Yesterday in Brief for May 8, 2008
Digest of headline news from May 7 to 11:30 a.m. Moscow time on May 8:
BUSINESS & FINANCE
*** RUSSIAN MONETARY BASE UP 2.4 BLN RUBLES TO 4164.9 BLN RUBLES ON MAY
4
The narrow monetary base in Russia stood at 4164.9 bln rubles on
May 4, up from 4162.5 bln rubles on April 28 the Central Bank reported
on Thursday.
*** RUSSIAN INTL RESERVES UP $4.4 BLN TO $533.9 BLN IN WEEK TO MAY 2
Russia's international reserves grew $4.4 billion to $533.9 billion
in the week to May 2, the Central Bank said on Thursday.
The reserves stood at $529.5 billion on April 25.
*** MEDVEDEV SWORN IN AS RUSSIAN PRESIDENT
Dmitry Medvedev has been officially sworn in as president of the
Russian Federation.
Medvedev took an oath with his hand on the Russian Constitution to
become the third president of Russia at an inauguration ceremony in the
Kremlin attended by over 2,000 people, including more than 140 foreign
guests, on May 7.
"While exercising the powers of the president of the Russian
Federation, I swear to respect and protect people's rights and freedoms,
observe and defend the constitution of the Russian Federation, defend
the state's sovereignty, independence, security, and integrity, and
faithfully serve the people," Medvedev said while pronouncing the text
of the oath with his right hand on a special edition of the Russian
Constitution, which is considered an official symbol of presidential
power in Russia, along with the presidential standard and the
presidential sign.
Constitutional Court Chairman Valery Zorkin declared that Medvedev
had officially assumed the office of Russian president.
*** RUSSIA HAD 0.2% INFLATION FOR MAY 1-5 - ROSSTAT
Russia had 0.2% inflation in the first five days of May, Federal
State Statistics Service (Rosstat) said on Wednesday.
Consumer prices increased 0.3% in the period April 29-May 5.
Year-to-date inflation in 2008 through May 5 amounted to 6.5%.
Prices grew 0.2% in the first week of May 2007, 0.6% in May 2007 as
a whole and 4.2% in the first five months of 2007.
*** RUSSIAN RUBLE STRENGTHENS 2.3% IN JAN-APRIL
The Russian ruble's real effective exchange rate appreciated 2.3%
against the basket of currencies of Russia's main trading partners in
January-April 2008, including 8.2% against the U.S. dollar and 0.5%
against the euro, the Central Bank said on its website citing
preliminary data.
*** RUSSIAN INT'L RESERVES GROW 5.4% TO $534.4 BLN IN APRIL - CB
Russia's international reserves grew $27.448 billion or 5.4% in
April to $534.422 billion from $506.974 billion, the Central Bank said
on its website.
This was the biggest growth since May 2007, when the reserves rose
by a record $34.09 billion.
The reserves grew $58.031 billion or 12.2% in January-May 2008.
They stood at $476.391 billion on January 1.
*** RUSSIA'S GAZPROM NEFT PLANNING $1-BLN SYNDICATED LOAN - SOURCES
Russia's Gazprom Neft (RTS: SIBN) is holding negotiations with
banks on a syndicated loan for $1 billion, sources in banking circles
told Interfax.
"A mid-term loan of three to five years is being discussed," one of
the sources said.
*** RUSSIA'S NORILSK NICKEL STARTS SYNDICATING $1.3-BLN LOAN
Russia's MMC Norilsk Nickel (RTS: GMKN) has begun syndicating a
loan for $1.3 billion, a source in banking circles told Interfax.
"The three-year loan will consist of three tranches. Tranche A,
which will be secured by exports, will be for $650 million and the
revolving tranche B for $500 million will both be raised at Libor + 85
basis points. An unsecured tranche for $150 million will be attracted at
Libor + 100 basis points," the source said.
*** ROSSELKHOZBANK TO BEGIN ROAD SHOW FOR $1-BLN EUROBOND ISSUE IN MID-
MAY
Russian Agricultural Bank (Rosselkhozbank, RSHB) plans to begin a
road show for a $1-billion Eurobond issue in mid-May, sources in banking
circles told Interfax.
