Russia 110602 Basic Political Developments

National Economic Trends

11:25 02/06/2011ALL NEWS

Russia gold, currency reserves up on May 20-27.

http://www.itar-tass.com/en/c154/156098.html

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2/6 Tass 115

MOSCOW, June 2 (Itar-Tass) Russia's gold and foreign exchange reserves climbed by 1.5 million US dollars from 516.8 billion dollars to 518.3 billion (or by 0.29 per cent) on May 20-27, the business news agency PRIME-TASS reported on Thursday with reference to the foreign and public relations department of the Central Bank of Russia (CBR).

The country's foreign exchange reserves record registered on August 8, 2008 was 598.1 billion US dollars.

Since January 1, when the gold and foreign exchange reserves amounted to 479.379 billion dollars, this index has been raised by 8.1 percent.

Russia to start harvesting early winter crops on June 25

http://www.agrimarket.info/showart.php?id=108320
06/02/2011 11:12 

As of June 1, 2011, agrarians of the Russian Federation sowed spring agricultural crops throughout the areas of over 45 mln ha (90% of the planned areas), an increase of 5.2 mln ha compared to the last year indices, declared the press-cutting service of the Ministry of Agriculture. To date, agrarians of the Southern and North Caucasian Federal District completed the sowing works of grains, and started sowing oilseeds and forage crops.

Spring grains sowings occupied the areas of 28 mln ha (92% of the plan), up 2.4 mln ha compared to 2010 results.

As of the reporting date, Russian agrarians sowed maize for grain throughout the areas of 1.5 mln ha (82% of the forecast), up 85 thsd ha compared to the indices of 2010.

Agricultural commodity producers sowed rice throughout the areas of 179 thsd ha (88%), up 14 thsd ha compared to the same date in 2010.

Russia also continued sunflower sowing works – nearly 7 mln ha (102% of the forecast), up 887 thsd ha compared to results of 2010.

Agrarians of the country sowed spring rapeseed throughout 604 thsd ha (92% of the forecast), up 82 thsd ha compared to the corresponding date in 2010. Agrarians sowed soybean throughout 771 thsd ha (56%), up 86 thsd ha.

Agricultural commodity producers plan to start harvesting early winter crops – barley and rapeseed – on June 25, 2011. Agrarians will start harvesting winter wheat on July 1-5.

Business, Energy or Environmental regulations or discussions

Razgulay Group, Rusgrain, Rosneft, Lukoil: Russia Equity Preview

http://www.bloomberg.com/news/2011-06-01/razgulay-group-rusgrain-rosneft-lukoil-russia-equity-preview.html
By Marina Sysoyeva - Jun 1, 2011 10:00 PM GMT+0200

The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close.

The 30-stock Micex Index (INDEXCF) fell 0.9 percent to 1,650.68. The dollar-denominated RTS Index dropped 0.6 percent to 1,876.81.

OAO Razgulay Group (GRAZ) : Russia’s weather in June will be “mostly satisfactory” for crops, the country’s Federal Hydrometeorological Center said. Razgulay Group, a Russian grain producer and sugar producer, dropped 1.8 percent to 57.01 rubles.

Rusgrain Holding (RUGR RX): Wheat futures fell to a two- week low as Russia prepared to lift an export ban next month and rains expected this week in Europe may ease concern for drought damage to crops. Corn and soybeans rose. Rusgrain, a Russian agricultural holding, added 1.3 percent to 8,000 rubles.

OAO Rosneft (ROSN RX): Russia’s Energy Ministry is due to publish monthly oil production data. Russia’s largest oil producer fell 1.1 percent to 239.59 rubles. OAO Lukoil (LKOH RX), Russia’s second-largest oil producer, fell 2.9 percent to 1,767.30 rubles.

To contact the reporter on this story: Marina Sysoyeva in Moscow [e-mail]

To contact the editor responsible for this story: Claudia Carpenter at [e-mail]

Severstal, NLMK May Compete for Coal Rights, Kommersant Reports

http://www.bloomberg.com/news/2011-06-02/severstal-nlmk-may-compete-for-coal-rights-kommersant-reports.html
By Ilya Khrennikov - Jun 2, 2011 9:48 AM GMT+0200

OAO Severstal and OAO NLMK may compete for rights to a coal field in northern Russia that holds 620 million metric tons of resources, Kommersant said, citing people familiar with the matter that it didn’t identify.

Severstal billionaire Chief Executive Officer Alexei Mordashov wrote to Prime Minister Vladimir Putin asking the government to sell the rights to mine the Usinsk-1 deposit in one lot, while NLMK owner Vladimir Lisin has lobbied to split it in two for development with Severstal, Kommersant reported.

NLMK won a license in January for the neighboring Usinsk-3 deposit in the Komi region, where Severstal coal-mining subsidiary Vorkutaugol operates, the newspaper said.

Natalia Ivanova, a spokeswoman for Severstal, wasn’t immediately available for comment. NLMK’s press office declined to comment.

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

To contact the editor responsible for this story: Amanda Jordan at [e-mail]

(AMM) Solikamsk for sale; Rosatom possible buyer

http://www.metalbulletin.com/Article/2840963/Channel/197818/AMM-Solikamsk-for-sale-Rosatom-possible-buyer.html
June 02, 2011 - 02:41 GMT Location: New York

Speculation continues to mount that Russian magnesium producer Solikamsk Magnesium Works is on the auction block, with a unit of Russia’s State Atomic Energy Corp. (Rosatom) emerging as a possible contender, market sources said.

Speculation continues to mount that Russian magnesium producer Solikamsk Magnesium Works is on the auction block, with a unit of Russia’s State Atomic Energy Corp. (Rosatom) emerging as a possible contender, market sources said.

"We know that they are for sale. I think they have been on the block forever," one magnesium supplier said.

A second agreed, noting that speculation about a sale was rife at the International Magnesium Association’s Annual World Magnesium Conference in Prague in May.

"The Solikamsk guys in Prague at that point said they were waiting to hear. There’s definitely something pending," he said.

Russian Railways ups 2011 net profit forecast

http://www.rbcnews.com/free/20110602112612.shtml

      RBC, 02.06.2011, Sochi 11:26:12.Russian Railways has revised upward its RAS net profit forecast for 2011 to RUB 10bn (approx. USD 358m) from RUB 2.7bn (approx. USD 97m), the company's First Deputy President Vadim Mikhailov told reporters today.

      The forecast was raised due to an upsurge in cargo transportation, he added. The rail operator's net profit soared more than fivefold to RUB 78.45bn (approx. USD 2.70bn) in 2010, according to earlier reports.