In Brief - 2002-09-26

Offshore no more?

The former governor of Russia's central bank, Victor Geraschenko, said at last week's banking conference in Riga that Latvia could soon be removed from a list of offshore countries.

Riga-based Bizness&Baltija reported that the issue would be discussed by Andrei Kozlov, first deputy governor of the Bank of Russia. Kozlov is expected to visit Riga next month. (Baltic Business News)

Ferrari sale

An Estonian man is said to be the most likely buyer of the new Ferrari Modena 360 F1 being sold by the Lithuanian grocery chain Iki.

Iki marketing director Robertas Suliauskas said the Estonian had offered 110,000 euros to 130,000 euros for the sports car, with the final price to be agreed this week.

The Ferrari was the main prize in a 26-week draw campaign for customers in Iki last year and in early 2002 and was won by a Kaunas resident. But she decided to sell the car for no less than 110,000 euros, well below the market price for such a new car.

The car had entered the prize draw after a prominent local media entrepreneur, Hubertas Grusnys, changed his mind after ordering it. (BBN)

Economy still OK

There are no signs that suggest Estonians are overspending or that the country's economy is overheating, according to a consumer market survey by EMOR.

EMOR conducted research throughout the first half of the year after increasing speculation that the economy was in danger of overheating.

Acting on the recommendation of the central bank, the government recently withdrew 1 billion kroons (64.5 million euros) from the largest commercial banks and had the central bank invest them abroad.

But Kaldi Kandla, EMOR's project manager, told the Aripaev daily that although consumer spending had been higher than income since 2000, the gap had been narrowing.

"Income is now increasing at 10 percent, while spending has gone up only 7 percent," said Kandla; "Our consumer study did not prove that consumption in Estonia was growing too rapidly." (BBN)

Yukos officially in

The U.S. energy firm Williams International officially sold its 26.85 percent stake in Lithuania's Mazeikiu Nafta refinery to Russian oil giant Yukos, the Lithuanian national stock exchange said.

Yukos paid $75 million dollars for the stake.

Williams and Yukos also signed an agreement giving Yukos management rights in the refinery.

After the deal Yukos holds a 53.7 percent stake in the refinery, the government will keep 40.66 percent and the remainder will remain in the hands of small shareholders.

Yukos has committed to supply 4.8 million tons of crude a year and to boost oil exports via the Butinge offshore oil terminal, part of the

Mazeikiu Nafta refinery. (Agence France-Presse)

Countryside computers

IT firm MicroLink has won two Latvian state tenders to supply computer hardware and IT solutions worth 1.79 million euros to 51 regional education centers.

The centers will be responsible for distributing the computers to schools around the country, and MicroLink will guarantee on-the-spot maintenance of all equipment.

The company will provide 2,100 computers and more than 200 printers.

Under the second tender, MicroLink will supply four servers and 50 network terminals to Latvia University.

The tenders were part of a major state program for the computerization of Latvian education. (Baltic News Service)

Tolaram's troubles

The Singapore-based Tolaram financial group that controls Lithuanian textile producer Alytaus Tekstile, announced they were looking to sell the company.

The company, which has been bogged down by financial trouble, said it could no longer implement a major investment program at the factory.

"In business, everything can be sold," said Urm Raymand, chairman of Alytaus Tekstile's board.

Tolaram said it had invested 21 million litas (6.1 million euros) by late 2001, mostly second-hand equipment from other Tolaram-owned firms.

If the company goes bankrupt, up to 2,000 employees could lose their jobs, said Romauldas Ginevicius, head of the Lithuanian Privatization Commission.

In the first half of 2002, the textile firm posted losses of 1.77 million litas and turnover was down by 7 percent year on year. (BNS)

Foodstuff buyout

The Estonian subsidiary of Finnish food group Saarioinen Oy has acquired more than 66 percent in the ready-to-eat food producer AS Meleco.

While Saarioinen previously imported foodstuffs from Finland to Estonia, the company's new goal is to launch production of foodstuffs in Estonia.

The acquisition of Meleco fits into that strategy, said Saarioinen Eesti board member Mart Villbaum.

Meleco, which makes frozen pizzas and pre-prepared salads, recorded profits of 670,000 kroons (43,000 euros) on sales of 17.3 million kroons in 2001. (BNS)