'Russian CNBC' Plan in the Works

RosBusinessConsulting will bring Russia its own version of CNBC and Bloomberg television next year with a channel offering 18-hour-a-day business coverage, the company announced Tuesday.

Some $3 million to $5 million will be invested into the channel, tentatively called RBC TV, during the first year, RBC general director Yury Rovensky said.

He said RBC hopes to fill a niche not covered by the popular business channels CNBC and Bloomberg.

"The priority will be Russian business news, which Bloomberg gives very limited coverage," Rovensky said.

The reports will be in Russian and offer commentary and expert opinions in addition to news, he said.

RBC TV is to start operating in the first half of 2003 and target the wealthier segment of the Moscow and St. Petersburg business community.

The channel will be broadcast on satellite or cable television. RBC is currently holding negotiations with NTV Plus and Kosmos TV.

Rovensky said RBC is looking to attract investors to the project. "This project must become profitable in the foreseeable future," he said.

The decision to set up the channel was made by RBC's board on Friday.

Analysts greeted the announcement of the channel with skepticism.

"I don't think they will manage to create something even close to Bloomberg. They just won't have enough news," said Panov Philip, who handles domestic sales at Renaissance Capital.

"The problem is that there isn't very much of interest to report about in Russian business yet, and when there is, companies don't want to disclose it," said Natalya Orlova of Alfa Bank.

Tuesday's announcement comes about a month after RBC successfully tapped the local market with an initial public offering. The IPO of a 16 percent stake was about 2 1/2 times oversubscribed and put RBC's market capitalization at $83 million.