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. Last Updated: 07/27/2016

Business in Brief

Russia Asks More for Carrier

Russia will push India to pay far more that originally agreed for a refurbished Soviet-era aircraft carrier that is already a year overdue, the firm overhauling the ship said on Tuesday.

India, a key buyer of Russian arms such as tanks and fighter jets, in 2004 signed a $1.6 billion deal with Russia for the delivery of the modernized Admiral Gorshkov carrier by 2008.

The carrier may now cost between $2.5 billion and $4 billion depending on "tough" negotiations with New Delhi, said Nikolai Kalistratov, the head of Sevmash Shipyard, Interfax reported.

"According to our calculations, verified by the Federal Tariffs Service, all in all at least $2.5 billion is needed," he said.(Reuters)

AvtoVAZ Seeks $730M Loan

AvtoVAZ said Tuesday that it would hold an extraordinary shareholders meeting May 29 to approve a 25 billion ruble ($730 million) loan from 25 percent shareholder Russian Technologies, Interfax reported.

Other major shareholders in Russia's largest carmaker are Troika Dialog and France's Renault, both of which also have blocking stakes of 25 percent. (MT)

Soviet Debt to Be Reconciled

Russia expects to reconcile an additional $4 billion of former commercial debts of the Soviet Union by the end of this year, Finance Ministry Debt Department head Konstantin Vyshkovsky said Tuesday.

This will probably be the last tranche of so-called Forum of Trade Creditors debt that Russia will reconcile, Vyshkovsky said in London.

The process involves Russia's government exchanging sovereign eurobonds due 2010 and 2030 for Soviet-era debt held by private companies and banks, according to a Dec. 25 Finance Ministry statement. Most of the outstanding claims will be reconciled by the end of the second quarter, the ministry said in December.(Bloomberg)

Piebalgs Sees Cooperation

HANOVER, Germany -- EU Energy Commissioner Andris Piebalgs said Tuesday that he was convinced that Russia and Ukraine will work toward avoiding any future gas supply disruptions to Europe.

"If there is another crisis, their credibility will be ruined. I think it is important for them that it [the transit system] functions in the future," Piebalgs told reporters at the Hanover industry fair. (Reuters)

Rambler Sees Earnings Up

Rambler Media posted higher earnings before interest, taxes, depreciation and amortization and revenue for 2008, helped by a growth in display and banner advertising, and said cost-saving measures initiated in the fourth quarter would continue in 2009.

Rambler said it cut about 10 percent of its jobs to 660 employees at the end of the year from October 2008 levels.

EBITDA rose to $16.1 million, compared with $7.6 million in the year-ago period, it said.(Reuters)

Rostelecom to Pay Dividend

Rostelecom said Tuesday that its board of directors had recommended paying a 2008 dividend of 2.91 rubles ($0.086) per preference share and 1.94 rubles per ordinary share.

The company said in a statement that the total amount of the proposed dividend would be 2.12 billion rubles ($62.1 million), or 30 percent of its net profit for the year.(Reuters)

Sberbank to Hold BTA Talks

Sberbank will hold talks with Kazakh officials next month on taking over BTA Bank, which was nationalized in February, BTA chairman Arman Dunayev said Tuesday.

Sberbank representatives will discuss the results of their due diligence with officials from BTA and Samruk-Kazyna, the sovereign wealth fund operator that controls BTA, Dunayev said at a conference in Almaty.(Bloomberg)

36.6 Ends Boots Alliance

Pharmacy chain 36.6 said its supply agreement with Alliance Boots Holdings ended by mutual consent on Jan. 1.

36.6 spokeswoman Irina Lavrova said demand for Alliance Boots products had not been as strong as originally expected, prompting her company to discontinue the supply deal. She said the contract included branded goods such as Boots skin cream, Toni & Guy hair products and No. 7 cosmetics. (Bloomberg)

$1.5Bln Placed in Deposits

The Finance Ministry on Tuesday placed all of the offered 50 billion rubles ($1.49 billion) of temporarily free budget funds in three-month deposits at commercial banks. The ministry said the demand at the auction exceeded the amount on offer and totaled 85 billion rubles. (Reuters)