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. Last Updated: 07/27/2016

Business in Brief

Kovykta Plan Date Put Back

Gazprom will have an extra month to give the government a plan to develop the Kovykta field, Interfax reported Monday.

Gazprom's deadline to present a plan on Kovykta was extended until the end of September, Natural Resources Minister Yury Trutnev said, the agency reported.

Trutnev agreed to push the date back after meeting Gazprom executives Thursday, Interfax reported. (Bloomberg)

Oil Duty Reaches Record

The government has set a record high oil export duty for October to November of $250.30 per ton following a rise in global oil prices, a Finance Ministry official said Monday.

The duty represents a 12 percent increase from the previous duty of $223.90 per ton.

Export duties for refined products will also be increased to $181 per ton of light products from the current $163.20, and to $97.50 from $87.90 per ton of heavy products, such as fuel oil. (Reuters)

CPC Exports Rise 5%

Kazakh and Russian oil exports via the Caspian Pipeline Consortium to the Black Sea rose by 5 percent in August to 715,000 barrels per day from 681,000 bpd in July, the consortium said Monday.

The pipeline group is led by U.S. major Chevron and includes Transneft, ExxonMobil, Shell, LUKoil and BP.

The group exports oil from a terminal near Novorossiisk. Russian companies such as Rosneft, Surgutneftegas and TNK-BP also ship crude via CPC. (Reuters)

TNK-BP Net Falls 30%

Net profit of the country's third-largest oil producer, TNK-BP, fell by 30 percent in the first half of 2007 as it sold less crude amid lower oil prices, the company said Monday.

It said in a statement that its net income declined to $2 billion from $2.9 billion in the first half of 2006, while its revenues fell to $16.9 billion from $18 billion.

Total costs remained flat despite assets divestment at $14 billion, while income tax declined to $670 million from $1.1 billion. (Reuters)

Oil Fund Reaches $133Bln

The stabilization fund grew to 3.4 trillion rubles ($133 billion) as of Sept. 1 from 3.3 trillion rubles on Aug. 1, the Finance Ministry said Monday.

The fund was created in 2004 to cushion the budget from a fall in international oil prices. The fund collects mineral extraction and export duties when the price of oil exceeds $27 per barrel. (Reuters)

PwC to Sponsor CSKA

PricewaterhouseCoopers signed an official sponsorship agreement deal with the CSKA ice hockey club, the auditing firm said Monday, Interfax reported.

The funds provided by the deal will go toward improving the facilities at the club as well as providing support for the youth training program and other initiatives, the statement said, Interfax reported. (MT)

RBC's Profit Surges 74%

RBC Information Systems, owner of the only Russian-language television channel dedicated to business, said Monday that profit surged 74 percent last year, spurred by growth in the country's media market.

Net income climbed to $40 million from $23 million a year earlier, according to the audited financial results reported under international accounting standards, RBC said. (Bloomberg)

Veropharm Profit Rises 48%

Veropharm, the drug-making unit of pharmacy chain 36.6, said Monday that first-half profit rose 48 percent as higher incomes enabled people to buy more pharmaceutical products.

Net income climbed to $11 million from $7.5 million one year earlier, Veropharm, which specializes in cancer treatments, said in a statement. Sales gained 32 percent to $59.5 million. (Bloomberg)

VTB Merger Suspended

State-controlled bank VTB has suspended its full merger with Promstroibank due to global market volatility but is not scrapping the deal, a bank executive said Monday.

The merger with Promstroibank, a midsized regional bank based in St. Petersburg that was recently renamed VTB North-West, had been due for completion by the end of 2007 by converting VTB North-West's shares into shares in VTB. (Reuters)

Sukhoi Approves Loan

Sukhoi Civil Aircraft, a unit of jet fighter maker Sukhoi Aviation Holding, said Monday that it approved the terms of borrowing 100 million euros ($136.3 million) from a state bank to help finance a new airliner.

Sukhoi Civil Aircraft's board agreed on Friday to the 10-year loan from Sberbank, the company said. (Bloomberg)

Almaz-Antei to Build Plants

Air defense concern Almaz-Antei, the maker of S-300 missile systems, signed an accord with Atomstroiexport to help build nuclear reactors as the country seeks to more than double its atomic energy capacity, the two companies said Monday in a statement.

The defense company will produce parts for nuclear reactors at its Russian plants and work with Atomstroiexport to develop technologies, the companies said. (Bloomberg)

Tatars Seeks $3Bln Loan

The Eurasian Development Bank may finance $3 billion worth of projects in the republic of Tatarstan, the lender's board chairman, Igor Finogenov, said Monday, Interfax reported.

"Investment figures are still at a preliminary stage as we have not yet held talks on business plans, but we will do that soon," Finogenov said after a meeting with Tatarstan leader Mintimer Shaimiyev. (MT)

Amtel Cancels Bond Sale

LONDON -- Amtel-Vredestein, the country's third-biggest tire maker, canceled its first sale of bonds in euros because of "adverse market conditions," the company said Monday.,

The company said it will "investigate a range of other funding options" to raise the 150 million euros ($200 million) it planned to borrow.

Amtel, registered in the Netherlands, was founded in 1990 as an equipment provider for Russia's defense industry and a maker of natural rubber for tire producers. (Bloomberg)

Ukraine Miners Protest

KIEV -- Miners went on strike at a Ukrainian coal mining company, accusing the government of low investment and protesting a new chief executive officer, the head of the Miners' Independent Trade Union, Mykhaylo Volynets, said Monday.

About 9,000 miners took to the streets Monday in the Donetsk region, the country's coal center, Volynets said. They were protesting conditions at Krasnoarmeyskvyhillia, a state-run company that controls four mines. (Bloomberg)