MOSCOW, October 20 (RIA Novosti) Ukraine, Belarus struggle to overcome energy dependence on Russia /Russian oligarch set to buy stake in General Motors/Rivals seek to scuttle Kamov's helicopter contract to Portugal/Transaero in search for Western investment/Powerful human rights organizations fail to re-register in Russia
(RIA Novosti does not accept responsibility for articles in the press)
Nezavisimaya Gazeta
Ukraine, Belarus struggle to overcome energy dependence on Russia
Officials from Ukrainian gas pipeline operator Ukrtransgaz, a subsidiary of Ukraine's Neftegaz, and Belarusian operator Beltransgaz met in Minsk to coordinate their tariff policy on deliveries of Russian gas to Western Europe. Ukrainian experts believe raising gas transit tariffs both in Belarus and Ukraine would be a reasonable move in light of an increase in prices for Russian energy deliveries to the countries.
Ukrtransgaz refuted the report, saying it was "a working meeting" designed to reach an agreement on scientific and technical cooperation between Beltransgaz and Ukrtransgaz, and a way to coordinate the companies' control services.
However, experts tend to assume that Belarus and Ukraine are negotiating a common transit policy. "The initiative looks quite reasonable," said Ulyana Terentyeva, a Ukrainian expert on fuel and energy. "They probably want to keep it quiet and later voice similar proposals during negotiations with Russia. Then Ukrainian and Belarusian officials will hold negotiations at the appropriate company level so as not to be accused of collusion."
Ukrainian political scientist Vadim Kasayev said such a scenario is possible, because Belarus' foreign policy has changed and the country has had more contacts with other energy powers lately. In addition, Vitaly Gaiduk, who will be negotiating gas agreements with Russia "with more precision and assertion," has been appointed secretary of Ukraine's National Security and Defense Council. The expert believes news of the negotiations was deliberately released.
Belarusian analysts have a similar opinion. Tatyana Manenok, a fuel and energy expert, also believes the negotiations were "a current political issue" that "will strengthen the positions of Ukraine and Belarus." She believes no conflicts with Gazprom will take place, because all the parties are mutually vulnerable - some need gas, others seek transit.
Gazeta.ru
Russian oligarch set to buy stake in General Motors
The German business publication Manager-Magazin has reported that Russian business tycoon Oleg Deripaska, owner of aluminium giant RUSAL, had bought a share of General Motors and plans to acquire a 10% stake in the world's largest automaker, which has a capitalization of $18.3 billion.
Deripaska, the sixth-wealthiest man in Russia, plans to spend at least $1.8 billion on the purchase. But experts said he might not join the GM board of directors.
In April 2006, leading carmaker GAZ Group, which is part of the automotive giant RusPromAvto, bought a license and equipment from DaimlerChrysler allowing it to produce Dodge Stratus and Chrysler Sebring vehicles. In late July, GAZ Group took over the British van maker LDV Holdings.
RUSAL and its majority shareholder, Basic Element (Bazel), said Deripaska and GM have not closed the deal yet. GM's Russian headquarters told the paper to contact its international office, which declined to comment.
However, Deripaska, who is becoming more interested in the automotive industry, may have bought a stake in GM. It was rumored this summer that Deripaska was interested in buying the premium car company Jaguar, a loss-making member of the Ford Motor Company.
Automotive industry experts said Deripaska was unlikely to accomplish his objective. Timur Pestov of AG Capital Management said the Russian tycoon might spend $1.8 billion on a 10% GM stake. But this would amount to a portfolio investment, as was the case with troubled British-Dutch steel group Corus, Pestov told the paper.
"Deripaska and Alisher Usmanov, who have bought Corus stock in the past, never made it onto the group's board of directors," said Pestov.
Manager-Magazin said Deripaska was interested in expanded business operations on the Asian market. But analysts told the paper that the Asian market remains closed to Russian businesses.
Pestov said the South East Asian market was extremely competitive. Unlike Japanese and South Korean vehicles, substandard Russian cars would cost more than local models, he told the paper.
Kommersant
Rivals seek to scuttle Kamov's helicopter contract to Portugal
Portugal has paid Russia's Kamov Company an advance on six Ka-32 helicopters. However, the deal may be called off at any moment. Poland's PZL Swidnik and a representative of the American firm Bell Helicopter have challenged the results of the Portuguese tender in court, won by the Russian company in the spring.
In early October, the paper was told by the OboronProm defense corporation that Portugal had made an advance payment of $50 million to Kamov, which is 49,64% owned by OboronProm.
