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. Last Updated: 07/27/2016

Business in Brief

Arms Firm to Use Euros

The state arms exporter will move to price its weapons in euros after the recent fall in the dollar, Rosoboronexport chief Sergei Chemezov said, Itar-Tass reported Wednesday.

Chemezov said the fall of the dollar meant that euros would be used for long-term contracts, Itar-Tass reported. Defense officials estimate this year's weapons exports will grow to $7.5 billion. (Reuters)

Gazprom Gains Licenses

Gazprom won three licenses to explore and develop natural gas deposits in the Krasnoyarsk region, said Yury Filippov, the head of the regional subsoil resources agency, Interfax reported.

Gazprom bid 44 million rubles ($1.8 million) for the Karabulsky deposit, and 36 million rubles each for the Troitsky and Verkhnemanzinsky deposits, Interfax reported.

Karabulsky has estimated reserves of 56 million tons of oil equivalent, Troitsky may hold 45 million tons and Verkhnemanzinsky may have 48 million tons, the news agency said. (Bloomberg)

CPI Set to Grow 0.4%

The consumer price index will grow 0.4 percent in September while full-year inflation will exceed the official target of 8 percent, the Economic Development and Trade Ministry's chief forecaster said Wednesday.

"With the current price growth, it [full-year inflation] will be higher [than 8 percent], more than slightly higher," said Andrei Klepach, head of the ministry's macroeconomic forecasts department. (Reuters)

Aricom Posts Loss on Costs

LONDON -- Aricom, the British miner of iron ore and titanium in Russia that was spun off from Peter Hambro Mining, on Wednesday reported a first-half loss on costs related to the construction of its Kuranakh project.

The net loss in the six months to June 30 was $48,000, compared with a deficit of $931,000 million a year earlier, the company said. (Bloomberg)

Wheat Export Duty Planned

The government will introduce a wheat export duty of 10 percent, or no less than 22 euros ($31.08), per ton, by the end of November, the Economic Development and Trade Ministry's chief forecaster said Wednesday.

A 30 percent export duty on barley would also be applied before Dec. 1, Andrei Klepach, head of the ministry's macroeconomic forecasts department, told a news conference. (Reuters)

LUKoil Gets Into Cyanide

LUKoil, the country's largest independent oil producer, started producing sodium cyanide Wednesday as it seeks to replace imports of the poisonous salt used in gold mining.

Saratovorgsintez, LUKoil's chemicals unit in Saratov, will make about 18,000 tons of the substance per year, said Alexei Smirnov, the head of LUKoil's chemicals group. (Bloomberg)

RusAl to Invest in Bauxite

United Company RusAl, the world's biggest aluminum producer, will spend $5 billion in the next five years to upgrade its bauxite operations, which already hold enough reserves for a half-century, Pavel Ovchinnikov, director of the company's alumina division, said Tuesday.

The metals maker will spend the cash on refining equipment that will boost alumina output by 55 percent to 17.5 million tons a year, Ovchinnikov said. (Bloomberg)

Lenenergo Seeks $200M

Lenenergo, the power transmission operator in St. Petersburg, will hold a tender for a 5 billion ruble ($200 million) loan and a same-size credit line to finance infrastructure projects, the company said Wednesday in a statement.

The operator wants a three-year syndicated loan and a credit line for five years as it plans to spend 22.8 billion rubles next year, the company said. Lenenergo sold a total of 6 billion rubles in two issues of five-year bonds earlier this year. (Bloomberg)

Exxon Buys Azeri Crude

ALMATY, Kazakhstan -- ExxonMobil won an auction to buy 1 million barrels of Azeri Light crude oil, Azerbaijan's state oil company, Socar, said Wednesday.

ExxonMobil England & Wales will load the oil in Ceyhan, a Turkish port on the Mediterranean, from Oct. 19 to Oct. 22, Socar said. (Reuters)

Chelyabinsk's New Shares

Chelyabinsk Zinc Plant, producer of about 60 percent of the country's zinc, will distribute 49 million new shares to stockholders by Oct. 2 to increase trading, the company said Wednesday.

The Federal Service for Financial Markets approved the share issue Tuesday, the company said.

The new shares will not raise additional funds. (Bloomberg)

AiRUnion to Issue Notes

Airline AiRUnion plans to issue three-year credit-linked notes for no less than 3 billion rubles ($119.9 million) before Oct. 10, one of the issue organizers said Wednesday.

An official at Russkiye Fondi investment company said the annual coupon rate would be 11.8 percent. The other organizer is Gazprombank.

It will use the bulk of proceeds from the CLN issue to refinance short-term debt. (Reuters)

Novatek Rating Upgraded

Novatek, the country's largest nonstate-controlled natural gas producer, had its credit rating raised one level by Standard & Poor's on Wednesday after sales gained faster than costs in the first half.

Novatek's rating was increased to BB, which is two levels below investment grade, with a positive outlook, Standard & Poor's said. (Bloomberg)

Tecnicas Wins Siberia Deal

MADRID -- Tecnicas Reunidas won a contract from Alliance Oil to rebuild and upgrade a refinery in Siberia, newspaper El Pais reported Wednesday, citing people close to the project.

The contract is valued at about 574 million euros ($810 million), the newspaper said. (Bloomberg)

Surgut Up on Dividend Talk

The preferred stock of oil firm Surgutneftegaz jumped over 9 percent Wednesday as traders cited rumors of a large dividend payout for 2007 after small payments in previous years.

The volume of transactions in Surgut's preferred stock hit 2.9 billion rubles ($115.9 million) on the MICEX bourse and $3 million on the RTS exchange -- a record daily volume for the past year. (Reuters)

Sistema Buys Shyam Stake

Services conglomerate Sistema has bought 10 percent of Indian telecoms operator Shyam Telelink for $11.4 million and said Wednesday that it planned to raise its stake to 51 percent.

Sistema said that the deal would amount to $58.1 million if an Indian regulator allowed it to acquire control of Shyam Telelink. (Reuters)