Weekly news:

TOP NEWS

CB’s main goal should be inflation targeting, floating ruble - Ignatyev

ANALYSIS

Russia lives up to reputation as world’s most volatile stock market

FORECAST

Nomura lowers forecast for Russian economic decline in 2009 to 7.2% from 4%

FINANCIAL POLICY

Moscow, Caracas ink agreement on founding of Russian-Venezuelan Bank

Minfin to offer exchange of Soviet commercial debt in Q4

OFFICIAL COMMENTS

Russia for new global economic system – Kudrin

Increase in past-due loans won’t lead to banking crisis – Kudrin

Russia seeing few signs of crisis ending, but govt measures to take effect soon – Kudrin

CB could lower refinancing rate in July - Ignatyev

Ignatyev: almost no chance of second wave of crisis in banking sector

CB says ruble could weaken further, but no pre-requisites for this

Transferring budget expenditures from May to Dec could require interest rates hikes – Ignatyev

CB to ease some parameters of currency intervention mechanism

STATISTICS

Russia had 0.1% inflation for June 15-22 – Ignatyev

Russian international reserves up $0.5 bln in week

Russian money supply expands 4.2% to 12.86 trln rubles in May

Russian fiscal revenue down 20% in 5 mths – Tax Service

Russian external state debt declines 4.2% to $38.87 bln in Jan-May

Natl definition money supply fell 5.1% in Jan-May – Econ Ministry

CENTRAL BANK

CB pulls two Moscow bank licenses

Russian banks get 67.7 bln rubles at six-month loan auction; cut-off rate at 13.51%

Russian banks get 25 bln rubles at five-week loan auction; cut-off rate at 13.17%

RUSSIAN BANKS

SHAREHOLDER STRUCTURE

Private individual buys 1.4% of Sberbank

Ignatyev cautious about Sberbank’s possible purchase of Kazakhstan’s BTA Bank

LOANS

Sberbank could recoup most loan provisions in 3-4 yrs by selling collateral – Gref

Sberbank expects restructured loans to make up just over 5% of loan portfolio in Q1

Sberbank loan provisioning to reach 9.5% by year-end

Sberbank to make preterm payment on $1 bln subordinated loan

Rosselkhozbank expands loan portfolio by 17% to 550 bln rubles in Jan-May

INVESTMENT

VEB owns just over 2% of Lukoil – Alekperov

FINANCIAL INSTRUMENTS

Gref: Sberbank’s deposit policy balanced, no plans to modify

FINANCIAL RESULTS

Sberbank profit shrinks 93% to 4 bln rubles in 5 mths

Sberbank forecasts IFRS net profit for Q1 to be equal to RAS results

SHAREHOLDER & BOARD MEETINGS

Sberbank shareholders approve 2008 dividends

Sberbank AGM approves share issue

Rosbank shareholders approve merger with OVK bank

Rosbank board elects Mattei chairman

Gazprombank to pay 1.3 bln rubles in dividends for 2008

VTB to hold meetings with investors in July about placement of Eurobonds in Swiss francs

RATING ACTIONS

Fitch affirms City of Moscow at ’BBB’, Negative Outlook

Fitch rates Saint-Petersburg at ’BBB’; Outlook Negative

Fitch assigns City of Moscow’s two bond issues final ’AAA(rus)’ rating

S&P rates City of Moscow’s bond issues ’BBB’

S&P affirms Samara region, outlook negative

Fitch rates City of Kazan ’B+’, Stable Outlook

NONBANK FINANCIAL INSTITUTIONS

Pamplona consolidates 10% in Chaucer

Moscow places 61st bond issue worth 7.28 bln rubles and 62nd issue worth 12.925 bln rubles

Housing Fund to offer 11.6 bln rubles in 13-day bank deposits

Average weighted rate for placement of Housing Fund resources over 13 days stands at 9.4%

TRENDS

Dollar weakens slight for week of June 22-26, ruble decreases against bi-currency basket

OFZ market quiet for week of June 22-26, trading activity low

Russian Eurobonds correct up, spread still wide

Stock market slide slows as oil prices rise

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CIS AND THE BALTIC

UKRAINE

National Bank chief says further rate cut possible

Moody’s downgrades ratings of Privatbank, Savings Bank, Ukreximbank

BELARUS

National Bank expands corridor of Belarusian ruble against currency basket

EBRD could increase financial support to Belarusian banks and companies by 170% in 2009

Belarus asks EU of financial assistance – ministry

Minsk hopes IMF will give $1 Bln loan to Belarus

KAZAKHSTAN

S&P upgrades Eurasia Insurance Co. to ’BB-/kzA-’, stable outlook

AZERBAIJAN

Moody’s downgrades International Bank of Azerbaijan to Baa3

MOLDOVA

Russia ready to extend $0.5 Bln loan to Moldova - Putin

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

Agency Interfax