Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of Headline News

COVER STORY

IMF, WB see Russian inflation at 14% in 2008

Medvedev, Merkel discuss prospects for energy cooperation

Rosneft ups 2007 dividends, hints at more

Gazprom increases presence in Caucasus and Central Asia

Ukraine denies rumors of fresh Chernobyl incident

ANALYSIS

World automakers rushing to hot Russian market - Standard & Poor’s

POLITICS. ECONOMY

Russia, Saudi Arabia sign protocol on completion of WTO talks – ministry

Russia, Greece may jointly invest in industrial projects in third countries

Putin, Turkish PM, discuss food trade, energy - spokesman

World Bank president to visit Russia on June 16 – source

List of strategic areas with limited foreign investments may shorten – Kudrin

New law on foreign investment helps foreign investors – Putin

Russian government approves larger budgetary expenditures

Russia posts 1.4% inflation in May, 7.7% since start of 2008 – source

May GDP growth in Russia 6.5%, highest so far in 2008 – VTB Europe

Russian trade surplus widens 50% to $70.2 bln in 4 mths - customs

Russian state debt shrinks to 2.392 trln rubles in Q1

Russian budget’s adjusted cash surplus at 6.8% of GDP in Q1

Russian money supply grows 3.7% in 5 mths – CB

Russian intl reserves hit new record at 548.6 billion in week to May 30

Russia could have relatively small amount of capital inflow in May - Central Bank

Rosstat subordinated to Econ Ministry

Olympic budget to be reduced by 33Bln rubles in 2009-2011

Khodorkovsky can seek pardon but his destiny cannot be subject of interstate talks - Medvedev - Part 3

COMPANIES & MARKETS

ENERGY & RESOURCES

Russian oil production down 0.2% in 5 mths

Oil supplies to Russian refineries up 3.4% in Jan-May 2008

Russian oil exports to non-CIS down 5.6% in Jan-May

Gas transit to Europe via Ukraine up 26% in Jan-May

Gasoline price growth in Russia slows to 3.4% in May

CPC reduces oil shipments 8.4% in Jan-May

Lukoil sees no sign of oil prices falling

Lukoil boosts Q1 US GAAP net profit 140% to $3.163 bln

TNK-BP opens representative office in Turkmenistan, reduces GAAP earnings to $5.3 bln

Gazprom not to buy Sakhalin – Komsomolsk gas pipeline from Rosneft

Most mineral developers in Kazakhstan to pay export duty in 2009

Kazakhstan ups oil production 5.7%, gas 12% in 5 mths

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

Govt orders Energy Ministry to launch power capacity market July 1

RAO UES, Tariffs Service resolve disputes on generating capacity market

Russia starts nuclear fuel supplies to India’s Kudankulam NPP

Russia to supply Hungarian NPP with new-generation fuel

Talks on Gazprom-SUEK deal in effect stalled - source

Fortum takes 8 of 11 seats on TGK-10 board

UES power stations up electricity output 5.5% in Jan-May

OGK-1 genco could be sold before UES reorganized – Chubais

OGK-2 managers resigning; Gazprom against compensation

OGK-3 genco boosts FY07 IFRS earnings 53% to 6.7 bln rubles

FFMS allows TGK-9 to place 11.734% stake abroad

UES stake in TGK-11 diluted to 22% after govt stake sold

METALS & MINERALS

Polyus Gold says Onexim offer to reduce shareholders value

Norilsk Nickel delays Activox project in Botswana

Strategic investment law delays Lukoil-De Beers-ADC deal

UMMC buys 51% of Czech Republic’s Aircraft Industries

NLMK boosts Q1 US GAAP earnings 35% to $617.7 mln

Vysochaishy boosts gold production 21% in 5 mths

Three killed in Kuzbass coalmine accident

METAL GOODS & ENGINEERING

Sukhoi plane maker’s profit rises 19% in 2008

Russia’s AvtoVAZ to increase prices for all Lada cars as of June 9

Belarus suggests Russian Machines combination with MAZ truck maker

IT & TELECOMS

Telenor extends ADR swap transaction agreement with ING for Vimpelcom shares

Usmanov finalizes acquisition of 39.3% interest in Megafon

Sistema aims for 9% of Indian mobile market by 2017

MTS aims to acquire 30%-35% share of mobile broadband Internet access market by 2011

