Russia recognizes Abkhazia, South Ossetia as independent states

FINANCIAL POLICY

Govt introduces draft 2009-2011 budget to Duma

Govt may release VEB from debt-servicing duties by end-2015

STATISTICS

Russian international reserves up $400 mln in week

Russian M2 money supply shrinks 0.2% to 14.21 trln rubles in July

Russia posts zero inflation from August 19-25 – Rosstat

Russian Econ Ministry predicts 0.1%-0.3% inflation in August

Russian Econ Ministry says GDP grew 6.9% in July

Russian budget surplus could exceed target by 28% in 2008

Regional budgets could see 50-60 bln ruble surplus in 2008

RUSSIAN BANKS

SHAREHOLDER STRUCTURE

Vostok Nafta boosts stake in TCS Bank to 15%

CB registers 31 bln ruble share issue by Russian Agriculture Bank

China’s ICBC to buy Rosevrobank - newspaper

LOANS

BSGV opens credit facility for Ruzkhimmash with limit of 750 mln rubles

FINANCIAL INSTRUMENTS

Promsvyazbank raises $280 mln syndicated loan

FINANCIAL RESULTS

Promsvyazbank boosts IFRS assets 30% to 380 bln rubles in H1

MDM-Bank reduces IFRS net profit by 20% in H1, assets up by 9.6%

Vozrozhdenie Bank boosts H1 IFRS earnings 131%, above forecast

RATING ACTIONS

Fitch ups City Mortgage Bank’s Servicer Rating to ’RPS3+(RU)’

Fitch assigns Probusinessbank’s Eurobond final ’B-’ rating

Moody’s reviews Russian Bank for Development’s Baa2 rating for upgrade

Moody’s gives B3/NP/E+/Baa3.ru ratings to Russia’s Petersburg Social Commercial Bank

TRENDS

Dollar bounces back for week of August 25-29

OFZ BONDS CONTINUE TO SLIDE

EUROBOND PRICES SLIDE, SPREADS WIDEN

SUMMER PLUNGE ON RUSSIAN STOCK MARKET TOPS 30%

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CIS AND THE BALTIC

BELARUS

Belarus budget surplus at 4.2% of GDP in 7 mths

Belarusian banks increase assets 27% in Jan-July

Raiffeisen consolidates 76.5% of Belarus’s Priorbank

KAZAKHSTAN

Kookmin Bank buys 23% stake in Kazakh CenterCredit for $500 mln

SCO banks, EDB sign partnership memorandum

FSA allows Russia’s Vneshtorgbank to open a subsidiary in Kazakhstan

UZBEKISTAN

Uzbek inflation comes to 3.4% in H1

AZERBAIJAN

Hungary’s OTP Group to acquire shares in Azerbaijan’s UniBank

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