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. Last Updated: 07/27/2016

Business in Brief

Mechel to Restructure Debt

Mechel will restructure $1 billion of a $1.5 billion bridge loan due May 15 and pay off the remainder in cash with funds borrowed from Gazprombank, banking sources said Thursday.

Three sources said the company had reached an agreement with lenders on the loan, but they did not say when the restructured debt must be repaid.

"The company has agreed on the fundamental parameters of the loan with the coordinating committee, and now the agreement must be signed with the entire syndicate, and the conditions could still be adjusted," a source at one of the Western banks in the syndicate said. (Reuters)

LUKoil's Sochi Turbine

LUKoil, which bought the TGK-8 utility, plans to start a 410-megawatt steam turbine in the first quarter of 2011 in the Krasnodar region as Russia prepares for the 2014 Winter Olympics in Sochi, LUKoil CEO Vagit Alekperov said Thursday.

"The Krasnodar Power Station will supply the electric and heat demands of Krasnodar in the interest of the region's economic development and the preparations and running of the Sochi 2014 Olympics," he said. (Bloomberg)

Vietnam Buys 12 Su-30s

Vietnam has signed a deal to buy 12 Sukhoi Su-30 fighter jets from Russia for about $500 million, media reported on Thursday, citing industry sources.

"A contract to deliver SU-30MK2 [jets] was signed by Rosoboronexport at the start of the year," Interfax quoted a defense industry source as saying.

Experts polled by Vedomosti and Interfax estimated that the contract would be worth between $500 million and $600 million. (Reuters)

Polymetal in Share Issue

Polymetal plans to issue new shares representing as much as a quarter of outstanding equity to buy domestic gold and silver deposits, it said Thursday.

Polymetal will issue as many as 84 million new shares, it said. The company has 315 million shares outstanding, according to figures on its web site confirmed by a spokeswoman Thursday.

Polymetal said it would buy the Goltsovoye silver deposit, as well as the Sopka Kvartsevaya gold deposit from billionaire Lev Leviev and Maiskoye gold deposit from Highland Gold Mining. (Bloomberg)

Russia Gave IMF $471M

Russia has given the International Monetary Fund $471 million this year to provide loans to Hungary and Romania through the organization's Special Drawing Rights overdraft facility, Interfax reported Thursday.

Romania will receive $303 million in loans while Hungary will get $167 million, the service said, citing Andrei Bokarev, deputy director of the Finance Ministry's department for international financial relations and state debt.

The money will come from Russia's Reserve Fund, he said. (Bloomberg)

Gazprom, Eni to Sign Deal

Gazprom and Eni plan to sign a second addendum to a memorandum on the South Stream pipeline project when the Russian and Italian prime ministers meet Friday, RIA-Novosti said.

Vladimir Putin and Silvio Berlusconi will oversee the signing in the Black Sea resort town of Sochi, said Dmitry Peskov, a spokesman for Putin, the news service reported. (Bloomberg)

Sedmoi's Takeover Chances

Sedmoi Kontinent shareholder Vladimir Gruzdev said the chance that France's Carrefour will buy the Russian retail chain is "close to zero," Vedomosti reported.

Gruzdev, who holds 10 percent of Sedmoi Kontinent, said in an interview that "now is not the time to sell Russian assets with good potential for business development." (Bloomberg)

IKEA May Halt Expansion

IKEA may halt its expansion in Russia as bureaucracy hampers business, said its Russian head, Per Kaufmann, Svenska Dagbladet reported.

The world's largest furniture retailer completed a shopping outlet in the Russian city of Samara about six months ago and has so far been unable to open the outlet because of red tape, according to the article. If the company remains unable to open the Samara shop, it may need to re-evaluate its Russian strategy, Kaufmann said. (Bloomberg)

For the Record

Power Machines reported a profit of $79.6 million in 2008, compared with a loss of $304 million in 2007, the company said Thursday. (Bloomberg)

Wimm-Bill-Dann expects sales by volume to rise this year as financial turmoil squeezes out smaller competitors, chairman David Yakobashvili said Thursday. (Bloomberg)