ABN Amro, Citi and Goldman Sachs received the mandate to organize
the issue of seven-year bonds.
*** SEVERSTAL CLOSES DEAL TO PURCHASE SPARROWS POINT
Severstal (RTS: CHMF) has closed the deal to purchase the Sparrows
Point steel mill in the U.S. from ArcelorMittal, the Russian company
said in a statement.
The U.S. Justice Department and the Committee on Foreign Investment
earlier cleared the $810-million acquisition, the statement says.
*** RUSSIA'S LUKOIL TO FINALIZE $1-BLN SYNDICATED LOAN NEXT WEEK
Russia's Lukoil (RTS: LKOH) is planning to finalize a deal on a
$1-billion syndicated loan next week, a source in banking circles told
Interfax.
"The loan is already oversubscribed. The company could decide to
increase its size," the source said.
The loan will consist of two tranches. The three-year tranche will
be raised at Libor + 85 basis points and the five-year at Libor + 95
basis points.
*** EBRD BUYS ANOTHER 4.1% OF OGK-5 FROM ENEL FOR EUR 175 MLN
The European Bank for Reconstruction and Development (EBRD) has
increased its stake in Russia's OGK-5 (RTS: OGKE) wholesale generating
company to 5.2% after buying another 4.1% from the genco's controlling
shareholder Enel for EUR 175 million, the EBRD said in a press release.
*** GAZPROM TO RECEIVE PORTION OF SAKHALIN'S KIRIN BLOCK ON NO-BID BASIS
-SOURCE
Gazprom (RTS: GAZP) will receive rights to the Kirinskoye field,
part of the Kirin block under the Sakhalin-3 project, on a no-bid basis,
a source at one of the government agencies concerned told Interfax.
The decision was made at a government session held at the beginning
of the week, he said.
"Several promising areas have been identified at the Kirin block.
At one of them a gas field with no less than 100 billion cubic meters of
reserves was discovered. That is what will be transferred to Gazprom,"
the source said.
The field was included on the list of federal properties due to its
strategic importance for Russia's gas supply.
*** X5 RETAIL CLOSES SPO, RAISES MORE THAN $1 BLN
X5 Retail Group has closed a supplementary Global Depositary
Receipt (GDR) offering, raising the expected amount of just over $1
billion to go towards the acquisition of the Karusel hypermarket chain.
X5, Russia's biggest retailer which controls the Perekrestok and
Pyaterochka grocery chains, said in a statement that existing
shareholders, including the Alfa-Group with 48%, subscribed to 96.5% of
the GDR rights issue, buying shares at a heavily discounted $21.37 a
share for a total of $992.04 million.
The company then sold the remaining 1,684,704 GDR to investors at
$35 each for a total of $58.97 million in the rump offering; and, in
conjunction with the rump offering, a further 3,769,113 GDR held in
Treasury, also for $35 each or a total of $131.92 million.
The rights issue and the rump offering were worth a total of $1.026
billion.
*** MORDASHOV REJECTS OFFER TO BUY 10% TUI STAKE
Alexei Mordashov, the general director and chief beneficiary of
Severstal (RTS: CHMF), has rejected an offer for his 10% stake in German
travel concern TUI AG, made by the majority shareholder in the company,
John Frederiksen.
"We did not accept the offer," S-Group Capital Management Limited,
which represents Mordashov's interests, told Interfax. The rejection of
the offer is final. "Mordashov will not sell his stake in TUI," an
S-Group official said.
*** PEPSI FINALIZES PURCHASE OF RUSSIA'S SOBOL-AQUA
PR Beverages Limited, a joint venture between Pepsi Bottling Group
and PepsiCo in Russia, has finalized the purchase of Novosibirsk-based
Sobol-Aqua, which owns a beverages plant at which Pepsi has been
bottling its products since 2006.
The financial terms of the deal are not being disclosed, Pepsi said
in a statement.
Pepsi Bottling Group Russia and PepsiCo intend to double output at
Sobol-Aqua in the next one to two years and expand their business into
the eastern part of Russia. The plant will mainly produce the global
line of Pepsi brands, although the traditional Limonad and Dyushes
brands will also be retained.
