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Article Excerpt
IN BRIEF
Editor's Choice
*** The world's largest aluminium producer UC RUSAL this week announced that it is proposing intensive negotiations with its foreign bank creditor to restructure debt amounting to $7.4 billion. Among the various possible options for restructuring, a proposal from the Russian company is being considered in which the payment on main debt is moved ahead by up to seven years from the expiry moment of an earlier moratorium agreement. However, western creditors are believed to be interested in a shorter term of payment and support RUSAL moving its payment term ahead by up to two years.
*** RUSAL, the world's largest aluminum and alumina producer, has formally moved ahead of Interros Holding President Vladimir Potanin as the largest shareholder in MMC Norilsk Nickel, according to materials Potanin sent to the U.S. Securities and Exchange Commission.
As of April 17, Potanin was the beneficiary of 25% plus one share in Norilsk Nickel, while Oleg Deripaska's UC RUSAL owned 25% plus two shares.
*** The global financial crisis has meant that Russia's 100 richest people lost a combined total of $380 billion in wealth last year, reducing their collective net worth to $142 billion, Forbes magazine said in a press release this week. Only 32 of the richest 100 remain billionaires, with Mikhail Prokhorov, the president of Onexim group, was the richest Russian with $9.5 billion and Roman Abramovich, the main owner of Millhouse had $8.5 billion. Oleg Deripaska, who led the list of Russian billionaires last year, dropped to 10th place, scoring the biggest loss in absolute terms among all Russian billionaires.
*** Russian titanium producer VSMPO-Avisma and Airbus this week signed a contract on supplies of titanium products. Under the contract, VSMPO-Avisma will supply titanium to Airbus and other divisions of the European Aeronautic Defence and Space Company (EADS) for the period until 2020. The contract includes supplies of flat and round roll from titanium alloys as well as stamping products that will be used in the production of all types of Airbus aircraft, including the new A350 XWB. Russian Prime Minister Vladimir Putin said VSMPO will now satisfy almost 60% of Airbus' titanium demands.
TOP STORIES
RUSAL proposes moving debt payment ahead by 7 yrs to foreign banks
MOSCOW. (Interfax) - United Company Russian Aluminum (UC RUSAL) is proposing intensive negotiations with its foreign bank creditor to restructure debt coming to $7.4 billion.
A source in banking circles told Interfax that, among the various possible options for debt restructuring, a proposal from the Russian company is being considered in which the payment on main debt is moved ahead by up to seven years from the expiry moment of an earlier moratorium agreement. An additional source said that UC RUSAL is proposing a reschedule of its debt payments by up to seven to ten years.
However, western creditors are interested in a shorter term of payment and support RUSAL moving its payment term ahead by up to two years.
The source said that this issue is one of the main points of discussion at present.
RUSAL told Interfax that it was in discussion with banks concerning the terms for its long-term debt structure. However, the company said that it was too soon to provide any further details on this issue.
It was earlier reported that RUSAL had plans to put off the payment of its man debt to foreign banks by up to two years from the from the expiry moment of a moratorium agreement that has been signed by more than 90% of creditors, which took effect on March 11. RUSAL has put off the payment of principle debt slated for the next three months.
UC RUSAL's total debt comes to $16.8 billion.
The company's main Russian creditors are Gazprombank, Sberbank and VTB. The aluminum giant's individual debt to each of these banks comes to $600 million-$700 million. In addition, the company owes Alfa-Bank around $90 million.
However, Alfa-Bank has proved to be one of the more difficult creditors for the company and has held the sternest position out of all the banks. Alfa-Bank has pursued a return on the debt owed through court.
TOP STORIES
Russian billionaires lost $380 bln last year - Forbes
MOSCOW. (Interfax) - Russia's 100 richest people lost a combined total of $380 billion in wealth last year, reducing their collective net worth to $142 billion, Forbes magazine said in a press release.
None of the "Golden 100" added to their fortunes last year. Only 32 of them remain billionaires. Forbes reported a total of 110 Russian billionaires last year.
Mikhail Prokhorov, the president of Onexim group, was the richest Russian with $9.5 billion. Roman Abramovich, the main owner of Millhouse, had $8.5 billion and Lukoil President Vagit Alekperov had $7.8 billion.
Oleg Deripaska, who led the list of Russian billionaires last year, dropped to 10th place this year. Deripaska saw his fortune drop to $3.5 billion from $25.1 billion, the biggest loss in absolute terms among all Russian billionaires.
The 100 richest Russians this year include 23 people who were not on the list in 2008, including 15 who had been listed in previous years and eight who made the list for the first time.
The average age of the Golden 100 is 47.5 years.
Yelena Baturina remains the only woman on the list. Her fortune has fallen to $900 million from $4.2 billion a year ago.
PRECIOUS METALS
Kerimov buys Potanin's remaining 15% in Polyus Gold - Vedomosti
MOSCOW. (Interfax) - Structures controlled by Suleiman Kerimov have purchased Vladimir Potanin's remaining 15% stake in gold producer Polyus Gold, the business daily Vedomosti reported on Friday, citing unnamed sources.
Kerimov had purchased 22% of shares in Polyus from Potanin in March.
The Federal Antimonopoly Service has yet to clear the purchase, but it has been closed by the foreign-registered companies concerned. In fact, Kerimov's shares in Polyus are spread among a number of his companies, while clearance is only needed to raise a company's stake in the gold producer above 25%. The application from Kerimov's Nafta Moskva will be examined by the government commission on foreign investment in early May.
The 37% stake in Polyus was worth $3.2 billion as of April 16, but Potanin only realized about $1.3 billion from sale of the shares. The discount to the market when the first part of the deal was closed in March was 40% and the price of Polyus shares on the London Stock Exchange has risen 21.05% since. The sale price might have been higher, but was discounted because Polyus had less cash than was assumed.
Potanin's Interros group and Mikhail Prokhorov's Onexim group declined to comment on the report.
Onexim, which controls Polyus by virtue of a majority on the board of directors, claims to own about 30% of shares. Vedomosti reports its stake is actually 35%.
PRECIOUS METALS
Polymetal increased gold output 8% in Q1, silver down 7%
MOSCOW. (Interfax) - Russia's top silver producer Polymetal boosted gold production 8% in the first quarter of 2009 year-on-year to 65,000 oz.
Silver production fell 7% to 4.4 million oz.
The rise in gold production was driven by increasing capacity at the facility located by the Vorontsovskoye field (by 36%). The drop in production of silver was partially the result of a decrease in ore content at the Lunnoye filed owing to anticipated mine sequencing, the company said.
Polymetal's sales revenue increased by 3% to $11 million. In the first quarter of 2009, the company boosted gold sales by 25% to 66,000 ounces while silver sales went up by 18% to 4 million ounces. The increase in sales revenue was driven by rising market prices on both precious metals.
The company confirmed a production forecast on gold for 2009 coming...
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