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. Last Updated: 07/27/2016

Business in Brief

Putin Sees No Stock Support

President Vladimir Putin said Thursday that the country's $113.7 billion stabilization fund would not be invested in Russian stocks, Interfax reported.

Putin told journalists in Luxembourg that "no one was ever" planning to put money from the stabilization fund into Russia's equity markets, the new agency said. Money from the state's pension fund and other development funds could one day be invested "carefully in connection with blue chips," Putin was cited as saying. (Bloomberg)

X5 Managers' Payout

Supermarket chain X5 Retail Group paid managers $58.9 million, or more than half of the profit from 2006, Vedomosti reported Friday, citing the company's annual report.

X5 paid $48 million to four directors to compensate for ending a stock-option plan, the paper said. Four managers collected $7.1 million in bonuses, and the company paid $3.6 million in salaries to 12 supervisory-board members, the paper said. (Bloomberg)

New Dalsvyaz CEO

Dalsvyaz, a provider of telecommunications services in the Far East region, on Friday confirmed Anton Kolpakov as its new chief executive officer.

Kolpakov, Dalsvyaz's acting CEO, was approved by the board, the company said in a statement. (Bloomberg)

Foreign Borrowing Doubles

Russian banks borrowed more than $100 billion abroad last year, which accounted for more than 10 percent of gross domestic product, Interfax reported Friday.

Foreign debt of Russian banks doubled in 2006 from the previous year, the agency said, citing a speech by Finance Minister Alexei Kudrin to the State Duma. (Bloomberg)

Moscow Phones Upgrade

Nokia Siemens Networks, the phone-equipment venture formed by Nokia and Siemens last month, will help Moscow's main fixed-line phone provider upgrade its network to offer services such as broadband Internet, both companies said Friday in a statement.

Moscow City Telephone is replacing its analog infrastructure with technology provided by Nokia Siemens and other suppliers, the companies said. Nokia Siemens primarily supplies soft switches. (Bloomberg)

VTB Starts Trading Shares

VTB bank said Friday its shares would start trading on the RTS and MICEX exchanges from Monday following registration of its initial public share offering with the Central Bank.

The state-run bank's global depositary receipts began trading on the London Stock Exchange on May 17. (Reuters)

Domestic Oil Prices Drop

Domestic oil prices for June delivery fell by an average of 9 percent from the previous month on the free market amid rising crude oil exports, traders said Friday.

Traders had expected that the prices would drop more significantly, by 15 to 20 percent, as oil companies rushed to export more before oil export duty rises by 28 percent to $200.6 per ton from June 1. (Reuters)

VimpelCom Profit Up

Mobile phone company VimpelCom said Friday that its first quarter earnings were $277.3 million, well above market expectations.

The earnings, to generally accepted accounting principals, were up from $198 million in the preceding quarter. Revenues amounted to $1.488 billion, compared with $1.45 billion in the fourth quarter of last year. (Reuters)

Khristenko on Energy Prices

Industry and Energy Minister Viktor Khristenko said Friday that gas prices will be brought into line with market prices by 2011, while electricity prices will be completely liberalized, Itar-Tass reported.

Gas prices will correspond with those paid by foreign buyers, less deductions for tariffs, transport costs and customs duties, Khristenko said. Taking these factors into account, the adjustment prices would still be 40 percent lower than elsewhere, the agency reported Khristenko as saying. (MT)

GV Gold Postpones IPO

GV Gold, the country's seventh-largest gold producer, has postponed its initial share offering to fall from May due to poor market conditions, a banking source said Friday.

The IPO road show had been scheduled to begin on May 28.

The company withdrew its first attempt to list in February, saying the initial price did not reflect its future prospects. (Reuters)

New Mosenergo Chairman

Gazprom deputy CEO Kirill Seleznyov was appointed chairman of Mosenergo after the state-run natural-gas company gained control of the utility's board, Mosenergo said in a statement Friday.

Unified Energy Systems' Yury Udaltsov was elected deputy chairman, Mosenergo said. (Bloomberg)

Bombardier Rail Venture

Bombardier, the world's biggest train maker, will team up with manufacturer Transmashholding to build rail equipment in Russia, Bombardier said Friday in a statement.

The partners will together invest $16.9 million in two 50-50 joint ventures, one for engineering and the other for the production of propulsion equipment, Bombardier said. (Bloomberg)