Page 125 - RusRPTNov18

Russia's otherwise compromised privatisation effort, but now has effectively become a state asset. Previously Transneft reportedly turned down a deal with Summa Group to take over control in NSCP. Transneft already holds 10.5% in NCSP indirectly, with another 20% held by the state property agency Rosimushestvo. Controlling 50.1% stake was held by Novoport Holding, a 50/50 joint venture between Transneft and Summa. Now Transneft acquired 25% stake in Novoport, consolidating a total of 60.62% in NSCP. Oil pipeline monopoly said it will finance the $750mn deal with borrowed funds, and Kommersant reminds that earlier this year Transneft opened a large credit line with state-controlled Sberbank.
The largest creditor of Russian container operator Transcontainer VTB Bank could get a 25.07% in the company from Fesco, to later re-sell the stake to strategic investors Roman Abramovich and Vladimir Lisin, RBC business portal reported on October 16 citing sources in Fesco. Maritime transportation major Fesco controls Far East Sea Port terminal. Its largest shareholder with 32.5% is Summa Group of jailed Kremlin-connected oligarch and head of Summa Ziyavudin Magomedov. Since Magomedov's arrest in March, Summa has been under pressure to sel.
Shares of Russia's largest port and stevedore group Novorossiysk Commercial Sea Port ( NCSP ) jumped by 7% on October 9 on Transneft buyout talks pushing on Moscow Exchange pushing the capitalisation to RUB133bn. The investors reacted to possible minority shareholder buyout offer by the new controlling shareholder Transneft. This week state oil pipeline monopoly Transneft consolidated its stake in NCSP to over 60% , acquiring 25% in joint venture with Summa Group of jailed Kremlin-connected oligarch Ziyavudin Magomedov .
One of Russia's largest electronics retailers Svyaznoy, with a network of 1,000 stores in 500 Russian cities, will be able to send parcels and packages , Vedomosti daily reported on October 16 citing the VP for Sales of the company David Borzilov. Previously in May Russian mobile major MegaFon , that previously owned another electronics retailer Euroset and SLV Group controlling Svyaznoy, completed the merge of Svyaznoy and Euroset . With about 500 new store openings planned in the next 18 months, the total store count of the merged retailer will thus reach over 5,500 stores. By the end of 2019 mailing services will be available in most of the Svyaznoy/Euroset stores, according to Borzilov, with additional services such as door-to-door delivery to be developed. Tariffs named by Borzilov are comparable to those of the Russian Post, according to Vedomosti daily. The service could be attractive not only for private senders but also for small online shops and other e-commerce outlets, Borzilov argues. Vedomosti reminds that Euroset Logistika is running a logistics and shipping operations for corporate clients and manages deliveries of such online retailers as Ozon, Lamoda, Avon, and others. The development of the delivery infrastructure coincides with growing digital ambitions of MegaFon. In 2018 the company said it will run a share buyback, delist and cancel dividends as it prepares to complete its transformation "into a digital business in the heart of the new digital ecosystem in Russia." Most recently Mail.ru internet major, MegaFon, and the Russian Direct Investment Fund (RDIF) announced a partnership with Chinese online retailer Alibaba .
The Federal Anti-Monopoly Service (FAS) has opened a case against Russia’s two largest manufacturers of railway wheels —Vyksa Steel
125 RUSSIA Country Report November 2018 www.intellinews.com