Russia 100527 Basic Political Developments

Business, Energy or Environmental regulations or discussions

Bloomberg: Dart Owns Stakes in Russian Phone Companies, Vedomosti Reports

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=am.P0GLYKCMA
By Maria Ermakova

May 27 (Bloomberg) -- U.S. investor Kenneth Dart owns “large minority stakes” in Russian phone companies, Vedomosti reported, citing Evgeny Yurchenko, chief executive officer of OAO Svyazinvest, the state-run holding company for regional fixed-line operators.

Dart supports the government’s plan to merge the operators with OAO Rostelecom, the dominant long-distance provider, the Moscow-based newspaper said today.

To contact the reporter on this story: Maria Ermakova at [e-mail]

Last Updated: May 27, 2010 00:46 EDT

Reuters: Russian billionaire to sell Uralkali stake: report

http://www.reuters.com/article/idUSTRE64Q11120100527
1:13am EDT

MOSCOW (Reuters) - The main shareholder of Russia's Uralkali , billionaire Dmitry Rybolovlev, is looking to sell a controlling stake in the potash miner, Kommersant business daily reported on Thursday, citing sources.

Rybolovelv -- ranked 10th richest man in Russia by Forbes magazine with his fortune of $8.6 billion -- is in talks to sell the stake at above current market value, a market source told Kommersant.

The stake has been offered to several Russian billionaires.

These include Polyus Gold
co-owners Suleiman Kerimov and Mikhail Prokhorov, the country's richest man Vladimir Lisin. The majority owner of telecoms-to-oil conglomerate Sistema , Vladimir Evtushenkov, and Norilsk Nickel shareholder, Vladimir Potanin, were also approached, another source told the business daily.

The source highlighted Kerimov and Potanin as top contenders, although Potanin's investment vehicle Interros said there were no plans to buy Uralkali.

Prokhrov's representative told Kommersant there had been talks over buying a stake in Uralkali, but he decided against the deal. The other businessmen could not be reached or declined to comment.

Uralkali, which posted a nearly 60 percent drop in 2009 net profit, was valued at $6.86 billion in London on Wednesday.

(Writing by Toni Vorobyova; Editing by Valerie Lee)

Alfa: Uralkali up for sale

http://www.businessneweurope.eu/dispatch_text11737

Alfa Bank

May 27, 2010

Kommersant reports today that Dmitry Rybolovlev, the controlling shareholder of Uralkali, intends to sell his controlling stake. He has been in negotiations for several months with various Russian businessmen, including V. Evtushenkov (Sistema), V. Lisin (NLMK), S. Kerimov (Nafte Moscow), V. Potanin (Interros) and M.Prokhorov. Kommersant reports that Kerimov and Potanin are the main contenders.

Mr. Rybolovlevs 66% stake in Uralkali is estimated at $4.53 bln as of yesterdays close. On the one hand, Rybolovlevs sale of Uralkali when potash prices are at three-year lows and potash assets are relatively cheap is not a good sign. In theory, it could indicate that the companys current owner does not regard the prospects of the business as particularly attractive. On the other hand, large businesses in Russia are often sold for political rather than economic reasons.

Nevertheless, we regard the news as POSITIVE for the stock, as we believe the deal could take place at prices higher than the current one, which is 8% below the 2007 SPO price. According to Russian law, the buyer will have to make a mandatory offer to minority shareholders to buy out their shares if the deal actually takes place. However, we believe this is unlikely, as it would require an additional ~$2.33 bln, and the deal would be structured as the sale of Rybolovlevs holding company, which has control of Uralkali, rather than a direct sale of Uralkali shares.

Georgy Ivanin
Updated Thursday, May 27, 2010 1:18 pm 
TWN, The Korea Herald/Asia News Network

Cina Post: Hyundai set to produce subcompact cars in Russia from next January

http://www.chinapost.com.tw/business/company-focus/2010/05/27/258317/Hyundai-set.htm
SEOUL -- Hyundai Motor Co.'s plant in Russia will produce subcompact cars beginning in January, sources said. The carmaker plans to complete the construction of the US$413 million plant near St. Petersburg in September or October. It will manufacture its Verna model altered for the Russian market, in which the company is the third largest imported auto brand after Ford and Chevrolet.

The Russian version will be fitted with a 1.5-liter engine, while the Verna is available with either a 1.4- or a 1.6-liter engine in Korea and other markets.

Ground was broken for the factory in June 2008. The plant is expected to produce 100,000 units per year when it goes fully operational in the second half of 2011.

Hyundai has yet to decide which other models, if any, will be made at the plant, a company official said.

European Investor: EVRAZ REPAYS VNESHECONOMBANK LOAN USING 5-YEAR CREDIT FACILITY FROM GAZPROMBANK

http://europeaninvestor.com/SiteFiles/company/company.asp?GUID=3B4AC46A565C384DB0027B67AAB9D0D6&PressID=35694&Customer=1&CompanyCode=ru-evr&MenuItem=91&wtLang=English

27 May 2010- Evraz Group (LSE: EVR) ("Evraz" or the "Company") announces that it has fully repaid a US$1,007 million loan to Russia's State Corporation Bank for Development and Foreign Economic Affairs "Vnesheconombank" (VEB). This transaction was announced at the time of the release of the 2009 Full Year financial results in March 2010 and is in line with the Company's refinancing plan to term out the Group's short-term debt.

The VEB loan was due to mature in five quarterly installments of US$201.3 million each, starting from May 2010. For the purpose of the VEB loan repayment, Evraz utilised a US$950 million loan from Gazprombank, which will mature in May 2015.