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. Last Updated: 07/27/2016

Business in Brief

Revenue May Exceed Target

Government revenue may be higher than planned in 2008 because the economy is expanding more than forecast, Finance Minister Alexei Kudrin said, Vedomosti reported Wednesday.

The government's budget revenue may exceed 6.64 trillion rubles ($260 billion) as the economy is expanding as much as 7.1 percent, more than the 6.5 percent originally forecast by the government, Kudrin said, the newspaper reported. (Bloomberg)

Integra Wins Rosneft Deal

LONDON -- Integra Group, an oilfield service provider, said Tuesday that it won a contract to supply four heavy drilling rigs to Rosneft.

The rigs are expected to be delivered to Rosneft's subsidiary RN-Bureniye next year, the company said in a statement.

Integra will also supply another three rigs in 2009 and 2010 to Rosneft, the contract said. (Bloomberg)

Sakhalin Work Can Resume

Gazprom and Shell's natural gas venture got permission to resume construction of a pipeline across Sakhalin, while Russian environmentalists said they found new violations.

The Federal Service for the Inspection of Natural Resources Use approved new design plans for the line after calling a halt to work last week, Ivan Chernyakhovsky, a spokesman for the Sakhalin Energy venture, said Tuesday.

The pipeline section that was reviewed crosses a seismic fault line. (Bloomberg)

Manufacturing PMI Rises

The pace of the country's manufacturing growth accelerated slightly in July as industry grew across a broad front, the VTB Bank Europe purchasing managers' index showed Wednesday.

The index's headline reading rose to 53.4 in July from 53 in the previous month, above the 50 mark that separates expansion from contraction. (Reuters)

Surgutneftegaz Boosts Profit

Surgutneftegaz said Wednesday that second-quarter profit more than tripled from the previous three months after oil prices rose.

Net income increased to 31.2 billion rubles ($1.2 billion) in the second quarter from 8.1 billion rubles, the oil company said. (Bloomberg)

Refineries Plan Maintenance

LUKoil's Perm refinery and Moscow's independent refinery plan regular maintenance from August to September, trading sources said Tuesday.

The Moscow refinery will close two of its primary processing units for maintenance in September, cutting crude oil runs by around one tenth from Sept. 6. LUKoil's second largest refinery, Perm, which produces 240,000 barrels per day, will cut primary processing runs by 34 percent for 17 days on Aug. 21 to Sept. 6. (Reuters)

Inter RAO to Issue Bond

Inter RAO, the export and import arm of the former electricity monopoly Unified Energy System, plans a debut 10 billion ruble ($390.6 million) bond, the company said Wednesday.

UES owns 60 percent of Inter RAO while the Federal Atomic Energy Agency holds the rest. Inter RAO, which plans an initial public offering in 2008, did not specify how it would use the proceeds of the bond issue. (Reuters)

Severstal Gets EBRD Loan

The European Bank for Reconstruction and Development will lend up to 500 million euros ($685.1 million) to steel major Severstal to help fund an energy saving program, the bank said Tuesday.

"It is estimated that the investment program would reduce Severstal's primary energy consumption by 5 to 10 percent compared to existing operations, with environmental benefits through CO2 emissions reduction in the order of 600,000 tons per annum," the bank said in a statement. (Reuters)

Volga TGK to Float Shares

Volga TGK, one of more than a dozen regional power generating companies being spun off under a reformation of the industry, said Wednesday that it planned a public offering of stock in early 2008.

The stock offering by Volga TGK will be a "classic" market float rather than a combination of a rights issue and stake sale by state-controlled Unified Energy System, company head Vasily Nikonov told reporters. (Reuters)

Anadolu Cam Eyes Russia

ISTANBUL -- Turkish glassmaker Anadolu Cam Sanayii plans to buy a plant in Russia to expand its business overseas, the company said in a filing with the Istanbul Stock Exchange on Tuesday.

Anadolu Cam will sign an exclusive agreement to buy a plant in Russia with an annual capacity of 95,000 tons, the company said. The company did not say where the plant is located. The company said it would spend $23.8 million on a separate plant located in the Krasnodar region. (Bloomberg)

Sistema Looks to Slovenia

LJUBLJANA, Slovenia -- Sistema, Vladimir Yevtushenkov's holding company, may make an offer for a stake in Slovenia's national phone company, Telekom Slovenije, Slovenian business daily Finance reported Wednesday, citing people familiar with the situation.

Sistema officials have met Slovenian analysts who might become consultants to the purchase of the state-owned company, the newspaper said. (Bloomberg)

Usmanov Creates Holding

Billionaire Alisher Usmanov has created a media holding to manage part of his media assets, Interfax reported Wednesday.

Usmanov appointed former journalist Andrei Galiyev as head of the new company, which will be called Kommersant Holding. (MT)

Nazarbayev Relatives Sue

NEW YORK -- Two relatives of Kazakh President Nursultan Nazarbayev filed papers in the Manhattan Supreme Court seeking to get back $200,000 they paid to a U.S. company for education services they did not receive, the New York Post reported Wednesday.

Myra Nazarbayev and her son, Daniyar, said they paid the money to the Long Island-based IvySuccess company and expected that the company would help Daniyar enter one of the top universities in the United States, the newspaper said, citing the family's lawyer. (Bloomberg)

For the Record

Evraz Group said Wednesday that its board approved the purchase of a 24.9 percent stake in Highveld Steel & Vanadium from Credit Suisse for as much as $219 million. (Bloomberg)

Mikhail Pogosyan left his post as general director of Sukhoi Design Bureau, a company spokesman said Wednesday. Pogosyan will continue in his role as design bureau's board chairman and as the CEO of Sukhoi Civil Aircraft, Vadim Razumovsky said. (Bloomberg)