10-Ruble Note Stops Here
The Central Bank will begin phasing out the 10-ruble note this fall, a move that could save the budget 18 billion rubles ($577 million) over the next 10 years, the bank’s First Deputy Chairman Giorgy Luntovsky, told reporters Wednesday.
“Coins are more expensive to make then bills, but they will stay in use longer,” Luntovsky said, adding that the life span of a 10-ruble note is one year, compared to nearly 30 years for a coin. (MT)
Aeroflot Delays Airbus Jets
Aeroflot said Wednesday that it was delaying the delivery of five new Airbus planes because of the fall in passenger numbers as Russia weathers its first recession in a decade.
Two A320-300 planes scheduled for delivery in the first quarter of 2010 will now be delivered separately, at the start of 2011 and the start of 2012. Three A321-200 planes due in the third quarter of 2010 will instead be delivered in 2012. (Reuters)
Probe Into Sibirsky Cement
Kemerovo Governor Aman Tuleyev called for an investigation into Sibirsky Cement’s pricing policy, saying in a statement on the regional government web site that the company charges 15 percent to 20 percent more than its competitors.
The higher prices are driving construction companies away from the region and stalling the local housing market, Tuleyev said in the statement. (Bloomberg)
Agency to Get Telecom Stake
The Deposit Insurance Agency will buy 29.99 percent of Rostelecom from KIT Finance, the agency’s Deputy General Director Valery Miroshnikov said, Vedomosti reported Wednesday.
The agency has already bought about half of the stake, Miroshnikov said.
After completing the purchase, the agency may ask Vneshekonombank to manage the stake, Vedomosti said. (Bloomberg)
AvtoVAZ Halts for August
AvtoVAZ may stop car production for a month starting Aug. 3 because of slumping demand, Kommersant reported Wednesday, citing Nikolai Karagin, the labor union head said.
The suspension is aimed at cutting the carmaker’s inventory in half, the newspaper reported. (Bloomberg)
For the Record
- Norilsk Nickel said Wednesday that it had not yet decided on dividend payments, denying a report by UniCredit Securities brokerage of plans for a hefty first-half payout. (Reuters)
- Novatek will seek shareholders’ approval at an Aug. 7 meeting to request as much as 30 billion rubles ($964 million) from Gazprombank, the company’s chief financial officer, Mark Gyetvay, said Wednesday. (Bloomberg)
- United Company RusAl may cut aluminum capacity in the Urals and European Russia and focus on production in Siberia where power is cheaper, owner Oleg Deripaska said, Interfax reported. (Bloomberg)
- Silvinit plans to raise second-half production after signing a contract to supply potash to India for $460 per ton, the company said Wednesday. (Bloomberg)
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