MOSCOW, March 4 Russian companies and banks are
watching events in Ukraine anxiously because they stand to lose
billions in investments and business in the former Soviet
Russian banks are the biggest overseas lenders to Ukraine,
accounting for 12 percent of the sector with about $28 billion
of exposure, including Sberbank, VEB and VTB
Companies with exposure are in the oil and gas sector,
telecoms and metals and mining.
The mainly Russian-speaking eastern regions, which produce
coal, metals, chemical products and combines for nuclear plants,
are among the most heavily industrialised parts of Ukraine.
Following is an outline of some of the big Russian companies
with interests in Ukraine:
METALS AND MINING
Aluminium giant Rusal owns Nikolaev (Mykolayiv)
alumina plant in Ukraine, its second largest alumina asset. It
is functioning normally, according to the company. The company
also owns Zaporozhye alumina and aluminium complex which
suspended work several years ago due to low aluminium prices.
VSMPO Avisma, the world's largest titanium producer, owns a
titanium alloy tubes producer - Vsmpo Titan Ukraine.
Evraz operates a steel mill in Ukraine's
Dnipropetrovsk, sells its goods in Ukraine and ships them to
Russia and the Middle East. Annual capacity is around 900,000
tonnes of pig iron, 820,000 tons of crude steel and 700,000 tons
of rolled products.
Evraz, the biggest stake in which is owned by billionaire
Roman Abramovich, also owns Sukha Balka iron ore project near
Donetsk, with an annual capacity of around 2.5 million tons of
iron ore production. It ships to local plants as well as
Mechel operates a steel mill - Donetsk electro
metallurgical plan (known as DMZ) - in Donetsk. Annual capacity
is around 1 million tons of crude steel a year. Supplies steel
products to more than 30 countries. Mechel group, owned by
billionaire Igor Zyuzin, has been trying to sell the plant back
to its previous owner, businessman Vadim Varshavsky.
Russian telecoms firm MTS is the second
largest mobile operator by subscribers in Ukraine. It had 22.4
million subscribers in Ukraine at the end of September, 2013.
MTS has 12 percent of EBITDA - earnings before interest,
tax, depreciation and amortization - coming from Ukraine
according to a research note from VTB Capital, which estimates
the sensitivity of MTS's 2014 EBITDA is 1 percent for a 10
percent hryvnia, Ukraine's currency, devaluation.
Russian telecoms firm Vimpelcom's Ukrainian
operations accounted for 8 percent of its third-quarter EBITDA,
according to its latest earnings report.
"Visibility over the Ukrainian economic outlook is limited
at this point," VTB Capital analyst Ivan Kim wrote in a research
report. "We note that Ukraine is much more important for
Vimpelcom as a source of cash flow vs. MTS."
A MTS spokesman said Ukraine business contributes around 10
percent to Group revenue and 12 percent to the Group OIBDA.
Networks operate in standard mode.
OIL AND GAS
Russia's largest oil company, Rosneft, could soon
buy Ukraine's Odessa oil refinery, which has been secured by
Russian state bank VTB because of the outstanding debts of the
former owner, Kommersant newspaper said on Monday. Rosneft
already controls Ukraine's second-largest Lisichansk refinery.
Russian mid-sized oil producer Tatneft has been
involved in a legal dispute over ownership of Ukraine's
Kremenchug oil refinery (Ukrtatnafta), Ukraine's largest. The
plant's former managers used armed police to oust managers
friendly to Tatneft, citing a court order, in 2007.
Russian investment group Summa, which owns half of Russian
state grain trader United Grain Company (UGC), plans to build a
grain and container terminal in Ukraine's Mykolayiv region on
the Black Sea when tensions ease, it said on Monday.
(Compiled by Reuters reporters, Editing by Angus MacSwan)