Russia 111215 Basic Political Developments

Rusal Says Not Seeking to Skip Interest Payments on Bank Loans

http://www.bloomberg.com/news/2011-12-15/rusal-asks-banks-to-freeze-interest-payments-vedomosti-says.html
By Ilya Khrennikov - Dec 15, 2011 10:03 AM GMT+0400

United Co. Rusal, the world’s biggest aluminum maker, hasn’t asked banks to allow it to skip interest payments on loans next year, the company’s press service said by e-mail, denying a report today in Vedomosti.

Rusal has requested lenders temporarily waive covenants on a $4.75 billion pre-export finance loan it signed Sept. 29, a person with direct knowledge of the deal said on Dec. 6.

To contact the reporter on this story: Ilya Khrennikov in Moscow at [e-mail]

To contact the editor responsible for this story: John Viljoen at [e-mail]
Russian Helicopters looking to raise $900m

http://www.rbcnews.com/free/20111215104545.shtml

      RBC, 15.12.2011, Moscow 10:45:45.Russian Helicopters has priced its additional share offering at $31.58 per share, the state-controlled helicopter holding said in a statement. Thus, the company could raise about $900m.

      Russian Helicopters starts offering 28.5m shares by public subscription today. The company's share capital is expected to increase 30% after the offering from the current RUB 94.99m (approx. USD 2.99bn) split into 94.99m shares. The offering proceeds will be used to repay debt and purchase shares in subsidiaries as part of mandatory offers.

December 15, 2011 12:16

Mechel boosts Q3 EBITDA 9% to $678 mln, as forecast

http://www.interfax.com/newsinf.asp?id=295334
MOSCOW. Dec 15 (Interfax) - Mechel (RTS: MTLR) boosted earnings before taxes, depreciation and amortization (EBITDA) to US GAAP 9% year-on-year in Q3 2011 to $678 million, the coal and steel group said in a statement.

This was a shade above the $670 million that analysts predicted in a consensus forecast for Interfax.

Net profit was $26 million in Q3 2011, down from $341 million in the same period of last year.

Overall debt was $9.5 billion as of September 30. Cash and cash equivalents were $518 million, and net debt was $9 billion.

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December 15, 2011 11:50

Acron may sell VEB stake in potash project

http://www.interfax.com/newsinf.asp?id=295305
MOSCOW. Dec 15 (Interfax) - Vnesheconombank (VEB) may be in line to acquire a 20% minus one share interest in Acron's (RTS: AKRN) Talitsk potassium section development project.

Business daily Kommersant writes that the bank may buy a stake in Verkhnekamsk Potash Company, which holds the license rights to the section.

The stake is valued at 6.7 billion rubles. VEB would also extend the company a credit of $1.12 billion for six years at 3M LIBOR+6.5% per annum. But Acron would have to find a buyer for another 29% in the project. VEB has put the question of buying into the project on the agenda for a supervisory board meeting planned for Friday.

Acron originally wanted to sell VEB 49% for $720 million in order to put the money into development.

The plan is for VEB to buy into Verkhnekamsk Potash Company next year, and for Acron to sell 29% plus one share to another investor for $327 million and buy it back before 2020.

The bank will hold onto the Verkhnekamsk Potash Company stake until Acron pays back the credit extended. The agreement stipulates that the bank will sell the shares not later than January 31, 2025 at a price based on yield of 8% per annum and factoring in initial investments of $225.72 million for the period during which it is an actual owner ($388 million total as a result). VEB management approved all the pertinent decisions at the end of last month.

However, the bank may put off financing the project if Acron fails to meet a certain number of conditions. In particular, if the company exceeds its budget or finds itself short of money there will be no additional financing for the deposit's development. Acron or an agent it authorizes is obliged to buy up the outstanding 29% plus one share for an additional issue in the event that stake does not attract the interest other investors.

Acron has decided to reorganize the limited-liability company Verkhnekamsk Potash Company into a closed joint stock outfit.

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VEB May Help Fund Acron Potash Development, Kommersant Reports

http://www.bloomberg.com/news/2011-12-15/veb-may-help-fund-acron-potash-development-kommersant-reports.html
By Ilya Khrennikov - Dec 15, 2011 11:26 AM GMT+0400

VEB, Russia’s state development bank chaired by Prime Minister Vladimir Putin, may decide tomorrow to help fund OAO Acron’s biggest potash deposit, Kommersant reported, citing people it didn’t identify.

VEB may spend 6.7 billion rubles ($210 million) to buy 20 percent in Acron’s Verkhnekamsk Potash Company, which develops the Talitsky potash deposit in Perm region, and lend $1.1 billion for six years to help develop the field, the newspaper said. The interest may be set at 6.5 percent over the London interbank offered rate, Kommersant said.

Acron will have to find a buyer for a 29 percent stake in the project, the newspaper said. VEB’s board may meet tomorrow to discuss the matter, according to Kommersant.

Acron spokeswoman Elena Kochubey and VEB’s press office declined to comment when called by Bloomberg News.

To contact the reporter on this story: Ilya Khrennikov in Moscow at [e-mail]

To contact the editor responsible for this story: John Viljoen at [e-mail]

E-commerce software start-up raises $1.5m

http://www.rbcnews.com/free/20111215112657.shtml

      RBC, 15.12.2011, Moscow 11:26:57.Russian e-commerce software maker Ecwid has raised $1.5m by selling a minority stake to venture capital fund Runa Capital and plans to expand into the U.S., RBC Daily reported.

      The Ulyanovsk-based company, which develops online store applications to be incorporated into websites, intends to open up an office in California, expand its staff of developers and boost its client base to 1m from the current 100,000.