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. Last Updated: 07/27/2016

Business in Brief

Transneft to Sue BP?

Transneft said Wednesday that it could take Caspian Pipeline Consortium member BP to court if it refuses to approve the link's expansion.

All shareholders but BP have agreed to expand the Chevron-led pipeline, which takes 33 million tons of Kazakh crude to the Black Sea port of Novorossiisk every year.

Russia, which owns 31 percent in the consortium as a host state, pressed for expansion, but BP said it opposed the terms as more funding was needed and was looking to sell its 6.6 percent stake. (Reuters)

LUKoil Wants OPEC Cut

A "significant" reduction in OPEC's oil production may drive the average price of crude to more than $80 a barrel next year, aiding the Russian economy, LUKoil said.

Russia should support any decision by the Organization of Petroleum Exporting Countries to cut output, Leonid Fedun, the firm's deputy CEO, said Wednesday.

An average oil price of more than $80 a barrel would be a "great benefit" for the Russian economy and would provide "considerable support" for domestic companies, Fedun said. (Bloomberg)

RusAl's Venezuelan Deal

United Company RusAl may set up a joint venture in Venezuela to make 750,000 tons a year of primary aluminum.

The venture with Venezuela's state-owned Venezolana de Guayana would produce the metal along with 1.4 million tons of alumina, Venezuela's Ministry of Basic Industries and Mining said Wednesday. (Bloomberg)

Wingas Drops Pipeline Plan

Wingas Transport, the energy transporter owned by BASF and Gazprom, said Wednesday that it dropped plans to build a 600 million euro ($757 million) German gas pipeline because of price regulation.

The project was halted because a decision by Germany's Federal Network Agency to fix long-distance transport fees may threaten profits, the company said in an e-mailed statement. (Bloomberg)

Polymetal to Buy Ayax

Polymetal agreed to buy Ovaca Gold's Ayax unit for $31 million in cash and stock.

Ayax holds Ovoca's interest in the Goltsovoye silver deposit, it said.

The $31 million comprises $11 million in cash and 7.5 million Polymetal common shares, the silver miner said. (Bloomberg)

Novatek Ups Plant Capacity

Novatek increased processing capacity of its Purovsky Gas Condensate Processing Plant by 3 million tons a year with the completion of a second phase of construction.

The company will now be able to produce 3.75 million tons of stable gas condensate a year and 1.25 million tons of liquefied petroleum gas, Novatek said Wednesday. (Reuters)

For the Record

Sberbank lent 150 billion rubles ($5.5 billion) to corporate clients and 50 billion rubles in loans to individuals in September and October. (Bloomberg)

Southern Telecom said Wednesday that it had received a 55.5 million euro ($70.06 million), two-year loan to finance its operational activities. (Reuters)