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. Last Updated: 07/27/2016

Business in Brief

Sistema Plans Share Split

Diversified conglomerate Sistema plans to split the nominal value of its ordinary shares by 1,000 times to increase the stock's liquidity, the firm said Tuesday.

The company will hold an extraordinary general meeting on Sept. 17. The record date is set for Aug 5. The firm's share capital will consist of 9.65 billion ordinary shares following the split. (Reuters)

China's $1.1Bln Pipe Link

BEIJING -- China, the world's biggest energy consumer after the United States, will spend 8 billion yuan ($1.1 billion) to construct a section of a crude oil pipeline to transport the fuel from neighboring Russia.

The Chinese section of the pipeline will be 965 kilometers long and construction will start this year and finish in 2010, China Planned Projects, an affiliate of the National Development and Reform Commission, said on its web site Tuesday. (Bloomberg)

Rosneft JV Wins Licenses

Rosneft and China National Petroleum Corporation's joint venture, Vostok Energy, won its first licenses to develop two oil fields in eastern Siberia, Interfax reported Tuesday.

Vostok Energy on Tuesday bid 780 million rubles ($31 million) for the license to the Verkhneichersky deposit, which lies 90 kilometers from the East Siberia Pacific Oil pipeline route, Interfax reported. (Bloomberg)

Rosneft Crude Exports Sale

LONDON -- Rosneft plans to offer customers crude and fuel exports at auctions to improve sales, a spokesman for the company said Tuesday.

The company is developing a set of regulations for tenders, which may be approved by the end of the year, said the spokesman. The company has recently offered some export volumes to a limited number of customers to test the market, the spokesman said. (Bloomberg)

Norilsk Sees Output Up

Norilsk Nickel said Tuesday that it had increased its nickel output forecast for 2007 to 295,000 to 300,000 tons from the earlier 270,000 to 275,000 tons due to acquisition of new assets.

The firm kept its output forecast for copper, palladium and platinum unchanged.

The firm said the acquisitions allowed it to raise its nickel output to 71,000 tons in the second quarter of this year from 61,000 tons in the second quarter of 2006 and first quarter of 2007. (Reuters)

Magna Shareholders to Vote

TORONTO -- Magna International, the Canadian auto-parts maker, won an Ontario court's approval Monday to have shareholders vote next month on the sale of a $1.5 billion stake to Oleg Deripaska.

Ontario Superior Court Judge David Stinson, at a hearing in Toronto, ordered Magna to give shareholders three more days than the company requested to register any dissent, setting an Aug. 27 deadline. (Bloomberg)

VTB Dips Below IPO Price

Shares of VTB Group, which raised $8 billion in a May stock sale to the public, finished trading Monday cheaper than their initial offer price, Vedomosti said Tuesday.

Finance Minister Alexei Kudrin in June pledged that the shares would not fall below their initial offering price, and VTB chairman Andrei Kostin said such an event could cost him his job, Vedomosti reported. (Bloomberg)

No Ford Brands for GAZ

LONDON -- Oleg Deripaska's Russian Machines, owner of automaker GAZ, said Monday it currently had no interest in bidding for Ford's premium British brands Jaguar and Land Rover.

Citing sources from Ford, German magazine WirtschaftsWoche said Saturday that Deripaska was interested in those brands and would also be a possible bidder for Volvo should Ford decide to sell the Swedish brand. (Reuters)

UMMC Copper Output Up

YEKATERINBURG -- Urals Mining and Metals Co., said Tuesday it produced 189,465 tons of copper cathodes from January through June, up 13 percent from year-ago volumes.

"High results have been achieved mainly due to sufficient supplies of raw materials and efficient organization of the technological process," said Viktor Ashikhin, chief engineer of UMMC's core unit Uralelectromed. (Reuters)

Bekaert Eyes Uralkord

BRUSSELS -- Belgian steel cord and wire manufacturer Bekaert is aiming to complete the acquisition of Russia's Uralkord by the end of 2007, CEO Bert De Graeve told reporters.

The Belgian firm announced in December that it signed a declaration of intent to buy its Russian counterpart. (Reuters)

Moscow to Build Airports

The Moscow city government plans to take part in the reconstruction and redevelopment of 14 airports in the Central, Northwest and Volga federal districts, said first deputy of the city's transportation and communication department, Sergei Kalitin, RIA-Novosti reported Tuesday.

Airports in Nizhny Novgorod, Lipetsk, Kaluga, Voronezh and Volgograd are included among those being studied by City Hall. (MT)

Veropharm Profit Jumps

Veropharm, the drug-making unit of pharmacy chain 36.6, said first-quarter profit surged 78 percent as higher incomes enabled individuals to buy more pharmaceutical products, said Mikhail Kolosov, spokesman for the company.

Net income climbed to $5.5 million from $3.1 million one year earlier, Kolosov said. Sales gained 23 percent to $24.1 million. (Bloomberg)

Chelyabinsk Zinc Q1 Soars

Chelyabinsk Zinc Plant said Tuesday first-quarter net profit rose 77 percent to $21 million on the back of booming prices and increased sales.

Chelyabinsk said sales rose by 70 percent to $139 million, while earnings before interest, taxation, depreciation and amortization rose by 95 percent to $39 million. Results were reported according to international financial reporting standards. (Bloomberg)

EGAIS May Lose Powers

The Federal Tax Service has proposed transferring control of the production and retail of spirits and alcoholic goods to regional authorities and removing licensing powers from the Unified State Automated Information System, or EGAIS, RIA-Novosti reported Tuesday.

Responsibilities for licensing and quality control currently lie with the Agriculture Ministry and the Federal Tax Service, the agency said.

In a letter addressed to the government, the head of the tax service, Mikhail Mokretsov, suggested that EGAIS should be used exclusively as a database for compiling information on the production and retail of alcoholic products. (MT)