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. Last Updated: 07/27/2016

Business in Brief

AvtoVAZ Seeks $500M Loan

VIENNA -- Carmaker AvtoVAZ has mandated Austria's Raiffeisen Zentralbank with arranging a $500 million syndicated loan later this year, with half of the amount by midyear, RZB said Thursday.

AvtoVAZ, known in Europe under its export brand Lada, and RZB signed the deal during President Vladimir Putin's visit to Vienna on Wednesday, RZB said. The Russian arm of RZB's Raiffeisen International will help arrange the loan. (Reuters)

Aeroflot Net Rises Sharply

Aeroflot said profit more than doubled in the first quarter on increased ticket sales and prices, the company said in a statement handed out before a news conference Thursday.

Net income jumped 115 percent to $69.3 million in the period, the company said. Revenue advanced 37 percent to $663 million, according to preliminary results calculated to international financial reporting standards. (Bloomberg)

Aeroflot Considers Low Bid

Aeroflot plans to offer the Italian government less than the market price for a 39.9 percent stake in Alitalia, the Russian carrier's deputy CEO for finance and planning, Mikhail Poluboyarinov, said Thursday.

"We want to invest in the company itself and not in the Italian government," Poluboyarinov said.

Aeroflot does not plan to seek an additional 10 percent of the unprofitable Italian airline, he said. (Bloomberg)

Malev Posts 2006 Loss

BUDAPEST -- Malev, the Hungarian airline controlled by Boris Abramovich, had a loss in 2006 on higher fuel costs and a weak Hungarian forint, Napi Gazdasag newspaper said Thursday, citing a company report.

The company's operating loss was 10.8 billion forint ($58.3 million), compared with a 9 billion forint loss in 2005. Malev had a pretax loss of 10.5 billion forint, the newspaper reported. (Bloomberg)

Malaysians Get 2 Sukhoi Jets

KUALA LUMPUR, Malaysia -- Malaysia's air force received two Russian-made fighter planes Thursday, hailing them as a boost to its ability to deter any military threats.

The planes are the first of 18 Sukhoi-20MKM jets Malaysia ordered in 2003 in a $900 million deal. Officials have said the purchase will make Malaysia one of Asia's largest operators of the high-tech jets after India and Vietnam. (AP)

Alstom Wins Train Tender

French industrial firm Alstom has won a tender to supply high-speed trains for the St. Petersburg-Helsinki route, Russian Railways CEO Vladimir Yakunin said Thursday, Interfax reported.

"Only Alstom submitted a bid at the final stage of the tender and negotiations were carried out with the company," Yakunin said at a conference in Sochi, the agency reported.

The firm is now raising financing to acquire the trains, Interfax said. (MT)

RusAl Plans Nuclear Reactor

United Company RusAl plans to join with Russia's reactor construction company to build a nuclear station in the Far East and supply electricity to a new smelter.

The venture would make RusAl the first private Russian company to own a stake in a nuclear plant, said Sergei Shmatko, CEO of Atomstroiexport, on Thursday. The company will prepare a feasibility study for the reactor with RusAl in a year. (Bloomberg)

Currency Reserves Increase

Russia's foreign currency and gold reserves reached a record $394.3 billion, the Central Bank said Thursday.

The reserves advanced $8 billion in the week ended May 18 from $386.3 billion in the previous seven days, when they gained a record $14.2 billion, the bank said in a statement. Russia has increased its foreign currency holdings from $12 billion in 1998. (Bloomberg)

OGK-3 Chairman Named

Andrei Bugrov, managing director of Interros Holding, was named chairman of OGK-3, a Siberian power generator controlled by Norilsk Nickel.

Yulia Basova, a deputy CEO at Norilsk, was elected deputy chairwoman of the utility, OGK-3 said Thursday in a statement.

Interros, owned by billionaires Vladimir Potanin and Mikhail Prokhorov, and Norilsk Nickel, controlled by Interros, together have seven of the 11 seats on OGK-3's board. (Bloomberg)

Sitronics Passes on Dividend

YEKATERINBURG -- Technology firm Sitronics will not pay a 2006 dividend as it plans to channel 95 percent of its profits into development, the company said Thursday following its board meeting.

The remaining five percent of 2006 net profits or 3.28 billion rubles ($126.5 million) would be put aside to create a reserve fund. (Reuters)