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. Last Updated: 07/27/2016

Business in Brief

Enel May Buy OGK-5 in '07

ROME -- Enel plans to make a bid by the end of year to take over OGK-5, a wholesale power generator, Italian daily Corriere della Sera reported Tuesday without saying where it got the information.

Enel, which currently controls 29.9 percent of the company, is aiming to boost its stake to 70 percent and leave the remaining 30 percent in the hands of the Russian government, the newspaper said. (Bloomberg)

Ad Spending Surges

Advertising spending in Russia surged to a record $4.1 billion in the first half as companies including Procter & Gamble and Unilever fought for market share, the Association of Communication Agencies in Russia said in a presentation on Tuesday.

Spending jumped 24 percent to 105 billion rubles ($4.1 billion) from 84.5 billion rubles a year earlier, the association said. Television commercials accounted for half of the total, which works out to about $14.35 for each of the country's 142 million people. (Bloomberg)

Severstal Invests in Pipe Plan

Steelmaker Severstal will invest $300 million in a St. Petersburg project to upgrade and expand production of steel plate, a material needed for pipes, the city's authorities said.

The company will revamp its Kolpino-based plate mill No. 3 near St. Petersburg to expand output to 850,000 tons by next year and 1.5 million tons in the next few years, Sergei Fiveisky, deputy head of the St. Petersburg Economic Development, Industry and Trade Committee, said in a statement on the committee's web site. (Bloomberg)

Surgut Sales Rise in Q2

The country's fourth-largest oil firm, Surgutneftegaz, said Tuesday that its sales and profits rose year on year in the second quarter of 2007 after a decline in the previous three months.

The company had already reported earlier this month a year-on-year 15 percent increase in net profit in April to June to 31.2 billion rubles ($1.22 billion).

On Tuesday, Surgut said its sales under Russian accounting standards rose 0.6 percent year on year to 124.02 billion rubles ($4.86 billion) in the period. Sales rose by 15 percent from the previous quarter. (Reuters)

Petroneft Reports New Find

LONDON -- Petroneft Resources, an oil-exploration company with production in western Siberia, said it found oil at its West Lineinoye Prospect field.

The Lineinoye No. 7 well showed 2 meters of net pay, or oil-bearing rock, starting at 2,396 meters below sea level, the company said. The well was the last of three in this year's drilling program, all of which showed hydrocarbons, the company said. (Bloomberg)

Olympic Body to Be Created

A state Olympic corporation will be created to build sporting facilities and infrastructure in Sochi, which is hosting the Winter Olympics in 2014, Economic Development and Trade Minister German Gref said Tuesday, RIA-Novosti reported.

"All the work there will be carried out by the state Olympic corporation," Gref said, the agency reported.

He also said the corporation would come into being around the end of November and that a new law would be drafted to regulate its activities, RIA-Novosti said. (MT)

Novoship Says Net Rises

Novoship, the shipping company that the government is merging with bigger rival Sovcomflot, said Tuesday that first-half profit jumped 44 percent to a record on surging cargo demand.

Net income advanced to $138 million from $96 million in the same period last year, the company said on its web site. Revenue climbed 22 percent to $317 million in results calculated to international standards. (Bloomberg)

UralSib Hires Alfa's Weafer

UralSib, the country's second-largest nonstate bank, hired Chris Weafer as its senior equity strategist, Alfa said on its web site Tuesday.

Weafer, 51, worked for almost five years as chief strategist at Alfa Bank. He was named the country's top strategist in Thomson Extel's 2007 survey, Alfa's web site said. (Bloomberg)

Bank Zenit Plans Shares Sale

Bank Zenit, a bank partly owned by oil company Tatneft, is planning an initial public offering for October or November, Interfax said Tuesday, citing an unidentified person in the banking industry.

The bank will sell a 12.5 percent stake on the London and Russian stock exchanges, Interfax said. (Bloomberg)

OTP Bank Seeks Targets

BUDAPEST -- Hungary's OTP Bank is examining several small takeover targets, primarily in Russia, and may make one or more purchases before the end of the year, Chief Financial Officer Laszlo Urban told a news conference.

Urban said OTP was looking for regional banks with up to 40 branches and any purchase would cost less than $100 million. (Reuters)

Sekerbank Swings to Profit

ISTANBUL -- Sekerbank, the Turkish lender that sold a stake to Kazakhstan's Bank TuranAlem, swung to profit in the second quarter as loan revenue doubled, the bank said Monday.

Net income was 32.2 million liras ($24 million) versus a net loss of 9 million liras a year earlier, the bank said. (Bloomberg)

Raba Posts Profit

BUDAPEST -- Raba, a Hungarian maker of vehicle parts and military trucks, on Tuesday reported a second-quarter profit on higher sales to Russia.

Net income in the three months ended June 30 was 103 million forint ($554,330), compared with a loss of 644.4 million forint in the second quarter of 2006, the company said in a statement to the Budapest Stock Exchange on Tuesday.

Sales rose 10 percent to 14.5 billion forint. (Bloomberg)

Lykov Gets Post at Polyus

Polyus Gold named Kirill Lykov deputy general director to run the company's daily operations, the company said in a statement Tuesday.

Lykov, who oversaw assets at turbine producer Power Machines, "will take care of all areas of the group's day-to-day operations," the firm said. (Bloomberg)

Ruukki Profit Falls 22%

Ruukki Group, a Finnish investment company, said Tuesday that profit fell 22 percent as it booked costs to set up forestry operations in Russia.

Net income fell to 1.07 million euros ($1.45 million) from 1.38 million euros, Helsinki-based Ruukki said in a stock exchange statement. Sales of products including housing and furniture rose 66 percent to 56.2 million euros. (Bloomberg)