Under the contract, the Russian company is to deliver six firefighting Ka-32 helicopters to Portugal. A few days ago, the Kumertau aviation production enterprise, a Kamov contractor, began assembly of the first aircraft. It will be delivered to the client in February, with the entire contract expected to be fulfilled before the end of 2007.
Kamov is actively promoting firefighting Ka-32s on the European and Asian markets. To date, South Korea has bought about 50 of them, Spain nine, and Switzerland two. Kamov has been offering helicopters to Portugal since 2003.
Portugal's Ministry of Internal Administration, whose role is similar to Russia's Emergencies Ministry, announced in November 2005 four tenders for the delivery and lease of light and medium helicopters.
The move was made necessary by widespread fires in 2005, which consumed half of Portugal's forests. A tender to supply medium-sized helicopters was contested by Portugal's Helibravo, Poland's PZL Swidnik S.A., France's Eurocopter and two Portuguese helicopter operators - Helisul and Heliportugal (the latter offering Russian-made Ka-32A11VS). The tender was won in April by Heliportugal. In May, Kamov signed a contract for the delivery of six helicopters.
Helisul and PZL Swidnik disagreed with the decision of the tender's commission and appealed to the City Arbitration Court of Lisbon. They challenged the tender's results, pleading procedural irregularities. Court hearings on the case continue.
However, the Portuguese side, without waiting for a court ruling, paid an advance for the manufacture of contracted helicopters. OboronProm is sure that the chances of Helisul and PZL Swidnik winning are "negligibly low, because the tender commission's ruling is formulated impeccably". PZL Swidnik refused Thursday to discuss possible litigation.
Vedomosti
Transaero in search of Western investment
The management of Russian airline Transaero, which recently consolidated 90% of the its ownership, has announced a private offering of up to 15%, set for late this year or early next year, lead-managed by Rosbank. The price will be between $75 million and $120 million. This has shocked industry experts, who consider the company to have overvalued itself.
Transaero chief executive Alexander Pleshakov has valued the entire company at $500 million. Yan Yanovsky, Rosbank director for corporate finance, said about 10% will be placed, with all proceeds going to the company itself, rather than to shareholders.
A source close to the transaction said that, including corporate debt, Rosbank put Transaero's value at as much as $800 million. Russia's national carrier Aeroflot yesterday was worth $2.5 billion on the RTS, which is about equal to its consolidated revenue -- the nation's second-largest airline, S7, which generates turnover of $760 million, was worth $273 million.
The bank justifies its estimate by the comparative study of Transaero's key rivals in Russia and other emerging markets. Going by the capitalization/EBITDA ratio, Rosbank conditionally valued the airline at $1.5 billion, but had to make a discount due to Transaero's non-public status.
The list of brokerages that, according to Yanovsky, will receive a formal offer with a road show next week include mainly Western names, such as Templton and Temasek of Singapore, a source close to the events told the paper. Russian firms have not been offered a chance to participate.
"We still could take part," said Ivan Mazalov, a fund manager with Prosperity Capital Management.
Russkiye Fondy Vice President Ivan Rudenko and Vadim Kleiner, head of corporate research with Hermitage Capital Management, have also indicated their interest.
Comments on Transaero's fair value are scarce, said Oleg Sudakov from Rye, Man & Gor Securities, because the airline has never issued a financial statement. On the basis of Russian Accounting Standards, he valued Transaero at $350 million to $400 million.
Novye Izvestia
Powerful human rights organizations fail to re-register in Russia
Human Rights Watch, one of the world's largest human rights organizations, yesterday announced it will suspend its operations in Russia after its Moscow office failed to re-register by October 18, the last day for submitting documents by foreign non-profit organizations.
Officials blame human rights activists themselves for delaying the submission of documents. Meanwhile, Human Rights Watch said it filed the necessary documents with the Federal Registration Service in late September. As of October 18, some 100 branches of foreign non-profit organizations have been re-registered in Russia, and documents from 79 organizations are still being processed.
A few days ago, the Federal Registration Service said those organizations that fail to re-register before October 18 will not have to suspend their activities, but they will be unable to pursue "their tasks and goals."
Sergei Nikitin, director of the Russian office of another powerful international organization, Amnesty International, said: "Today, all we can do is go to work and handle our internal affairs, because all our projects have been suspended except for those under earlier contracts. For example, we can publish documents that have been previously translated into Russian. And I am currently drafting a report for my bosses."
The head of Amnesty International Russia said they have had to reject a few projects. "The chance that they will register us soon is small," Nikitin said. "By law, they can investigate us for a month, and there may be some complaints. In addition, we are preparing an application to our London office confirming that we are a non-profit organization."
