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. Last Updated: 07/27/2016

Business in Brief

Defense Holding Planned

The government plans to create a holding company for defense enterprises as it prepares for possible share sales by subsidiaries, Kommersant reported Tuesday.

The new holding, Rostekhnologii, will comprise state arms dealer Rosoboronexport and its subsidiaries, including automaker AvtoVAZ and titanium producer VSMPO-Avisma, the newspaper said, citing the presidential administration. (Bloomberg)

Bashkir Firms Divvied Up?

Rosneft and Gazprom will take control of the six energy companies of the oil-rich republic of Bashkortostan, Interfax reported Tuesday.

A Moscow court ruled Aug. 15 that majority stakes in Bashneft, four oil refiners and a fuel retailer should be handed over to the government, Interfax said. Lawyers for the four investment funds that control the companies are appealing the decision.

Gazprom will acquire oil producer Bashneft, and Rosneft will acquire the rest of the companies, Interfax said, citing a person it did not identify. (Bloomberg)

Imperial in Refinery Talks

Imperial Energy, a London-listed oil producer with assets in Russia, is in talks with other oil companies to build a refinery in the Tomsk region, RBK Daily reported Tuesday.

Imperial may own up to 10 percent of the project, the newspaper said.

The refinery may have an initial capacity of 1 million tons per year, or 20,000 barrels per day, RBK Daily said, citing Yury Zelvensky, the head of Imperial's Tomsk operations. (Bloomberg)

Imperial Discovers Deposits

Imperial Energy, a London-based oil producer searching for oil and natural gas in Russia, said Tuesday that it discovered more crude in western Siberia.

Imperial found "potentially substantial oil deposits" at its North Chertalinskoye field and "promising intervals of oil" at its Nyulginskoye field, the company said in a statement. (Bloomberg)

MTS Profit Jumps 72%

Mobile TeleSystems, the country's largest cellular operator, said Tuesday that second-quarter profit jumped 72 percent to a record on subscriber gains in the former Soviet Union, beating estimates.

Net income climbed to $508 million from $295 million one year earlier, the company said in a statement. (Reuters)

NLMK Profit Rises 13%

Novolipetsk Steel, the country's fourth-largest steelmaker by output, boosted net profit 13 percent to $1.1 billion in the first half of 2007 by selling steel at higher prices and consolidating new assets, the company said in a statement Tuesday.

Novolipetsk said first-half revenue rose 42 percent to $3.6 billion. Earnings before interest, tax, depreciation and amortization rose 59 percent to $1.6 billion. (Reuters)

Fund Eyes OGK-4 Control

Prosperity Capital Management is looking for a strategic partner to gain a controlling stake in heat and electricity generator TGK-4, Ivan Mazalov, a director at the investment company, said Tuesday.

The money manager, which owns 19 percent of the power company, wants to buy both new shares and part of the stake owned by Unified Energy System, Mazalov said. (Bloomberg)

RZD to Invest $506Bln

Russian Railways will invest 13 trillion rubles ($506 billion) by 2030 to boost economic growth, the company's head, Vladimir Yakunin, told President Vladimir Putin in a meeting Tuesday.

"The idea of the program is to eliminate 'bottlenecks' in the infrastructure" of the railway system and to underpin "economic growth in the country," Yakunin said, according to a statement on the company's web site. (Bloomberg)

More Land for Suzuki Plant

TOKYO -- Suzuki, planning to open its first Russian plant in 2009, has doubled the factory's land size to give it more space for storing new cars, spokesman Takuma Mizuyoshi said Tuesday.

The St. Petersburg site rose to about 500,000 square meters following the purchase, Mizuyoshi said. (Bloomberg)

Russky Standart Costs

Cancellation of commissions on financial transactions has cost Russky Standart bank 6.2 billion rubles ($242 million) to 6.7 billion rubles, the bank said in its financial results for the first half of 2007, Reuters reported Tuesday.

The bank canceled all transaction charges for credit card holders and account holders from Aug. 15.

Russky Standart also revoked monthly commissions for existing loan arrangements from Aug. 23, the agency said. (MT)