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    Russia's EuroChem gives up IPO plans for 2007

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    MOSCOW, March 20 (RIA Novosti) - The Russian mineral and chemical company EuroChem has given up its plans to hold an initial public offering (IPO) in 2007, the company's general director said Tuesday.

    EuroChem earlier intended to raise $400 million from the IPO of 15% of its shares in March-April 2007.

    Dmitry Strezhnev said the IPO issue is not currently on the list of the company's priorities.

    Russian companies are thought to be heavily undercapitalized and in need of funds to compete successfully with Western firms.

    On March 13, EuroChem placed five-year Eurobonds worth $300 million at 7.875% of annual interest. The deal is expected to be closed March 21, after all the necessary documents are formalized.

    Established in 2001, EuroChem is a leading agrochemical company in Russia and one of the top 10 global fertilizer producers. EuroChem integrates enterprises for raw materials extraction and the production of fertilizers, organics, feed phosphates, as well as transport divisions and a broad marketing network in Russia and abroad.

    "In our segment of the market, we intend to keep the profitability positions and also join the group of the top five producers in terms of production volume. These are the company's guidelines within its aggressive development strategy," Strezhnev said.

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