Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of Headline News

COVER STORY

Fridman slams BP as TNK-BP dispute looks headed to court

Administrative charges initiated against Dudley, TNK-BP Management

OPINION

Ministry should focus on accelerated advancement of power sector - Putin

Russia does not fear drop in oil prices - Kudrin

Mandelson hopes to see Russia in WTO by November 2009

ANALYSIS

MMK, NLMK to benefit if govt backs down on steel duties - analysts

POLITICS. ECONOMY

Russian monetary base up 91.9 bln rubles to 4359.6 bln rubles

Federal customs revenue tops 1.8 trillion rubles by June 20

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

Russian GDP grows 8.5% in Q1 2008 – Rosstat

World Bank president praises Russian economy

Russia’s early repayments to World Bank unlikely this year

Russia will increase its contributions to World Bank – Putin

Russian OECD membership talks to last more than 2 yrs – ministry

Russian intl reserves up $2.4 bln to $551.5 bln in week to June 13

Russia could see 12% inflation in 2008 – CB

Kudrin admits difficulty of keeping inflation under 10.5% forecast

State spending won’t exceed 18% of GDP in 2009-2011 – Kudrin

Several hundred pyramid schemed closed in Russia since early 1990s – Interior Ministry

U.S. treasury secretary will come to Moscow to mull mutual investment in June

ECHR decision on Lebedev comes into force

COMPANIES & MARKETS

ENERGY & RESOURCES

Russia ups gas, electricity and coal production in 5 mths, oil down – Rosstat

Russian government plans to review oil export duties more often

Gazprom Neft readies five bond issues totaling 35 bln rubles

Lukoil uses $1 bln loan to retire debt from Nelson Resources acquisition

Gasunie acquires 9% stake in Nord Stream

Tatneft wants discount loans for bituminous oil producers

Anti-monopoly service opens case into growing aviation fuel prices

Medvedev demands strict meeting of deadlines in laying ESPO

Construction to begin on second phase of ESPO pipeline in Dec 2009 – Transneft

Sakhalin Energy raising $5.3 bln from JBIC, bank consortium for Sakhalin- 2

LNG project on Yamal could be structured as Shtokman – Gazprom

Poland reiterates opposition to Nord Stream

Gazprom, E.ON hold positive talks in St. Petersburg

Gazprom, WIEH to extend gas supply contract for 35 yrs

Gazprom’s export policy will not hinder Russia’s entry to WTO – negotiator

Gazprom wants to replace RosUkrEnergo on Polish market - Warsaw

Gazprom pledges stable deliveries to Poland regardless of RosUkrEnergo’s future

TNK-BP plans IPO in oilfield service assets

Ex-Gazflot chief named to head company that holds Shtokman license

Kyiv preparing symmetrical response if Russia ups gas price

Ukrainian govt insists severance of PSA with Vanco was lawful

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

RUSAL management backs Norilsk electricity spin-off

Electricity exports could top 11.8 bln rubles in 2008 - Inter RAO

Irkutskenergo plans to place 5 bln rubles in bonds over five mths

Irkutskenergo maintains 2007 dividend at 2006 level

OGK-6 net profit at 1.547 bln rubles in 2007

RAO UES reduces stake in Inter RAO to 64.5%

Onexim to take part in electricity system realignment - Kommersant

OGK-1 likely won’t be sold before July 1

IES mulls new acquisitions, asset sales

EBRD to finance IES purchase of RCS blocking stake

Regulator denies KT Projects clearance to buy 50.9% of Moscow power sales co

Technopromexport sends first group of experts to Afghanistan

Mosenergo boosts IFRS net profit 240% in Q1

New HydroOGK CEO to be appointed within one month

METALS & MINERALS

Russia exports 11.8 mln carats in diamonds in Q1 - MinFin

RUSAL says not buying Norilsk Nickel votes

Esmark rejects Severstal offer, rival Essar ups bid

Vekselberg supports idea to form Rusal-Nornikel-Metalloinvest alliance

Polymetal announces sale of Kerimov’s stake to IST, PPF and Alexander Mamut

Expected oversupply of nickel could turn to deficit – Norilsk

Alfa to buy stake in Silver Bear

Severstal plans to acquire Italian hardware factory

Hyundai Steel eyes Yakutia coal

Udokan copper tender put back until Sept 17

Federal govt gains control of diamond miner Alrosa

Verkhotina diamond field owners will have to work with Alrosa – Vybornov

Russia’s Inprom postpones IPO indefinitely

METAL GOODS & ENGINEERING

