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. Last Updated: 07/27/2016

Business in Brief

Proposal to Lower Oil Duty

The Economic Development Ministry has sent a proposal to the government to lower export duties on light oil products from 2012 in order to encourage companies to produce higher-value fuels, the ministry said Wednesday.

Under the proposal, light and heavy oil products would have the same rate of export duty, equal to 0.55 times the export duty on crude oil, the ministry said. (Bloomberg)

Sberbank’s Loan to Evraz

Sberbank said it agreed to lend 8.8 billion rubles ($283 million) to three of Evraz Group’s metals units, the lender said Wednesday.

Sberbank will lend the money to Evraz’s Nizhny Tagil and West Siberian steel plants and its Kachkanarsky iron-ore mining unit under a government plan to support “priority” industries in Russia, without detailing how much each would receive, the lender said. (Bloomberg)

Rostelecom to Unite Units

Rostelecom may combine with the seven regional units of parent company Svyazinvest, Vedomosti said Wednesday, citing unidentified bankers.

Shares of the units will be converted into shares of Rostelecom under proposals drawn up by advisers on Svyazinvest’s reorganization, including Morgan Stanley, Renaissance Capital, VTB Capital and McKinsey, the newspaper said. (Bloomberg)

MTS to Buy Comstar Stake

Mobile TeleSystems will buy a controlling stake in Comstar United TeleSystems for $1.27 billion from parent company Sistema, the companies said Wednesday.

Mobile TeleSystems will pay $5.98 per Global Depositary Receipt for a 50.91 percent stake in Comstar after the plan was approved by its board and that of Sistema. (Bloomberg)

GM to Forego Royalties?

Germany wants General Motors to forego royalties from Opel and set aside the payments as collateral in the event of a default on government-backed loans, Deputy Economy Minister Jochen Homann said Wednesday.

Homann, who leads Germany’s side in talks on Opel’s disposal, met in Berlin on Tuesday with John Smith, GM’s chief negotiator, and executives from Magna and RHJ International. GM and Magna, selected by Germany as the preferred bidder, could overcome remaining obstacles “within 48 hours,” Homann said Wednesday. (Bloomberg)

For the Record

  • The Federal Anti-Monopoly Service on Wednesday dropped an investigation into Raiffeisenbank and 18 insurance companies after they fixed violations in their car loans businesses, Prime-Tass reported. (MT)
  • LUKoil set the coupon for its coming issue of three-year notes at 13.35 percent, the company said in a regulatory filing Wednesday.  (Bloomberg)
  • Moscow sold 3.5 billion rubles ($112 million) of bonds due 2016 priced to yield 14.11 percent, the city’s debt committee said in a statement Wednesday. (Bloomberg)

Inflation in the year to Aug. 3 reached 8.1 percent, the Federal Statistics Service said in a statement on its web site Wednesday. (Bloomberg)