IKEA to Beat “The Way to Communism” and to Invest US$2.1 BLN in its Russian Malls

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By Marina Romanova

1454919171_ikeaThe Supreme Court of Russia has affirmed the lower court’s ruling rejecting a claim of an agricultural enterprise, former collective farm “The Way to Communism”, which demanded to demolish two 15 store’s buildings of the “Khimky” business park, belonging to Swedish furniture retailer. Thus the court has settled the claim of IKEA, Russian news agency RIA Novosti reports.

The 16.4 hectare plot of land has been at the root of a long-term dispute between the retailer and former collective farm, now called Khimki Collective Agricultural Enterprise. They accuse IKEA of faking the documents required to obtain the land on the Leningradskoe highway, the Russian Kommersant daily reported.

Agricultural Enterprise board members claim that their signatures were faked and that they never agreed to give away the disputed land to the Khimki administration. Khimky city administration leased out the plot of land to IKEA for 49 years in 1993 and then sold the land to the retailer in 2011. Continue reading…

EU to roll over Crimea ban for another year

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By Marina Romanova

The European Union decided last Friday to prolong the ban for a year on business dealings with the Black Sea peninsula of Crimea, which was annexed by Russia from Ukraine in March, 2014.

The sanctions are prohibit imports and export of certain products from the region, any investment there or cooperation in tourism services.

“The European Council (of member states) has extended until June 23, 2017 the restrictive measures adopted in response to the illegal annexation of Crimea and Sevastopol by Russia,” the EU official statement said.

Continue reading…

Russia’s diamond miner to start new kimberlite pipe and plug state budget holes

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By Marina Romanova

KMO_124003_04031_1_t218_212550Russian diamond miner Alrosa PJSC has announced the start of the development of Zarya kimberlite pipe, a new deposit in its Aikhal Mining and Processing Division (MPD) located in Mirny District of Russian Republic of Sakha. The initial investment estimated by the company to approximately US $150 million. The announcement came along with the news of 10.9 percent of central government Alrosa’s stake, valued at more than US$860 million, to be auction soon.

The new deposit

The first commercial blasting on brand new Zarya pipe reportedly took place on June 10th and triggered the first stage of the deposit development – surface stripping to remove barren sedimentary rock overlying the ore body, Diamond World News Service explains. Continue reading…

Regulator to approve acquisition of 13.3 percent of Siberian Bystrinsky GOK by Chinese Investors

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By Marina Romanova

IMG_2748!Government Commission on Monitoring Foreign Investments has approved long anticipated acquisition of 13.3 percent of Bystrinsky copper-gold-iron development project by Chinese Highland Fund, www.finmarket.ru quoted Igor Artemyev, head of the Russian Federal Antimonopoly Service, as saying.

Last December, China’s Highland Fund, consortium established by prominent Chinese investment funds and corporations, has agreed to acquire a 13.33 percent stake in the Bystrinsky copper project of MMC Norilsk Nickel OJSC located in the Zabaykalsky Kray of Russian Siberia for a total consideration of US$100 million. Since December 2015, partners were expecting Federal Antimonopoly Service to consent the acquisition.

Nornickel did not disclose the identities of the Chinese investors behind the deal. Pavel Fedorov, company deputy chief executive, said to The Financial Times, they included “some of the premier Chinese private equity and state-owned investment corporations”. PRC’s firms are expected to become consumers of the plant’s main production, copper concentrate.  Continue reading…

Russia to reduce its reliance on Boeing and Airbus with new passenger jet

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By Marina Romanova

structure_property_image_2943Siberian Irkut Corp. assembling plant, part of the Russian state-run United Aircraft Corporation, rollout a new mid-range passenger jet MC-21-300 this Wednesday in corporation’s home city of Irkutsk, corporation press release said.

The much-anticipated new aircraft was named as a successor to the Tu-154, the legendary Soviet-era trusty beast which had faithfully served then only national carrier Aeroflot since the 1960s. There is a hope that new MC-21 with nearly 25 percent lower fuel consumption than other aircraft in its class could compete with the A320neo and Boeing 737 MAX.

The a twin-engine short- and mid-range narrow-body passenger jet, MC-21 is available in two versions —the 200 and 300— which seat 132 and 163, respectively, in a standard two-class layout, or a maximum 165 and 211 seats. Unlike the old Soviet designs, the new jet is built with a significant amount of composite materials that help reduce weight and enhance fuel efficiency. New jet also has an enlarged fuselage (4.06 meters versus 3.96 and 3.75 meters in the A320 and Boeing 737, respectively), which means larger passenger and luggage compartments. Continue reading…

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