new orders slowed, VTB Bank Europe's Services Purchasing Managers' Index showed Wednesday.

The index fell to 56.9 last month, a 25-month low, down from 57.8 in February, the London-based bank said. The bank surveyed 300 purchasing executives among Russian services companies. A figure above 50 indicates growth, whereas a figure below 50 means a contraction. (Bloomberg)




AvtoVAZ Plans Shares Buy



AvtoVAZ plans to buy back 8 percent of its shares in June and July, Interfax said Wednesday, citing the company.

AvtoVAZ will pay 2,716 rubles ($104) for common shares and 1,253 rubles for preferred stock, Interfax said. Rosoboronexport and brokerage Troika Dialog will own 75 percent of AvtoVAZ when they complete a revamp of the carmaker's shareholding structure to end cross-ownership with subsidiaries. (Bloomberg)




Hydro OGK Hires Merrill



Hydropower generation firm Hydro OGK said Wednesday that it had hired Merrill Lynch and two Russian banks, IFK Metropol and KIT Finance, to advise it on consolidation.

Hydro OGK is being spun off from Unified Energy Systems together with other generation, transportation and distribution assets, as the state wants to privatize partly and liberalize the sector to make it more competitive. (Reuters)




Kazakhs Eye Balkan Pipe



BAKU, Azerbaijan -- Kazakhstan wants to buy a stake in a Balkan oil pipeline from the governments of Greece or Bulgaria to help crude from the Caspian Sea bypass the congested Turkish Bosporus strait, the Kazakh energy minister said Wednesday.

"We are interested in this project. There is a preliminary agreement that we will join this project within a 49 percent share belonging jointly to Greece and Bulgaria," Baktykozha Izmukhambetov told reporters. (Reuters)




Cisco to Invest in Russia



Cisco Systems, the world's biggest maker of computer-networking equipment, plans to invest in Russia's technology industry, starting with e-commerce site Ozon.ru.

Cisco, which has spent more than $1 billion in venture capital in the past decade, intends to fund Russian startups and local venture capital teams. (Bloomberg)




Rosselkhozbank Gets Loan



State-owned Rosselkhozbank has taken out a $520 million syndicated loan, Interfax said Tuesday, citing an unidentified banker.

The loan will be made in two parts, including an 18-month tranche of $270 million at 0.3 percent above the London interbank offered rate, and a three-year tranche at 0.4 percent, the news agency said. (Bloomberg)




Bank Trust Buyout Plans



LONDON -- The owners of National Bank Trust and Trust Investment Bank, two Russian lenders, plan to raise as much as ?150 million ($300 million) in an initial public offering of a Russian private equity fund.

Shares of the fund are scheduled to begin trading on London's Alternative Investment Market next month, Artashes Terzyan, a managing partner at National Bank Trust and Trust Investment Bank, said. Dawnay Day Group and KBC Peel Hunt are managing the IPO, he said. (Bloomberg)




NASTA Purchase Finished



ZURICH -- Zurich Financial Services, Switzerland's largest insurer, completed the acquisition of a majority stake in Moscow-based insurer NASTA to become the largest, foreign general insurer in Russia.

Zurich Financial holds a 66 percent stake in NASTA after receiving regulatory approval, the Zurich-based insurer said Wednesday. (Bloomberg)




Tatneft Gets Libya Rights



Libya, which has the biggest oil reserves in Africa, granted Tatneft the right to explore new fields in the North African nation, the Russian company said Wednesday.

Tatneft and National Oil Corp. of Libya signed three exploration and production sharing agreements in Tripoli on March 29, Tatneft said. (Bloomberg)




Highveld Sale Approved



JOHANNESBURG, South Africa -- South Africa's Competition Commission has approved the purchase of steelmaker Highveld by Evraz Group, Highveld said Wednesday.

The companies announced last July the agreed purchase by Evraz of 79 percent of Highveld for $678 million from the Anglo American group. In February, The European Commission gave the green light to the deal, which values Highveld at $858 million. (Reuters)




Azeris Halve Gas Output



BAKU, Azerbaijan -- Azerbaijan has halved its gas production forecast for this year from the giant Shakh Deniz field following operational problems at the first production well, the head of Azeri state oil firm Socar said Wednesday.

Rovnag Abdullayev said the field was now expected to produce 3 billion cubic meters this year, down from the earlier forecast of 5.6-5.8 bcm. (Reuters)