Lebedev Denied Bail
MOSCOW (Reuters) -- A Moscow court declined an appeal to allow Platon Lebedev, a shareholder in oil company Yukos, out of prison, a spokesman for Lebedev said Wednesday.
Lebedev, who is being investigated for his role in the 1994 privatization of a fertilizer company, has been held in a Moscow jail since early July.
"The lawyers' appeal was declined and the Basmanny district court's decision was left in force. Lebedev remains detained," said Yury Kotler, a spokesman for Menatep, the management company that holds a majority stake in Yukos on behalf of its core shareholders.
"All the defense arguments that he is not a threat to society were rejected again by the court," Kotler added.
The court has repeatedly ruled in favor of prosecutors, who have argued that Lebedev could flee Russia if released on bail, Lebedev's lawyers have said.
No Danone Deal in '03
MOSCOW (Reuters) -- Wimm-Bill-Dann will not be sold this year, chairman David Yakobashvili said Wednesday, rejecting an earlier report that Danone was poised to take over the juice and dairy maker this month.
Yakobashvili said Wimm-Bill-Dann shareholders were in consultation with potential investors.
"If we announce we are entering official negotiations, we'll still need five or six months to get anywhere," he said.
The Financial Times reported this month that the French food firm would acquire control of Wimm-Bill-Dann, Russia's largest dairy products and juice producer, by the end of October.
There has long been speculation that Danone might buy Wimm-Bill-Dann. The Russian firm said in June that some of its shareholders were in talks about a possible takeover by Danone. Yakobashvili has said the company has also been in contact with Coca-Cola, Pepsi and Nestle on potential investments.
Industrial Output Up
MOSCOW (Prime-Tass) -- Industrial output rose 6.8 percent on the year in the January-September period, the State Statistics Committee said Wednesday.
In the same period last year, industrial production was up 4 percent.
The committee said industrial output in September increased 8 percent on the year and 0.6 percent on the month.
Average daily production edged up 1.2 percent on the month.
Car Insurance Veto
MOSCOW (MT) -- The Federation Council is likely to veto amendments to the law on mandatory automobile insurance, Federation Council Speaker Sergei Mironov told Interfax on Wednesday.
A set of amendments postponing the full introduction of the law from Jan. 1, 2004, to July 1, 2004, were passed by the State Duma on Tuesday, in what appears to be a populist move sparked by deputies' and parties' efforts to win support in the Dec. 7 parliamentary elections.
The decision, however, is only an intermediary stage, since to become effective the amendment must go through a second and third reading, receive a stamp of approval from the Federation Council and get signed by the president.
The law on mandatory car insurance went into effect on July 1 this year. Drivers have been given a six months' grace period until lack of insurance becomes a violation punishable by an 800-ruble ($26) fine.
Oil Reserve Woes
MOSCOW (Reuters) -- Russia, the world's second-largest oil exporter, has no interest in raising production much above 9 million barrels per day because that would quickly deplete its reserves, Moscow's top energy official said Wednesday.
But analysts said it was up to private oil majors to decide whether to maintain fast output growth, which could rise to 12 million bpd this decade if new pipelines are built and prices remain above $20 per barrel.
Russia's oil output is booming for the fifth straight year as private majors, enticed by high oil prices, invest billions of dollars in Siberian fields. Production rose to 8.73 million bpd in September from just 6 million bpd in the late 1990s.
"We have no intention of undermining our resource base and channel everything toward export markets," Deputy Prime Minister Viktor Khristenko told a news conference.
Norilsk Gold Hunt
MOSCOW (Reuters) -- Norilsk Nickel on Wednesday looked determined to win the upcoming tender for the right to develop the Sukhoi Log gold deposit, unveiling production plans for the huge field.
State-owned Sukhoi Log is the world's second-biggest undeveloped gold field, according to a study by the World Gold publication. Gold reserves are estimated at 1,029 metric tons. The auction is expected next year.
"Provided we obtain the license, we can be producing 15 tons of gold a year at the plant, the first stage of which would handle 8 million tons of ore a year," Norilsk deputy CEO Maxim Finsky was quoted as saying by Interfax.
He was speaking at a presentation in Irkutsk, near Sukhoi Log, which sits alongside the Lenzoloto mine acquired by Norilsk earlier.
Ruble Edges Up
MOSCOW (Reuters) -- The ruble rose against the dollar in early official trading on Wednesday to a weighted average for tomorrow settlement of 30.1235 per dollar from 30.2348 in the previous session, the RTS said.
Burberry on the Way
MOSCOW (Prime-Tass) -- The Burberry Group, the British luxury clothes and accessories maker, plans to open its first store in Moscow early next year, company president Thomas O'Neill said in an interview with Vedomosti published Wednesday.
Burberry has signed a timeless exclusive distribution contract with Russia's JamilCo, which had already carried out market research for the company in Moscow. Next summer the two companies will decide whether or not to open any more stores in Russia.
Aeroflot Gets Airbus
MOSCOW (MT) -- Aeroflot on Wednesday received the first of 18 new Airbus A319 aircraft it ordered as part of a sweeping fleet restructuring, the flagship carrier said.
Aeroflot is replacing 27 older Boeings and Airbuses with 27 new craft -- 9 Boeing 767s and 18 Airbus A320/319s.
Restructuring is expected to be completed in 2005 and will allow the company to save $95 million annually.
Aeroflot operates more than 100 aircraft of 11 different makes.
Gazprom Accounting
MOSCOW (Reuters) -- Gazprom, which has resisted pressure to improve its financial reporting, said Wednesday its board would discuss the idea of presenting separate results for each of its divisions.
The monopoly currently holds all businesses in a single entity and its annual reports do not break down the individual performance of its production, transportation and sales units.
Government free market reformists say that makes it difficult for independent producers to evaluate how much they should be charged for using Gazprom's pipelines.
The Economic Development and Trade Ministry has proposed spinning off the different businesses to introduce clarity into Gazprom's reports as part of plans to restructure the gas industry.
Tinkoff Goes Macro
MOSCOW (MT) -- Microbrewer Tinkoff has teamed up with Germany's Krones AG to build a fully fledged brewery in the Leningrad region in a deal worth $75 million, Vedomosti reported Wednesday.
The plant, which will come online in September next year, will initially increase Tinkoff's output tenfold to 20 million decaliters. With an additional $20 million investment, the brewery will have a capacity of 40 million decaliters per year.
Vedomosti reported that 20 percent of the money for the project will come from a five-year loan from German bank HVB and two two-year loans from Aton and Zenit banks, as well as the company's own funds.
Tinkoff owner Oleg Tinkoff told Vedomosti that his company would be doubling its ad budget next year, while half of the new plant's capacity was expected to be used for a new, cheaper beer brand.
Pepsi to Launch Juice
MOSCOW (MT) -- In a deal worth $60 million, drinks giant Pepsi Bottling Group Inc. will launch production of its Tropicana brand at domestic juice company Nidan Foods' Moscow region factory in the first quarter next year.
Under the agreement Pepsi Bottling Group will help the Russian company distribute its Champion, Da! and Moya Semya brands countrywide.