Russian car production soars 18.8% in 5 mths – Rosstat

EADS: still willing to take UAC stake

Russlegavto to buy passenger car production technologies from China’s Chery

Ford plans to boost Russian sales 17% in 2008

Sukhoi to implement record dividend payout for 2007

IT & TELECOMS

Russian communications market grows 21% in Q1

Subscriber base of Russian cellular operators grows 0.9% in May

Sistema invests $348 mln in India’s Shyam Telelink

MegaFon to launch 3G networks in 25 Russian regions in 2009

MegaFon discussing acquisitions in Kyrgyzstan, Afghanistan

Russia’s MGTS boosts US GAAP net profit 42.3% in 2007

CenterTelecom boosts FY07 IFRS earnings 50%

TRANSPORT

Aeroflot very optimistic about purchase of Czech Airlines

Aeroflot ups FY07 IFRS earnings 21%, below forecasts

Aeroflot forecasts 30% revenue growth, lower net profit owing to fuel costs

Russian Railways might sell 25% of Elteza to strategic investor

Saudi Arabia plans to invite RZD to tender again - embassy

RZD hires Troika Dialog, Morgan Stanley to arrange TransContainer IPO

Yakunin to head RZD for another three years – source

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Food prices growing at faster pace in Russia than in Europe – Rosstat

Russian grain prices dropped 3% last week – Agriculture Ministry

Russian meat production up in Jan-May while bread, milk and sugar output down - Rosstat

Russia’s fish catch up 6.3% since start of 2008

EU specialists hold assessment of Russia’s fish export inspection system

Russia demands safety guarantee for Rokiskio suris cheese

Razgulay sets up agriculture holding co

Razgulay boosts IFRS net profit 33% to 1.23 bln rubles in 2007

Lebedyansky shareholders approve restructuring for Pepsi deal

Scotland’s William Grant & Sons invest $10 mln in whiskey promotion in Russia

Baltika begins exports to Hungary, Romania

Timber export duties impede Russia-EU WTO talks – European Commission

Russia’s Ilim Group aiming for IFRS net profit of $180 mln in 2008

CHEMICALS & pharmaceuticals

Russia plans to purchase foreign assets in pharmaceutical industry – Khristenko

Uralkali to raise potash price for domestic market July 1

SIBUR denies it purchased 51% of Mineral Fertilizers

CONSUMER GOODS. RETAIL

Wal-Mart plans to expand into Russia and India – Financial Times

X5 Retail boosts stake in Urals subsidiary, plans to launch franchise in Ivanov and Kostroma

Azbuka Vkusa shareholders invest up to $100 mln in development of Olive supermarket chain

CONSTRUCTION & PROPERTY

Prokhorov loses blocking stake in Open Investments after share issue

Sistema-Hals ups net profit 350% in Q1 media

Prof-Media may conduct IPO in late 2009

Yandex to open office in Silicon Valley

FINANCIAL & BUSINESS SERVICES

Central Bank to offer 10 bln rubles in OBR June 26

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

Sberbank could borrow $5 bln abroad in 2008 - Gref

VTB Bank placing 1 bln euros in LPN at 295 basis points against swaps – source

Gazprombank begins road show on June 16

Yield guidance on $500 mln in Gazprombank bonds at 350 b.p. to swaps

Russia’s Ak Bars Bank could postpone IPO until 2009

Transcreditbank places Eurobonds at 9% - source

Germany’s Ergo to invest 20 mln euros in Russian business in 2008

AXA buys 36.7% of RESO-Garantia

CIS

Belarussian economy grows 10.4% in Jan-May

Belarus forecasts 10% GDP growth in 2008

National Bank of Belarus forecasts 32%-39% increase in money supply for 2009

Kazakhstan’s foreign trade surplus soars 160% in Jan-April

Kazakhstan’s fixed capital investment up 16% in 5 mths

Kazakhstan ups gold production 3.5% in 5 mths

Kazakhstan ups oil production 7%, gas – 16% in 5 mths

Kazakhstan edges steel output up 0.7% in 5 mths

Kyrgyzstan expands economy 6.7% in Jan-May

Foreign investment in Kyrgyzstan grows 35% in Q1

Tajikistan posts 6.8% inflation in Jan-May

GDP growth slows in Tajikistan in Jan to May given winter energy crisis

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

DOLLAR LOSES OVER 11 KOPECKS

GOVERNMENT SECURITIES

OFZ QUOTATIONS POST VARYING QUOTATIONS FOR WEEK OF JUNE 16- 20

RUSSIAN EUROBONDS SEE MODERATE GAINS

STOCKS

RTS SETTLES AT AROUND 2400

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

Cbond prices likely to edge down in coming week

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