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. Last Updated: 07/27/2016

Business in Brief

10 Power Bids Miss

Only five of 15 price bids to provide new electricity capacity next year have been approved, the Market Council, a state-controlled watchdog, said Tuesday, recommending that the other ten make more economically justifiable proposals.

Generators compete for approval for prices for electricity generated at new stations and have to justify their offer. The council didn't identify any of the firms, which filed their bids earlier this month.

A source close to OGK-1 said the watchdog turned down its offered price of 500,000 rubles per megawatt per month. (MT)

Gazprom on Ukraine Debt

Ukraine's continued failure to pay for gas could hurt Russia's economy, as the funds could be reinvested at home, Gazprom spokesman Sergei Kupriyanov said Monday.

"The non-payments for gas are delivering a blow mainly to those sectors in which Ukrainian goods compete in the Russian market, namely steel, heavy machinery, power engineering and electrical engineering," Kupriyanov said, Interfax reported. "This cannot leave those sectors and those who work in them unaffected." (MT)

Naftogaz Set for Winter

Naftogaz should be able to supply Ukrainian consumers with gas until the "end of the heating season" if Gazprom cuts supplies on Jan. 1, Unian news agency reported Tuesday.

Ukraine's state-run energy company has enough gas in storage to maintain domestic supplies in "emergency mode," chief executive Oleh Dubina told the Kiev-based news service in an interview published Tuesday. (Bloomberg)

MTS Plans $1Bln Bond Sale

Mobile TeleSystems said Tuesday that it planned to sell as much as 30 billion rubles ($1.06 billion) of bonds to pay for its expansion.

The company's board approved selling 15 billion rubles of five-year bonds and 15 billion rubles of seven-year bonds, the MTS said statement. The sale is planned for the first quarter of next year and the date will depend on "market conditions," a company spokesperson said. (Bloomberg)

Polymetal to Cut Jobs by 5%

Polymetal plans to reduce its work force by about 5 percent and halve its exploration and maintenance spending. The St. Petersburg-based company will cut about 200 out of 4,400 jobs, including some exploration staff, chief executive Vitaly Nesis said Tuesday.

The company is seeing "no problems" with liquidity and has refinanced all of the $190 million debt due in the first half of 2009, he said. (Bloomberg)

Sechin on Strategic Firms

Gazprom and Rosneft are among energy producers on a list of 250 Russian companies that will get priority access to state loans and guarantees, Deputy Prime Minister Igor Sechin said Tuesday.

Gazprom hasn't asked the state for funding to exercise an option to buy 20 percent of its oil arm, Gazprom Neft, from Italy's Eni, he said. (Bloomberg)

RZD Cuts Profit Forecast

Russian Railways slashed its profit forecast for 2008 by more than half, chief executive Vladmir Yakunin said, RIA-Novosti reported.

Net income will probably fall to 2 billion rubles ($70.5 million), versus a revised estimate of 5.6 billion rubles and an original estimate of 12 billion rubles, Yakunin said. (Bloomberg)