State role in Russian economy will shrink - Medvedev

CB sees inflation slowing in July, increased capital inflow in H208

REPORT

FATF approves report on combating money laundering in Russia

OPINION

Russia could see 20% inflation in 2008 – Kasyanov

FINANCIAL POLICY

Medvedev sets priorities in budgetary spending in 2009 – 2011

Over 1 trillion rubles to be put into new state programs in 2009 - Putin

Govt to receive draft program of anti-inflation measures on July 1

Central Bank to offer 20 bln rubles in OBR July 3

City of Moscow to place 5 bln rubles in 50th bond issue on July 2

Duma ratifies Russian-Tajik debt settlement agreement

OFFICIAL COMMENTS

Inflation can be reduced to 6% by 2011 - Kudrin

Extensive world inflation could be around for a while - Korishchenko

Putin praises Deutsche Bank’s Russian activities

STATISTICS

Russian intl reserves up $7.2 bln to $558.7 bln in week to June 20

Russian GDP grows 7.7% in May

Russia posts 0.2% inflation from June 17-23, 8.5% since start of year

Russia to see 1%-1.1% inflation in June – Ministry

Fixed capital investment growth in Russia slows to 15.3% in May

Banks have 558.2 bln rbs on CBR correspondent accounts on June 27

Russian monetary base up 5 bln rubles to 4364.6 bln rubles

Russian tax receipts rise 36.7% to 4.14 trln rubles in Jan-May

Federal customs revenue tops 1.8 trillion rubles by June 20

RUSSIAN BANKS

MERGERS & ACQUISITIONS, REGIONAL DEVELOPMENT

VTB Bank buying banks in Tajikistan, Moldova

ABM Amro’s Russian subsidiary renamed Royal Bank of Scotland

Yekaterinburg’s SKB-Bank to boost assets nine-fold by 2013-2014

SHAREHOLDER STRUCTURE

Gazprom to cut Gazprombank stake to blocking in 2008

VTB set to consolidate 97% of VTB Northwest

Western investment funds buy 40% of Investtradebank

Bank of Cyprus buying 80% of Uniastrum Bank for $576 mln

Some Russian minorities cut Sberbank stake

LOANS

VTB raises syndicated $1.4-bln loan

UniCredit Bank raises $500-mln syndicated loan

INVESTMENT

VEB could invest 2.5 bln rubles into CJSC Sredny Ural – Sverdlovsk Governor

FINANCIAL INSTRUMENTS

Sberbank places $500 mln in LPNs, coupon at 6.468%

VTB could offer more than $1 bln in Eurobonds in fall

Gazprombank places $500 mln in LPN at 7.933%

Alfa-Bank places $400 mln in Eurobonds yielding 9.25%

UniCredit Bank to place 10 bln rubles in third series bond issue

Promsvyazbank launches road show for Eurobond issue

Promsvyazbank places 5 bln rubles at 9.5%

Absolut Bank will not raise market funds, KBC Group support sufficient

FINANCIAL RESULTS

Sberbank boosts RAS net profit 27% to 56.4 bln rubles in Jan-May

Sberbank to pay 10% of 2007 earnings as dividends

VTB Bank predicts higher net profit in H108 than in H107

URSA bank ups net profit 170% to $66 mln in Q1

CENTRAL BANK

Central Bank chief opposes abrupt changes in Sberbank dividend policy

SHAREHOLDER & BOARD MEETINGS

Sberbank shareholders expand Gref’s powers

Ex-McKinsey chief Rajat Gupta wins seat on Sberbank supervisory board

URSA Bank earmarks $22.7 mln and 181,000 rubles for 2007 dividend payout

RATING ACTIONS

Fitch affirms City of Moscow at ’BBB+’; outlook stable

S&P upgrades Russia’s Samara region

S&P upgrades Republic of Tatarstan

Fitch Assigns Sberbank’s $500 mln Eurobond issue Final ’BBB+’ Rating

Fitch rates VTB Bank’s LPN expected ’BBB+’

Fitch rates Promsvyazbank LPN expected ‘B+’,

S&P affirms Ingosstrakh Insurance Co. at ’BBB-/ruAA+’; Outlook Stable

NONBANK FINANCIAL INSTITUTIONS

Germany’s VR Leasing plans to invest 100 mln euro in development in Russia for 2008

TRENDS

DOLLAR CONTINUES TO SLIDE

OFZ MARKET LACKS COMMON TREND

RUSSIAN EUROBOND QUOTES TUMBLE

STOCK MARKET FALLS BACK TO EARLY MAY LEVELS

STOCK INDEXES

CIS AND THE BALTIC

UKRAINE

Fitch rates Ukraine’s Eurobond ’BB-’

BELARUS

National Bank of Belarus to raise refinancing rate to 10.25% as of July 1

KAZAKHSTAN

NBK to lower refinancing rate from 11% to 10.5% as of July 1

Too many tax benefits and preferences is a weak point of Kazakhstan’s tax system - World Bank

FMO lends $25 ml subordinated loan to Bank CenterCredit

UZBEKISTAN

Uzbekistan bank to borrow $30Mln from China’s Eximbank

Nb: This news report features only the headline of each news