Moscow press review for August 2, 2011
MOSCOW. Aug 2 (Interfax) - The following is a digest of Moscow newspapers published on August 2. Interfax does not accept liability for information in these stories.
VEDOMOSTI
Gazprom is again at odds with junior partner in Nortgaz Farkhad Akhmedov and the problems were reported to Gazprom CEO Alexei Miller by his deputy Valery Golubev in June. Gazprom's risk is in that it has committed itself, by agreement with the Nortgaz shareholders "under reasonable conditions," to guarantee the independent producer's normal work. However, REDI, controlled by Akhmedov, has questions, Golubev said. In 2011 Gazprom launched condensate extraction at Zapolyarnoye field and is refining the gas at its subsidiary, the Surgut Condensate Stabilization Plant. But this plant has an agreement with Nortgaz, signed in 2008, to process its condensate under tolling arrangements. The plant's capacities may prove too small to deal with two clients both in 2011 and in 2012. (Whose Condensate More Important?)
Siemens and Alexei Mordashov's Highstat Ltd. last week signed a deal for the buyout of the last 25% plus one share in Power Machines, owned by the German concern. The worth of the deal has not been disclosed. The deal will be finalized within the coming few months and it must be okayed by the Federal Anti-Monopoly Service, a Siemens insider said. After it has been finalized Mordashov's stake in Power Machines will increase to 95.3%. Concurrently, Siemens and Power Machines signed an accord to set up a joint venture in Russia to make and service large gas turbines. (Siemens will Get What It Wants, see also Kommersant. Page 9. Siemens's Power Machines Deal).
Sberbank President German Gref has agreed to join the supervisory board of the Strategic Initiatives Agency, an insider in the government office and a Sberbank employee told Vedomosti. Gref has received the invitation to join the supervisory board, and it will be discussed in detail after the agency has been formed and the council's functions have been defined, said a source who took part in launching the project. Gref has been invited not only because his bank is a serious resource in dealing with medium businesses, but also because he has launched a system of appraising professional competence in his bank. (Gref Will Help Putin).
The government has negotiated the sale at an open auction of 75% minus two shares in the First Cargo Company (PGK) in a single lot, and it issued the relevant directive on July 28, Russian Railways reported on Monday. The starting price will be defined based on a report by an independent appraiser no later than 30 days before the auction is announced. The number of bidders is large enough. The Federal Anti-Monopoly Service (FAS) has received six bids from four investors, FAS said on Monday, and all of them have the 15,000 vans at their disposal, cited in the directive. They are the Independent Transport Company, which is part of Vladimir Lisin's UCLH holding company, Globaltrans structures, companies of Neftetransservis, connected with the Aminov brothers (according to Interfax which did not cite the sources), and also Transoil, controlled by Gennady Timchenko. (Russian Railways' Main Deal, see also Kommersant. Page 7. First Cargo Company to be Offered for Inside Auction).
The news in January that Rusagro is preparing a second try to hold an IPO and hopes to do so in London, raised many eyebrows. The group refused to IPO at the last moment in spring 2010 over the market's volatility. It seemed after the 2010 drought, when some farms in Central Russia and the Volga region lost up to 80% of the crop, that exchanges would remain closed for Russian agri-industrial companies for long. But Rusagro not only carried out the placement, but also became the largest public agri-industrial holding company. Rusagro General Director Maxim Basov talks with Vedomosti about what questions Western investors were asking during the road show, in what way the company hopes to increase the revenue almost 1.5 times this year and whether it has been invited to join the Russian Popular Front. (Grain Stock Sufficient, No More Needed - Basov.)
KOMMERSANT
After Italy's Edison, which has secured concessions from Gazprom on gas prices after it filed a lawsuit, Europe's major consumer E.ON turned to an arbitration court. The concern, which accounts for almost 50% of Gazprom's shipments to Germany, sued the Russian monopoly after 18 months of futile talks on a revision of the gas price formula. (Page 9. Consumers Waiting for Gazprom in Court, see also Vedomosti. Edison's Example.)
Lukoil will not have to shut down its oil refinery in Bulgaria's Burgas. The Sofia administrative court suspended the decision to revoke the license from the oil refinery at the oil company's request. Lukoil was to resume the shipment of petroleum products from the oil refinery on Monday evening and it plans to regain its full capacity before the end of the week. But Bulgaria's claims to Lukoil have not been settled fully and the litigation will continue. (Page 9. Lukoil Wins License Back).