Comstar-UTS purchases Interlink Group enterprises

VimpelCom hit with tax claims of $54 mln for 2005-2006

VimpelCom beats forecasts, boosts net profit 117% in Q1

VimpelCom board approves purchase of 49% stake in Corbina Telecom for $404 mln

Russia’s Svyazinvest reduces aggregate RAS net profit 6% in Q1

TRANSPORT

Alitalia unrecoverable – Aeroflot head

American Airlines launches services in Russia

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Russia boosts fish catch 6% since start of 2008

Medvedev establishes new agency for fisheries

Grain prices on decline in Russia – Agriculture Ministry

Russia produces extremely little milk – Zubkov

Baltika starts beer exports to several African countries

CHEMICALS & pharmaceuticals

Russia’s URALCHEM elects independent director to board

CONSUMER GOODS. RETAIL

Dixy posts net profit of $6.8 mln in Q1

CONSTRUCTION & PROPERTY

Russia leading in terms of shopping center space due to open in 2008-2009 - report media

Russian News Service General Director Shkolnik expected to resign restaurants & catering

Russia’s Rosinter aims to increase revenue 39% to $400 mln in 2008

FINANCIAL & BUSINESS SERVICES

Manufacturing sector growth slows in May – VTB Europe

Russian services sector grows for fourth month in a row in May – VTB Europe

Russian PM, VTB chairman discuss creation of intl financial center

Central Bank could increase reserve requirements of capital inflow continues – Korishchenko

Russian law threatens depositary receipt programs - executive

Bank card penetration in Russia set to reach European levels in 1-2 yrs

Russian banks boost assets by 402 bln rubles in April

Russia’s Severnaya Kazna Bank to hold IPO in four years

Britain’s Aegis buying Russian marketing agency AdWatch

Allianz to develop medical clinics and offer international policies in Russia

PPF Group to purchase a third of Nomos-Bank’s additional share issue for 1.4 bln rubles

Deutsche Bank halts several Russian GDR issues over strategic law

Sberbank boosts RAS earnings 27% in 5 mths

Russia’s HCFB to hold Eurobond road show June 5-10, hires Citi as organizer

Russian Agriculture Bank to start placing 5 bln rubles in bonds on June 17 – source

VTB boosts net profit 180% in 5 mths

VTB warns of lower Q1 profit due to securities losses

UniCredit Bank reduces IFRS net profit 12% to 1.5 bln rubles

Russia’s Uralsib Bank sees IFRS net profit plunge 48% to 2.2 bln rubles in 2007

Central Bank licenses AIG’s subsidiary bank

CIS

CIS registers biggest production growth in Jan-April in Azerbaijan – Statistics Committee

Russia sole CIS country with surplus in mutual trade in Q1

Ukrainian state debt edges up 0.19% in 4 mths

Kazakhstan’s gold and currency reserves up 3.4% in May

Kazakhstan lowers GDP growth forecast for 2009-2010

Kazakh president approves budget deficit increase

Uzbekistan posts 2.4% inflation in Q1

Inflation in Azerbaijan should be within 18% in 2008 - PM

Armenian economy grows 9.3% in Jan-April

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

DOLLAR VOLATILE IN EARLY JUNE

GOVERNMENT SECURITIES

LATERAL TREND DOMINATE OFZ MARKET

RUSSIAN EUROBOND QUOTES CONSOLIDATE

STOCKS

RTS INDEX TUMBLES BELOW 2400

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

CORPORATE BOND MARKET TO SEE LIGHT TRADING

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