Russia 100715 Basic Political Developments

Businessday: Renaissance to bed down BJM purchase

http://www.businessday.co.za/articles/Content.aspx?id=114797
SURE KAMHUNGA

Published: 2010/07/15 07:53:41 AM

ACQUISITIVE Russian-based Renaissance Capital is to begin integrating BJM Securities into its global emerging business portfolio stretching from Russia to New York after the completion yesterday of the acquisition of the brokerage firm for R207m.

The acquisition, announced in May, has received regulatory approval. It is Renaissance Capital’s first investment in SA since it set up here in February.

Clifford Sacks, Renaissance Capital’s CEO for SA and head of pan-African equities, said yesterday the acquisition would provide BJM Securities with enough balance sheet strength to take on competitors in a market that is highly competitive and short of specialist skills.

“Now that the acquisition has received the necessary regulatory approvals, we can now start the process of integrating the business into our global structure.

“We have a big muscle emerging markets platform and our near-term objective is to be able to complete this integration process, especially now that we have added more specialist staff to the team,” Mr Sacks said.

BJM Securities had lacked the financial muscle and scale to attract bigger and global clients.

“If you want to bring it to basics, although BJM is the pre- eminent research firm in the industry, it lacked balance sheet strength and distribution. We now have that scale using our global offices and emerging markets presence,” he said.

BJM Securities had already recruited top analysts and investment bankers as Renaissance prepares to take on the local and African market.

“You might say we have hit the ground running,” Mr Sacks said. The opportunity to buy BJM Securities had come at the right time, he said, remarking how difficult it was to start a brokerage business from scratch, given the capital and skills required, and the time it took to establish scale and a strong brand.

Renaissance Capital’s staff in its African operations (Nigeria, Kenya, Zambia, Ghana and SA) had doubled to 110 with the acquisition of BJM Securities.

The acquisition would also boost revenue, he said.

Referring to financial performance, Mr Sacks said he would rather discuss numbers next year. Renaissance was convinced of the potential of Africa where it wanted to replace global competitors who were fond of sending in “briefcase bankers” who worked on deals and then went home.

Foreign investors were seeing Africa in a new light after the downturn in Europe and the US last year, he said. Yesterday, Thomson Reuters said the value of mergers and acquisitions in sub-Saharan Africa had doubled in the first half of this year.

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Reuters: Rosinter H1 sales boosted by growing demand

http://www.reuters.com/article/idUSLDE66C1II20100715
3:28am EDT

* Same-store sales up 6 percent, vs 2.6 percent in Q1

* Number of bills up 6.8 percent

* Total sales grew 17 percent

MOSCOW, July 15 (Reuters) - Russia's biggest and only listed restaurant group, Rosinter Restaurants (ROST.MM: Quote, Profile, Research, Stock Buzz), said its same-store sales grew 6 percent in the first half on the back of a revival of consumer demand.

The result was boosted by a 6.8 percent increase in the number of bills, while the average bill edged down 0.7 percent, the company said in a statement on Thursday.

"In the first half of 2010 Rosinter effectively used a revival of consumer demand in the restaurant market, which led to improvement of the company's results," Chief Financial Officer Viktor Shlepov said. Rosinter owns chains such as Planet Sushi in Russia and in the Commonwealth of Independent States (CIS) and operates the Russian franchise of TGI Friday's. It also has a joint venture with Britain's Whitbread (WTB.L: Quote, Profile, Research, Stock Buzz) to develop the Costa Coffee brand in Russia.

The company did not provide separate second-quarter numbers. In the first quarter, sales in comparable restaurants were up 2.6 percent on the back of a 4.3 percent increase in traffic. [ID:nLDE63E09K]

Total first-half sales rose 16.9 percent year-on-year to 4.44 billion roubles ($145.2 million), and the number of restaurants increased to 356 from 348 in the first quarter. ($1=30.57 Rouble) (Reporting by Maria Kiselyova; Editing by Samia Nakhoul)

Moscow Times: For the Record

http://www.themoscowtimes.com/business/article/for-the-record/410432.html
15 July 2010

Vneshekonombank is adding $600 million to its July 2020 loan participation notes, according to three people with knowledge of the sale. The additional notes will be priced to yield 6.6 percent, the people said. (Bloomberg)

Razgulyai Group appointed Viktor Sukhinov as chief executive, the company said Wednesday. Sukhinov, a former head of agricultural company Prodo, replaces Dmitry Tyukhtenko at Razgulyai, it said. (Bloomberg)

Zarubezhneft plans to start drilling for crude in Cuban waters next year, chief executive Nikolai Brunich said Wednesday.(Bloomberg)

Activity in the Oil and Gas sector (including regulatory)

Reuters: Russia's oil export duty to rise by 6 pct in Aug

http://af.reuters.com/article/energyOilNews/idAFLDE66E0G320100715
Thu Jul 15, 2010 7:55am GMT

MOSCOW July 15 (Reuters) - Russia is set to raise its oil export duty in August by 6 percent from $248.8 per tonne currently, tracking the recent rise in crude prices, according to Finance Ministry figures and Reuters calculations.

Taxes on crude from East Siberian fields, which the government reintroduced last month after a six-month respite, will rise by more than 12 percent to $80.3 per tonne, up from the July rate of $69.9.

The export duty, a major factor in the financial results of Russia's oil companies, is based on monitoring of international prices for Russia's benchmark Urals crude blend URL-E.

The August duty will be based on prices from June 15 to July 14. Finance Ministry official Alexander Sakovich told Reuters on Thursday the average price of Urals for that period was $74.45 per barrel.

Reuters calculations, based on custom tariff regulations and the average oil price estimate, show the August crude oil export duty is thus likely to be set at $263.86 a tonne, up 5.7 percent from the July level of $248.8.

The August duty was in line with the $262-$264 range forecast by the ministry on July 12, four days before the end of the monitoring period. [ID:nLDE66B0BL]

Export duties on light refined products, such as gasoline and gas oil, are to be set at $190 per tonne, up from the current level of $179.9 per tonne.

On heavy refined products, such as fuel oil, the August tariff will be set at around $102.4 above the current $96.9 per tonne.

Russia reintroduced a tax on crude from 22 East Siberian fields on July 1, with the duty set at reduced rate of 45 percent of the price in excess of $50 per barrel. (Reporting by Katya Golubkova; writing by Jessica Bachman; Editing by William Hardy)

15.07.2010 10:51

Gazeta.ru: The export duty on oil in Russia from August 1, could grow to $ 263.8 per ton

http://www.gazeta.ru/news/business/2010/07/15/n_1520675.shtml


The export duty on crude oil in Russia since August 1, 2010 increased to $ 263.8 per tonne against the current is now $ 248.8 per tonne. This is evidenced by preliminary calculations by the formula set by law on customs and tariff regulation. As the head of the summary and analytical department of the Ministry of Finance of Russia, Alexander Sakovich, the average price of oil, according to monitoring, from June 15 to July 14, 2010 amounted to $ 74.45455 per barrel. Accordingly, the rate should be set at $ 263.862 per ton.
In the light oil export duty will amount to $ 190 per ton (now $ 179.9 per tonne), on heavy oil products - $ 102.4 per ton (now $ 96.9 per ton). Finally the rate of export duty on oil will determine the government of Russia in late July.
Sakovich also said that the duty on oil from eastern Siberia will be August 1, 2010 $ 80.3 per ton (now $ 69.9 per ton). "Prime-TASS"

07/15 10:47   Oil duty set to rise to $263.8 per tonne on Aug 1; E. Siberian oil - $80.3

http://www.interfax.com/