Russia 110328 Basic Political Developments

Business, Energy or Environmental regulations or discussions

Rosneft, Polymetal, Lukoil, Cherkizovo: Russian Equity Preview

http://www.bloomberg.com/news/2011-03-27/rosneft-polymetal-lukoil-cherkizovo-russian-equity-preview.html
By Yuliya Fedorinova - Mar 28, 2011 4:00 AM GMT+0200

The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close.

The 30-stock Micex Index rose 0.67 percent to 1,807.46. The dollar-denominated RTS Index was up 0.67 percent to 2,041.49.

OAO Rosneft (ROSN RX): BP Plc may have to spend $15 billion to buy out its partners in TNK-BP after they blocked its attempted share swap with Rosneft, the Sunday Times reported, citing unnamed analysts and bankers. Russia’s largest oil producer fell 0.29 percent to 267.86 rubles.

OAO Polymetal (PMTL RX): Gold futures fell on bets that the rally to a record was overdone. Silver also declined as the dollar rose against a basket of major currencies and U.S. equities gained. Polymetal, gold and silver producer, gain 0.19 percent to 540 rubles.

OAO Cherkizovo Group (GCHE RX): Russia’s pork production may fall to 1.91 million metric tons in 2011 from 1.92 million last year, a unit of the U.S. Department of Agriculture said. Beef output may drop to 1.4 million tons from 1.435 million in 2010, the USDA’s Foreign Agricultural Service said. Cherkizovo, Russia’s largest meat producer added 0.62 percent to 825 rubles.

OAO Lukoil (LKOH RX): Oil prices may fall on speculation that a civil war that’s slashed Libyan crude output won’t reduce supplies from other countries in the region, a Bloomberg News survey showed. Lukoil, Russia’s second-largest oil producer, fell 0.09 percent to 2,044.30 rubles.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at [e-mail]

To contact the editor responsible for this story:

Summa Capital takes over Czech port builder

http://www.rbcnews.com/free/20110328112831.shtml

      RBC, 28.03.2011, Moscow 11:28:31.Summa Capital, a co-owner of Russia's Novorossiysk Commercial Seaport, has purchased a 61% stake in Czech engineering company OKZ Holding, RBC Daily reported today, citing Sergey Velichko CEO of Summa Capital's subsidiary Stroynovatsiya. OKZ Holding specializes in the construction of port facilities, among other things.

      "As a result of this acquisition, we plan to expand our turnkey engineering and construction projects and our footprint in the markets of Russia, the EU and Middle East," Velichko said. Specifically, Stroynovatsiya expects to strike contracts in the EU where an increased demand for oil and natural gas storage facilities is expected as result of plans to boost oil and gas reserves.

      Stroynovatsiya and OKZ intend to take part in tenders to build storage facilities in Spain, the Netherlands, Belgium and other countries.

Federal Grid Company gains LSE listing

http://www.rbcnews.com/free/20110328122552.shtml

      RBC, 28.03.2011, London 12:25:52.Russia's Federal Grid Company of Unified Energy System (FGC UES) has listed its GDRs on the main market of the London Stock Exchange (LSE), the national power grid operator said in a statement today.

      Trading in GDRs got underway today. One GDR represents 500 ordinary shares.

Russia's Mosenergo posts higher 2010 profit, revenue

http://www.reuters.com/article/2011/03/28/mosenergo-idUSLDE72R0B220110328
3:25am EDT

MOSCOW, March 28 (Reuters) - Moscow's electricity provider Mosenergo (MSNG.MM: Quote, Profile, Research, Stock Buzz) posted 2010 profit more than 5 times higher than the previous year at 8.7 billion roubles ($306.6 million), while revenue climbed 29 percent.

The company, controlled by gas monopoly Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz), said in a statement its growth could be put down to higher power demand as Russia's capital recovered from the financial crisis.

Its shares were up 1.5 percent at 0720 GMT, outperforming a broadly flat overall market.

(Reporting by Anastasia Lyrchikova, Writing by John Bowker, Editing by Andrey Ostroukh)
Shenhua Says Russia Talks Going Smoothly; Sees Coal Opportunity

http://www.bloomberg.com/news/2011-03-28/east-europe-day-ahead-serbia-may-cancel-telekom-srbija-sale.html

By Balazs Penz - Mar 28, 2011 8:20 AM GMT+0200

China Shenhua Energy Co. may enter coal projects with Russia, the company’s chairman, Zhang Xiwu, said at a media briefing in Hong Kong today. Talks are going “smoothly,” he said. Shenhua will start coal power plants in Indonesia this year and operations in Australia will start earlier than planned, he said. Capital expenditures this year will rise to about 36.2 billion yuan, Zhang said.

To contact the editor responsible for this story: Balazs Penz in Budapest at [e-mail]

Russia's RusAl aluminum giant says may set up JV for Asia-Pacific projects

http://en.rian.ru/business/20110328/163243075.html

Russia's RusAl, the world's largest aluminum producer, and China's Xinshan Aluminum Industry Demonstration Park may set up a joint venture to produce bauxites, aluminum and alumina in Asia and the Pacific, RusAl said on Monday.

The document envisages the export of RusAl's technologies for alumina, aluminum and its alloys output, the designing and construction of alumina, aluminum and bauxite smelters in China and joint venture projects for the geological study and mining of bauxites and bauxite-alumina complex construction in the Asia-Pacific Region countries, the company said in a statement.

Xinshan Park's demand for bauxites may reach 2 million tons per year.

"With the unprecedented pace of urbanization, China is demonstrating a steady growth in demand for aluminum. It is expected that the 2011 aluminum consumption will grow by 12% to reach 18.5 million tons, which will require both increased imports and domestic production," RusAl First Deputy CEO Vladislav Solovyev was quoted in the company's statement as saying.

MOSCOW, March 28 (RIA Novosti)

Norilsk Nickel May Buy TKB Capital from VTB, Vedomosti Reports

http://www.bloomberg.com/news/2011-03-28/east-europe-day-ahead-serbia-may-cancel-telekom-srbija-sale.html

By Balazs Penz - Mar 28, 2011 8:20 AM GMT+0200

OAO GMK Norilsk Nickel’s pension fund is seeking to buy TKB Capital from its new owner, VTB Group, Vedomosti said, citing two people who read a letter from the fund to the state- controlled lender.

To contact the editor responsible for this story: Balazs Penz in Budapest at [e-mail]