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. Last Updated: 07/27/2016

Business in Brief

Gazprom, IES Eye TGK-7

Gazprom and Integrated Energy Systems plan to buy power generator TGK-7 together, Interfax reported Tuesday, citing two unidentified people with knowledge of the matter.

Gazprom and IES, the power-industry holding company of billionaire Viktor Vekselberg, agreed that $450 per kilowatt of installed capacity was a "fair price" for the company, the news service said. (Bloomberg)

Da Vinci Fund in London

Da Vinci Capital Management, a Russian investment company, plans to list one of its funds in London by March to raise about $200 million.

Da Vinci's CIS Private Sector Growth Fund, focusing on investment in real estate and consumer markets in the former Soviet republics, will be listed on the London Stock Exchange's new Specialist Fund Market segment, a company official said. (Bloomberg)

TNK-BP Gasoil Exports

LONDON -- BP's Russian venture plans to boost gasoil exports after completing a pipeline to the Baltic Sea in the second quarter, TNK-BP executive vice president Tony Considine said Tuesday.

The pipeline will have a capacity of 8.7 million tons of gasoil per year, Considine said. (Bloomberg)

ArcelorMittal Warned

ALMATY, Kazakhstan -- The Kazakh government on Tuesday ordered ArcelorMittal, the world's biggest steelmaker, to improve safety or lose operating permits after a mine blast killed 30 workers.

A commission investigating last month's explosion made 41 recommendations that must be met by ArcelorMittal's local unit, said Emergency Minister Vladimir Bozhko. (Bloomberg)

LUKoil Shuts German Tap

LUKoil stopped shipping crude oil to Germany by pipeline in a repeat of a pricing dispute that disrupted supplies for two months last year.

LUKoil halted February shipments through the Druzhba pipeline while demanding higher prices from traders in Germany, spokesman Dmitry Dolgov said. (Bloomberg)

Kashagan Reserves Lowered

ROME -- Eni, the Italian oil company developing the Kashagan deposit, said Tuesday that it had reduced proven reserves booked for the field by 13 percent because of higher oil prices and clauses in its production agreement with the Kazakh government.

Eni said in a securities filing that it had 520 million barrels of proven reserves at Kashagan at the end of 2007. (Bloomberg)

Sakhalin-1 Oil for Japan

TOKYO -- Nippon Oil, Japan's largest refiner, signed a long-term contract to buy oil from Sakhalin.

Nippon Oil will purchase one vessel of oil, or 720,000 barrels, every quarter from the $13 billion Sakhalin-1 project starting this year, sources familiar with the deal said. (Bloomberg)

Petroneft Reserves Increase

AMSTERDAM -- Petroneft Resources, a U.S.-based oil explorer in Russia, on Tuesday reported an 81 percent increase in net proven and probable reserves at License 61 in Siberia.

The reserves in the Tomsk region field are estimated at 60.6 million barrels of oil, the company said. (Bloomberg)

For the Record

Kazkommertsbank on Tuesday denied a Vedomosti report last week that a stake of 10 to 15 percent had been sold to Renaissance Capital. (Bloomberg)

The Finance Ministry may cut the value-added tax rate from 18 percent to 15.9 percent, a smaller reduction than sought by business leaders and the Kremlin, Kommersant reported Tuesday. (Bloomberg)

Gazprom plans to sign a memorandum of understanding with Nigerian National Petroleum, the Daily Trust newspaper reported Tuesday. (Bloomberg)

United Company RusAl received clearance to build a 750,000-ton-per-year smelter costing $2 billion in the Irkutsk region, Interfax said Tuesday. (MT)

General Motors has begun assembling the Opel Astra model in St. Petersburg, the company said Tuesday, Interfax reported. (MT)