Page 111 - RusRPTMay19

Ammonia fertiliser plant in the Tatarstan Republic, Kommersant daily reported citing unnamed sources close to the deal. Reportedly Lukoil is up against Russia's largest fertiliser EuroChem for control of Ammonia that could cost up to $1bn. Ammonia plant was built in 2016 at the Novomendeleevsky chemical plant and is owned by Tatammoniy (52.9%), Vneshekonombank development bank (VEB.RF 22.8%) and Investment and Venture Fund of the Republic of Tatarstan (24.3%). According to Kommersant, Ammonia currently owes RUB100bn ($1.5bn) to VEB.
Transneft estimates that its buyback will reach a maximum of RUB8bn/a ($120mn/a) over the next three years, but not more than 3.5% of its annual capital expenses, Interfax reports, citing unnamed sources based on a letter from the Ministry of Finance to the Ministry for Economic Development. According to the newswire, MinFin has suggested approving the buyback only if the company fixes a 50% of IFRS net income payout in its dividend policy. Separately, NCSP reported the sale of 99.9968% in Novorossiysk grain terminal to VTB Group for RUB35.5bn ($550mn) subject to amendments upon the working capital alterations, according to Interfax.
Russian billionaire Mikhail Gutseriev acquired a controlling stake in the Afipsky oil refinery in the southern Krasnodar region from the Deputy CEO of UralSib Bank Yevgeny Kogan, Kommersant business daily reported on April 29 citing unnamed sources. Kogan, according to the daily, is the son of the owner of UralSib Bank Vladimir Kogan, the former director of the Federal Agency for Construction and Housing and Utilities. Since 2018 Gutseriev's Safmar Group has been making headlines due to the mega-merger of its electronics retail assets, the consolidation of oil assets, and reported interest in children’s' goods retailer Detsky Mir. Oil Technologies, part of Gutseriev’s financial group Safmar, now reportedly bought Afipsky for $20mn, with the price being brought down from the original $50mn negotiated between Safmar and Russia's largest bank Sberbank, the refinery’s main creditor. Safmar could further consolidate the holding in the refinery by acquiring a stake from oil company New Stream Group, while intending to invest RUB100bn in capacity upgrades in the next five years. The anchor oil asset of Gutseriev Russneft doubled its IFRS net profit in 2018 to RUB14.8bn ($228mn), the company said on March 27. Russneft is one of Russia's six largest crude oil producers with assets in key extraction regions such as West and Central Siberia, Volga-Urals regions, as well as Azerbaijan. The company's Revenues increased by 38% to RUB178bn, with Ebitda up by 62% to RUB48.6bn, attributed to positive market conditions, changing extraction mix, and introduction of new technologies. Gutseriev, 58, is worth an estimated $6.7bn and raked in $500mn from the successful IPO of Russneft in November 2016, which is the source of most of his wealth.
9.2.2 Automotive corporate news
Sales of Lada cars in Russia in March increased by 10.1% to 33,821 cars, according to AvtoVAZ. In total, 82 363 Lada vehicles were sold in Russia in the first three months of the year, which is 4.1% more than in the same period of 2018. According to the company, its market share continues to grow and at the end of March was 21%. In February, sales of Lada cars decreased for the first time in 2.5 years: 27,011 cars were sold, which is 1.4% lower than in February 2018. In March, among all AvtoVAZ vehicles, Lada Vesta cars were the most popular with customers, the company said. A record quantity of them was sold - 12,850, compared to March 2018, sales amounted to 40%. Lada
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