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. Last Updated: 07/27/2016

Business in Brief

UES Wants State Control

Unified Energy Systems wants a government ministry to take over part of its functions after the company is broken up in June next year, the company's CEO Anatoly Chubais told President Vladimir Putin on Monday.

The ministry would ensure that investors buying generation companies carry out five-year plans for the country's electricity industry as set by the utility, Chubais said. (Bloomberg)

Putin Urges Equity Support

President Vladimir Putin urged the government on Monday to bolster the country's flagging equity market by pumping surplus oil revenue into stocks.

The government should consider buying Russian blue chips with excess oil revenue instead of foreign securities, Putin said at a Cabinet meeting Monday. (Bloomberg)

Kovykta License Probe

TNK-BP may lose its rights to develop the giant east Siberian Kovykta gas field before June, the Federal Service for the Inspection of Natural Resources Use said Monday, two days before its starts a final inspection.

"The inspection will take a couple of days and we will check only one thing -- whether they comply with production obligations. The results of the inspection seem obvious to me," said Oleg Mitvol, the agency's deputy head. (Reuters)

GDP Up 7.1% in April

Gross domestic product grew by 7.1 percent in April year on year, compared with 7.4 percent in March, Economic Development and Trade Minister German Gref said Monday.

Gref also said GDP had risen 7.7 percent in the first four months of 2007. He said industrial output had risen in April by 4.6 percent year on year, in line with a number released earlier by State Statistics Service. (Reuters)

RusAl Works on Komi Plant

United Company RusAl, the world's biggest aluminum producer, will begin construction of a $1.5 billion alumina refinery in northwest Russia in June to produce raw materials closer to its metals plants, the company said Monday in a statement.

The refinery, processing bauxite from the Middle-Timan mine in the Komi republic with reserves of 260 million tons, will boost Russia's output of alumina by 40 percent, RusAl said. (Bloomberg)

Mechel to Up Coal Output

Steelmaker and coal miner Mechel plans to raise coal output to 25 million tons by 2010 from more than 17 million tons last year, a senior company executive said Monday.

Executive director Alexei Ivanushkin said the increase would be achieved by expanding the company's current mines and building a new mine, Yerunakovskaya, in the Kuzbass coal-mining region. (Reuters)

Latvia Pipe to Be Stopped

MINSK -- Pipeline firm Transnefteproduct plans to halt a diesel pipeline to Latvia's port of Ventspils on May 29 for scheduled repairs expected to last about 72 hours, the firm's chief engineer confirmed on Monday.

The pipeline pumps around 10 million tons of diesel from refineries in central Russia to Ventspils for exports to markets in northwest Europe. (Reuters)

E.On Asked for More Cash

FRANKFURT, Germany -- Gazprom is demanding that E.On pay a higher price than previously negotiated for a stake in the Yuzhno-Russkoye gas field, Die Welt reported Monday.

Gazprom considers the previously arranged price of 1.2 billion euros ($1.6 billion) and some Hungarian assets too low, the newspaper reported, citing unidentified people working for the two companies. (Bloomberg)

TMK Net Profit Up 81%

Steel pipe maker TMK posted 2006 net profit of $460.6 million, up 81.2 percent from the previous year, the company said Monday.

TMK said 2006 revenues rose 15.2 percent to $3.38 billion, and earnings before interest, tax, depreciation and amortization rose 49.2 percent to $793.9 million. (Reuters)

EBRD Leads LUKoil Loan

KAZAN -- The European Bank for Reconstruction and Development on Monday signed a $300 million loan to LUKoil support environmental and safety work.

The loan will help LUKoil make investments in pipeline replacement, reduce gas flaring, modernize its facilities and improve worker safety, the EBRD said in a statement. (Reuters)

Korea to Buy Russian LNG

SINGAPORE -- South Korea plans to import 7 million tons per year of liquefied natural gas from Russia by 2012, Interfax said Monday, citing the South Korean ambassador to Russia, Lee Kyu-hyung.

South Korea will receive 1.5 million tons of LNG from Russia next year under a 20-year supply contract with the Sakhalin LNG project. (Bloomberg)