TOP NEWS

Russia’s difficult choice: economic growth or financial stability

OVERVIEW

Kudrin outlines Russia’s economic strategy

Ignatyev gives Central Bank forecasts for 2008

OPINION

Kremlin expert does not see overheating in Russian economy

Banks not facing liquidity problems

Freezing some food prices is a political step - experts

FORECAST

Inflation will start to decline in May-June – ministry

FINANCIAL POLICY

First auctions to place budget funds could be held in mid-April

Finance Ministry to offer 15 bln rubles in OFZ bonds at April 9 auctions

Tax allowances to be restricted for large, mid-size companies

Budget Commission approves tax holidays for offshore projects

OFFICIAL COMMENTS

Govt concerned by foreign debt at Russian companies - Naryshkin

Russia could double GDP if economy grows 7-8% in 2008-2009 – Zhukov

Rosfinmonitoring role may slow bank license revocations - Kudrin

STATISTICS

Accumulated foreign investments in Russia amount to $220.6 bln – Putin

Russia had 1.2% inflation in March, slightly above forecast

Russian intl reserves up $4.6 bln to $506.8 bln in week to March 28

Russian money supply grows 2% to 14.64 trln rubles in February

Core sector growth accelerates to 10.4% in Feb

Russian services sector sees fastest growth in 6 mths – VTB Europe

Russian foreign debt grows 48% to $460 bln in 2007 – CB

Foreign borrowing of Russian banks more moderate in Q1 – Central Bank

Russia’s domestic debt declines 2% in March to 1.3 trln rubles

Ruble strengthens 1.3% in Jan-March

Individual bank deposits in Russia down 0.2% in January – Rosstat

Federal customs revenue 6.2% above target in March

Russian real pensions up 21.4% year-on-year in February – statistics

RUSSIAN BANKS

M&A AND DEVELOPMENT

Sberbank planning broad expansion abroad in 5 yrs

Deputy Economy Minister Androsov not quitting for Sberbank

VTB makes new offer to buy VTB Northwest shares

VTB 24 expects earnings to jump to $200 mln in 2008 from $30 mln in 2007

VTB 24 to spend some $3 mln on new outlets in Perm territory in 2008

SHAREHOLDER STRUCTURE

VTB 24 to bolster capital with 700 mln rubles worth of property

Orgresbank boosts charter capital 41% to 824 bln rubles, EBRD’s stake shrinks to 8.85%

Allied Irish Bank vying for control of Rodovid Bank – Ukrainian newspaper

LOANS

VEB to loan RZD 62 bln rubles in 2008

MDM Bank could receive up to $385 mln in loans from IFC

INVESTMENT

VEB board approves acquisition of INTER RAO blocking stake – source

VEB yet to receive official proposal on purchase of NRC stake in Ilyushin Finance

VEB to invest 30 bln rubles into Tambov-based projects

FINANCIAL INSTRUMENTS

VEB allocates $1.29 bln for Eurobond payment

VEB could extend timeframe for depositing available funds in banks

Bank of Moscow could borrow $1 bln in H108

FINANCIAL RESULTS

VTB Q1 net profit down 56.5% to 1.166 bln rubles

Hike in VTB dividend payments could be warranted – official

Sberbank had $4.9 bln IFRS earnings in 2007 – Gref

Uralsib Bank posts IFRS net profit of 2.6 bln rubles in 2007

Vozrozhdenie Bank more than doubles IFRS net profit in 2007

Promsvyazbank boosts IFRS assets 60%, earnings 43% in 2007

CENTRAL BANK

Russia had estimated $22.8 bln net capital outflow in Q1 - CB

RATING ACTIONS

S&P upgrades Bashkortostan to ’BB+’ with Stable Outlook

S&P raises Ufa ratings to ’BB-/ruAA-’ with Stable Outlook

NON-BANK FINANCIAL INSTITUTIONS

Russia can be admitted to Green Card insurance system in 2009

Moscow Stock Exchange to start regular trading in agricultural products next week

TRENDS

STOCK INDEXES

CIS AND THE BALTICS

UKRAINE

National Bank of Ukraine boosts international reserves 2.4% in March

Hungary’s OTP Bank to raise capital of Ukrainian bank 70%

Moody’s places Ukraine’s ratings under review for possible upgrade

Moody’s reviews twenty-two Ukrainian banks for possible upgrade

S&P rates Lugansk’s proposed 50-mln hryvni bond ’B/uaBBB+’

BELARUS

Belarusian gold, forex reserves reach $5.5 bln

National Bank of Belarus to lower refinancing rate in Sept

KAZAKHSTAN

Kazakh inflation 0.6% in March

Kazakhstan to keep refinancing rate at 11%

Kazakh gold and currency reserves up 1.8% in March

Caspian Bank raises $100 mln IFC loan

UZBEKISTAN

Russia’s Ingosstrakh acquires Uzbekistan’s Standard Insurance Group

Uzbek-South Korean bank boosts assets 21% in Q1

KYRGYZSTAN

Kyrgyz govt, National Bank expect GDP to grow over 8% in 2008

IFC invests $63 mln in projects in Kyrgyzstan

AZERBAIJAN

National Bank of Azerbaijan boosts currency reserves 6% in Q1

Direct foreign investment in Azerbaijan to total $10 bln in 2008-2011

World Bank endorses $476 million loans for Azerbaijan

ARMENIA

Armenia sees inflation of 4.8% in Q1

Armenia plans limits on cash transactions beginning in 2009

LATVIA

Latvia to see average annual inflation of 13%-15% in 2008 – PM

ESTONIA

Estonia scales down social projects due to expected budget deficit

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Agency Interfax