Russia to produce 80-85 mln tonnes of grains

Russia to produce 80-85 mln tonnes of grains

While presenting his report at the Turkish Congress & Exhibition: wheat, licensed warehouse and futures, Pavel Skurikhin, President of the National Grain Producers and Traders Union of Russia, informed on prospects of the grain sowing campaign in the Russian Federation in 2011.

In particular, according to the expert, wheat sowing areas for the harvest-2011 will total 26.6 mln ha, including 12.6 mln ha of winter wheat areas, and nearly 14 mln ha of spring wheat. The National Grain Union forecasts that barley sowing areas will reach the level of 8.1 mln ha, rye – 2 mln ha.

Russia needs to harvest 80-85 mln tonnes of grains in order to keep the required grain balance in the new season, and to date the country has good chances to reach such figures, but the planned indices heavily depend on results of the spring sowing campaign.

Besides, P.Skurikhin informed on the main target of the Union activity in the nearest future, which contains forming of the real plan-forecast of grain production in the nearest two seasons.

Business, Energy or Environmental regulations or discussions

TNK-BP, Rosneft, Gazprom, Polyus Gold May Move: Russia Preview

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

The 30-stock Micex Index (INDEXCF) dropped 0.7 percent to 1,719.95.

OAO TNK-BP (TNBP RX) and OAO Rosneft (ROSN RX): The 50-50 venture between BP Plc and four Russian billionaires failed to replace BP in an alliance with Rosneft and said it would wait for arbitration on its dispute with the U.K. company. The shares in TNK-BP fell 1.8 percent to 84.92 rubles. Rosneft, Russia’s biggest producer of crude, fell 0.1 percent in Moscow to 253.17 rubles.

OAO Gazprom (GAZP RX): Russian Prime Minister Vladimir Putin’s government asked Gazprom to consider increasing liquefied natural gas shipments to Japan after an earthquake shut some of the Asian country’s nuclear power plants, curtailing electricity supplies. The largest gas producer in the world’s shares rose 0.5 percent to 209.01 rubles.

OAO Polyus Gold (PLZL RX): Gold may gain as concern that unrest in North Africa and the Middle East and Europe’s debt crisis boost the metal’s appeal as an alternative investment, a Bloomberg survey found. Shares in the country’s biggest gold producer fell 1.9 percent to 1,664.1 rubles.

To contact the reporter on this story: Henry Meyer in Moscow at hmeyer4@bloomberg.net

To contact the editor responsible for this story: Willy Morris at wmorris@bloomberg.net

http://www.rbcnews.com/free/20110314105819.shtml

      RBC, 14.03.2011, Moscow 10:58:19.Russia's iron ore holding Metalloinvest and aluminum giant UC Rusal have agreed on joint actions aimed at developing metals and mining company Norilsk Nickel, a representative of Metalloinvest's controlling shareholder Alisher Usmanov told RBC today.

      Metalloinvest is committed to its policy of improving the efficiency of Norilsk Nickel's management in the interests of all shareholders rather than just one of them, the representative said. In addition, Metalloinvest pursues the strategic goal of merging Norilsk Nickel along with other metals companies into a holding that will mine iron ore in addition to producing non-ferrous metals, the representative added.

      The holding expects its executive Farhad Moshiri to be elected to the board of directors of Norilsk Nickel, the representative went on to say. Metalloinvest owns about 4 percent, UC Rusal owns 25 percent, Vladimir Potanin's Interros owns about 30 percent, and oil trader Trafigura Beheer BV holds around 8 percent in Norilsk Nickel.

Usmanov Backs Deripaska in Norilsk Dispute, Kommersant Reports

http://www.bloomberg.com/news/2011-03-14/east-europe-today-troika-purchase-moves-dealmaking-to-stake.html

Russian billionaire Alisher Usmanov supports Oleg Deripaska’s United Co. Rusal in its dispute over the management of OAO Norilsk Nickel, Kommersant reported, citing an unidentified Usmanov representative.

To contact the editor responsible for this story: Douglas Lytle in Prague 1 at dlytle@bloomberg.net

Usmanov Says Metalloinvest to Buy Norilsk Shares on Open Market

http://www.bloomberg.com/news/2011-03-14/east-europe-today-troika-purchase-moves-dealmaking-to-stake.html

Russian billionaire Alisher Usmanov said his Metalloinvest holding company plans to buy shares in OAO GMK Norilsk Nickel via the stock market as he seeks a merger of the country’s biggest metals companies.

To contact the editor responsible for this story: Douglas Lytle in Prague 1 at dlytle@bloomberg.net

Sberbank Buying Troika Moves Dealmaking to State: Russia Credit

http://www.bloomberg.com/news/2011-03-14/east-europe-today-troika-purchase-moves-dealmaking-to-stake.html

Russia is tightening control over capital markets as Prime Minister Vladimir Putin’s government embarks on its biggest asset-sale program since the 1990s.

To contact the editor responsible for this story: Douglas Lytle in Prague 1 at dlytle@bloomberg.net

Sberbank RAS net profit more than doubles in January-February

http://www.rbcnews.com/free/20110314120121.shtml

      RBC, 14.03.2011, Moscow 12:01:21.Sberbank's RAS net profit more than doubled year-on-year to RUB 52.8bn (approx. USD 1.8bn) in January-February, the bank announced today.

Russian Green Groups to Protest Firm’s H.K. Listing, SCMP Says

http://www.bloomberg.com/news/2011-03-14/east-europe-today-troika-purchase-moves-dealmaking-to-stake.html

Russian environmental groups including Greenpeace Russia will present a petition to the Hong Kong stock exchange today calling on it to block the planned listing in the city of EuroSibEnergo, the South China Morning Post reported, citing an official at Rivers Without Borders.

To contact the editor responsible for this story: Douglas Lytle in Prague 1 at dlytle@bloomberg.net

Evroset having second thoughts on IPO plans

http://www.bne.eu/dispatch_text14455

bne
March 14, 2011

Evroset is having second thoughts on plans to seek equity funding this year following the series of disastrous IPO attempts by Russian companies last month, reports Reuters.

The mobile phone retailer said on Friday that it will still consider a plan to float in London in 2011, but added that it is still looking at other fund-raising options. The company, part-owned by Vimpelcom, said last year that - expecting the market to return to pre-crisis levels at some point - it planned to list in 2011.

Finance director Dmitry Milshtein said in October that 30% of the stock would be offered to the market in either spring or autumn. By late January, the company had picked banks to organise the listing, sources told Reuters.

However, following the failed floats of the likes of KOKS, ChelPipe and Nord Gold in February, the company appears to be having second thoughts. "Evroset continues to look into various strategic possibilities for the company's growth and development this year, including the possible IPO," the company said. It did not name the other development strategies it is looking at.

It's not an easy decision. On the one hand, Evroset has many advantages over the failed attempts to list by commodities-facing companies earlier in the year. Investors have illustrated over the last few months that they're ready to pay significantly higher prices for exposure to the Russian consumer than they are for the busy sectors exposed to global commodities markets.

On the other, the sale of a 10% stake in state bank VTB was also a significant distraction for investors looking at growing Russian exposure in February, and with a $50bn privatization plan ready to roll over the next five years, companies hoping to take advantage of erratic market sentiment will also need luck to avoid coming up against other sales from the state.