Moscow press review for August 26, 2013
MOSCOW. Aug 26 (Interfax) - The following is a digest of Moscow newspapers published on August 26. Interfax does not accept liability for information in these stories.
POLITICS & ECONOMICS
Russia could retaliate against Ukraine for its integration with the European Union by restricting imports of agricultural goods and steel products. Kyiv might be warned on Monday, when the two countries' prime ministers will hold talks in Moscow (Vedomosti, p. 4).
Russian Prime Minister Dmitry Medvedev has approved a federal program for strengthening the national identity and ethnic and cultural development that will cost almost 6.8 billion rubles in 2014-2020, including 4.5 billion rubles from the federal budget (Kommersant, p. 2).
Surveys of the mood and expectations in industry show a surge in demand and sales in August, as well as deterioration of plans for investment and employment in the next quarter. In any case, managers at most companies are satisfied with the current state of affairs, the Higher School of Economics believes (Kommersant, p. 3).
METALS & MINING
Russian potash giant Uralkali, which recently shocked the market by ending its cartel with Belarus, is in talks to buy fertilizer distributors in key markets. This is part of the company's new strategy to sell as much potash as possible at any price (Vedomosti, p. 1).
State Duma deputy Zelimkhan Mutsoyev, who is disposing of his assets in order to remain in parliament, has sold his 18.5% stake in Polyus Gold to his brother Amirkhan Mori. Analysts said the deal is unlikely to alter the leading Russian gold miner's strategy (Kommersant, p. 7; Vedomosti, p. 12).
BANKING, FINANCE & INSURANCE
Businessman Magomed Bilalov has reportedly sold all his businesses in Russia, including National Business Development Bank (NBB). With the change of ownership, the bank has also changed its strategy and is now attracting retail clients with very high interest rates. NBB needs to pay off 580 million rubles in debt (Vedomosti, p. 10).
The Federal Consumer Rights Protection Service is urging banks to forgive the debts of borrowers who have suffered from the floods in Russia's Far East. The number of flood victims in the Far East has already topped 50,000 (Vedomosti, p. 11).
A bill being drafted by Russia's Finance Ministry will require nongovernmental pension funds to become joint-stock companies, which should make their ownership structure more transparent. But market players are worried about financial problems for major companies consolidating captive pension funds and major corporate disputes among fund owners (Kommersant, p. 7).
RETAIL & CONSUMER MARKET
The Russian government wants to save money on drugs. Radical proposals floated in a report on the effectiveness of budget spending on drugs include reregistering all drugs, limiting government procurements only to vital and the most important drugs, or stopping payment for drugs that do not work (Vedomosti, p. 1).
TELECOMMUNICATIONS, MEDIA & TECHNOLOGY
The Russian Direct Investment Fund (RDIF), the EBRD and Finland's Capman are investing $100 million in Maykor, the leading player on Russia's IT outsourcing market. The RDIF, making its first investment in the IT sector, will contribute half this amount (Vedomosti, p. 16).
AUTOMOTIVE & ENGINEERING
Russian tank and railcar maker Uralvagonzavod (UVZ) is taking the first major step toward becoming a diversified group. The rail freight operator controlled by the state company is buying coal miner Zarechnaya, along with engineering plants in Russia and Germany and a port in Latvia (Kommersant, p. 1).
The business program for the MAKS-2013 international air show that opens outside Moscow on Monday does not envision the signing of any big contracts. Participants will formalize existing agreements and expand cooperation. However, analysts expect the total amount of contracts to be no less than the $10 billion signed at MAKS-2011 and that they will include defense contracts (Kommersant, p. 9).
Interview: Jean-Paul Herteman, CEO of Safran S.A. (Vedomosti, p. ).
