Lithuania also pointed out that it could — but would not — impose the same sanctions on goods travelling over its territory to and from Russia’s western exclave of Kaliningrad. The veiled warning outraged Russian officials, who on Saturday vowed to ban some Lithuanian dairy imports effective Monday. “There is every likelihood that Russia will begin limiting the admission of individual groups of dairy products on October 7,” news agencies quoted Russia’s public health inspector Gennady Onishchenko as saying. “At the start of next week, we will launch a series of measures aimed at halting the admission… of Lithuanian products that do not meet Russian legal requirements aimed at protecting consumer rights.” ITAR-TASS said Russia has already imposed some import restrictions on Lithuania’s top cheese producer Pieno Zvaigzdes. Russia first warned it may ban Lithuanian dairy imports on Wednesday due to “sanitary and epidemiological risks”. Tests on Lithuanian food products had “yielded unsatisfactory results”, Onishchenko said at the time. The dairy industry, which is responsible for about one-fifth of Lithuania’s agricultural production, is a vital source of export revenue. Moscow’s restrictions would be especially painful because the Russian market accounts for about 85 percent of Lithuania’s total dairy exports. The nation of three million, which hopes to swap its currency for the euro by 2015, is keen to avoid any economic shocks that may derail those plans. It has also sought the defence of larger European countries by promoting a united EU stance against Russia’s trade bans.
Russia’s VTB agrees deal to sell Rosbank stake to SocGen — sources
Mail.ru added 0.9 percent to $39.34 in London yesterday, the highest level since May 8, 2012, and traded at 25 times estimated earnings. The company has been trading at a discount to Yandex since March, the data show. Totally Unjustified The discount is totally unjustified, Alexander Vengranovich, an analyst at Otkritie Financial Corp. in Moscow, said by phone from Moscow yesterday. There should be no discount and Mail.ru has a chance to catch up. It looks more attractive to investors because its cheaper and because it is expected to pay a special dividend following sale of stakes in Facebook and Qiwi. Vengranovich cut his recommendation on Yandex to a hold July 29 and reiterated a buy on Mail.ru in September. Internet advertising remained the fastest-growing segment as it increased 30 percent, the data show. Russian Internet advertising grew more than fivefold to 56 billion rubles in the five years to 2012, according to AKAR. A new version of Yandex-market expected later this year will help the company increase its share in e-commerce market and boost revenue, Lepetukhina said. Yandex considers entering the video content segment, which would allow it to make money with video advertising. Lepetukhina cut her recommendation on Mail.ru to hold from buy last month and reiterated a buy on Yandex in August. United Co. Rusal (486) , a Moscow-based aluminum producer, fell 0.4 percent to HK$2.43 in Hong Kong trading as of 10:32 a.m. local time.
PM to embark on visit to Russia, China from Oct 20
State-controlled VTB, which bought into Rosbank in 2010, said in May that the stake was not a strategic investment and that it was in talks to sell the asset. That followed upheaval at Rosbank when the banks Chief Executive Vladimir Golubkov was charged with bribery. Golubkov was later dismissed from the bank. Under the deal, VTB will sell the Rosbank stake to SocGen while the French bank will sell VTB shares it holds in Russian companies, loans to Russian companies and Russian real estate assets, the source said. The source did not disclose a monetary value for the deal. Analysts have said VTBs stake could be worth around $300 million (Dh1.1 billion) and identified SocGen as the only likely buyer. The price VTB paid for the asset in 2010 was not disclosed at the time. The deal is expected to close in the fourth quarter, the source said. Rosbank is currently 82 per cent owned by SocGen, which first bought into the bank in 2006. Metals tycoon Vladimir Potanin, who with former partner Mikhail Prokhorov used to own Rosbank, holds the remainder along with other shareholders, according to Rosbanks website. VTB previously held talks with SocGen about selling the stake in December 2010, a source quoted VTB Chief Executive Andrei Kostin as saying at the time. VTB has said it is looking to sell non-core assets. It has said it aims to cut its holding in the Russian unit of mobile phone company Tele2 below a controlling stake in the coming year. Rosbank was not immediately available for comment. VTB and SocGen declined to comment.
The first leg from October 20 to 22 in Russia will see the Prime Minister holding talks on important issues such as nuclear cooperation, trade and defence. Dr. Singh will on October 22 travel from Moscow to Beijing where he is expected to articulate Indias concerns over trans-border rivers, trade deficit and boundary incidents. Significantly, after the recently-concluded India Russia Inter Governmental Commission meeting in Moscow, the indications are that the two countries have made progress to clear the nuclear liability issue, crucial for a contract for supply of Russian reactors for Units 3 and 4 of the Kudankulam Nuclear Power Project (KNPP). It is understood that hectic parleys were on to conclude the tehno-commercial negotiations for the Unit 3 and 4 of KNPP) ahead of Singhs visit and officials are hoping to ink it after the talks between the two sides. The effort is to basically match Indias Civil Liability for Nuclear Damage (CNLD) Act, 2010 and the internationally and nationally accepted principles. Another crucial issue would be Russias investment in telecom sector with Russian giant Sistema last week expressing unhappiness over telecom regulator TRAIs recommendations on spectrum auction, saying it created ambiguity and policy uncertainty that would adversely impact its investment plans. Dr. Singh is expected to assure Russian leader on this front. Sistema Shyam Teleservices Ltd, which offers mobile services under the MTS brand, has protested against TRAI recommendations that the spectrum used by CDMA operators should not be auctioned and a part of it be explored for use by GSM services. Related Content