*** CHERKIZOVO PRICES SHARES IN SPO AT $23.5
The board of directors of Group Cherkizovo have set the price of
shares in a secondary public offering (SPO) at $23.5 each, the company
said in a statement.
*** BALTIKA UPS NET PROFIT 2.2% TO 58.7 MLN EURO IN Q1
Net profit at Baltika Breweries (RTS: PKBA) increased 2.2% in the
first quarter of 2008 year-on-year to 58.7 million euro under
International Financial Reporting Standards , the company said in a
statement.
Revenue increased 13.3% to 463.1 million euro. EBITDA was up 2.1%
to 115.4 million euro. The EBITDA margin declined to 24.9% from 27.7%.
*** KYIV WANTS 5 YRS BEFORE EUROPEAN GAS PRICES IMPOSED
Ukraine wants five years to pass before European gas prices are
imposed and will suggest that 15-year contracts are signed at transit
and gas supply talks with Russia's Gazprom (RTS: GAZP).
"The government wants 15-year contracts," Oleh Dubyna, the Naftogaz
CEO, told reporters in Kyiv.
Dubyna said he'd like to see five years pass before European prices
are imposed for Ukraine, and for the 2008 price of $179.5 per thousand
cubic meters to be raised by a fixed amount in the meantime.
*** NAFTOGAZ TO STOP SELLING GAS TO INDEPENDENT TRADERS
Ukraine's Naftogaz will stop selling gas to traders and will sell
gas only via Gazprom Sales Ukraine, which is a subsidiary of Russia's
Gazprom (RTS: GAZP), and via regional gas utilities, Oleh Dubyna, the
Ukrainian state oil and gas company's chief executive, told reporters in
Kyiv.
"We don't need traders, because we have the regional [oblgaz] gas
companies," Dubyna said.
Naftogaz and Gazprom Sales Ukraine have already signed a contract
from May this year to May next year, he said.
POLITICS & SOCIETY
*** RUSSIAN GOVERNMENT RESIGNS
Viktor Zubkov on May 7 signed a decree under which the government
has resigned in accordance with Article 116 of the Constitution and
Article 35 of the Federal Constitutional Law on the Government, the
Cabinet of Ministers' press service has reported.
The government will carry on day-to-day functions at the request of
the president until a new Cabinet is appointed under Article 117 of the
Constitution.
*** MEDVEDEV NOMINATES PUTIN FOR PRIME MINISTER
Russian President Dmitry Medvedev has submitted Vladimir Putin's
candidacy to the State Duma to be confirmed as prime minister, the
president's press service told Interfax on Thursday.
The State Duma is expected to consider Putin's nomination for prime
minister on May 8.
*** PUTIN TO HOLD CONSULTATIONS WITH PARLIAMENTARY FACTION LEADERS
Vladimir Putin will hold consultations with the leaders of the
parliamentary factions and groups, given his nomination for prime
minister, the State Duma's press service has reported.
*** STATE DUMA TO CONSIDER PUTIN'S CANDIDACY FOR PM ON MAY 8
The Russian State Duma will consider Vladimir Putin's candidacy for
the post of prime minister on Thursday at noon, Moscow time, Speaker
Boris Gryzlov told reporters on Wednesday.
Russian President Dmitry Medvedev has already nominated Putin for
the post, said Gryzlov.
*** NO PLANS TO CLASSIFY STORCHAK CASE - LAWYER
The criminal case against Russian Deputy Finance Minister Sergei
Storchak will not be classified, Alexander Petrov, a lawyer for
Storchak, said.
"Lawyers signed written pledges not to divulge materials of the
investigation last year," Petrov told Interfax on Wednesday, commenting
on media reports alleging that the Investigative Committee of the
Russian Prosecutor General's Office wanted to classify the Storchak case
and citing as proof the fact that lawyers had been required to sign the
pledges.
"Signed gag orders do not prove that one wants to classify the
case," the lawyer said.
Storchak is accused of attempting to embezzle $43 of state
budgetary funds.
Ig ek
More...
|
