Weekly news:

TOP NEWS

Ulyukayev: no plans to abandon policy of gradual ruble devaluation

SUMMARY: Russia’s backbone

SURVEY

Russian ruble: soft landing or freefall

Russian industry could plummet 8.9% in December – analysts

OPINION

Russian economic, political systems have 50:50 chances to endure crisis - Chubais

Russian banks to see growth in loan portfolios slow to 10% in 2009 – VTB 24

Economy to start stabilizing in spring – Alekperov

FINANCIAL POLICY

Medvedev pressing on foreign partners to act on G20 decisions

Those who break laws protecting businesses should be punished – Russian President

Top Russian law office monitoring firings in economy

Five CIS states to set up $10-billion anti-crisis fund

Russia to double aid to developing countries to $400-500 Mln by 2011

Russian banks get 166.78 bln rubles in unsecured three-month loans; cutoff rate at 12.75%

Russian banks take 51.36 bln rubles in unsecured five-week loans; cutoff rate at 12.5%

Housing Fund places 10 bln rubles among banks at 13.79%

CB expands lombard list to include shares, exchange notes

Central Bank to relax reserve requirements on loans for one year

City of Moscow to offer 15 bln rubles in bonds at Jan 14 auction

OFFICIAL COMMENTS

Medvedev: Russia will not see default or denomination

No sharp ruble devaluation – Medvedev

Cooperation with premier is comfortable - Medvedev

Medvedev asks for immediate realization of anti-corruption laws

Budget deficit in Russia likely in 2009 – Kremlin aide

Reserve Fund can cover budget deficit in 2009-2010 - Dvorkovich

Ruble won’t decline abruptly in 2009; forecast at 31-32 per dollar - Dvorkovich

Russia may revise govt borrowing strategy in 1-2 years if oil prices stay low – deputy minister

Russian government against abolishing oil tax, favors differentiation – Sechin

STATISTICS

Russia’s intl reserves grow by record $15.4 bln over week

Intl reserves increase on revaluation, foreign currency deposits by banks - Ulyukayev

Russian GDP up 1.6% in Nov, 6.5% in 11 mths – source

Russian money supply shrinks 2.2% to 13.2 trln rubles in November - CB

Russia’s monetary base up 32.2 bln rubles in week to Dec 22

Russia had 0.2% inflation Dec 16-22, 13.1% in YTD – source

Russian bank deposits at Central Bank highest since Aug 2007

Russian banks more than double unsecured loan debt in one month

Deposit outflow from Russian banks 0.7% in November – CB

Russia customs revenue on target in 2008

RUSSIAN BANKS

MERGERS & ACQUISITIONS, REGIONAL DEVELOPMENT

VTB 24 invests 5.5 bln rubles in branch network in 2008

SHAREHOLDER STRUCTURE

Central Bank registers Rosbank’s additional share issue

Gazprom affiliate set to gain control over Soyuz Bank by end of 2008 - source

LOANS

Sberbank stops issuing retail forex loans

Sberbank to offer credit deferments to citizens suffering loss of revenue

VTB raises 30 bln ruble loan from Central Bank secured with Rosneft veksels

Bank of Moscow raises $177-mln syndicated loan at Libor + 1.5%

Societe Generale opens $1-bln credit facility for Rosbank

EBRD providing $75 mln subordinated loan to Raiffeisen Bank Aval

Uraltransbank to receive $12-mln subordinated loan from EBRD

FINANCIAL INSTRUMENTS

Russian banks get 129.8 bln rubles in unsecured 16-day loans; cutoff rate at 12.5%

First coupon of Mortgage Agency bonds at 10.5%

Absolut Bank preparing two bond issues for 10 bln rubles

TransCreditBank buys back part of $350-mln Eurobond issue from market

FINANCIAL RESULTS

Sberbank earnings plunge to 200 mln rubles in Nov from 10 bln rubles in Oct

Slowdown in deposits could affect Sberbank lending – Gref

Sberbank uses 300 bln rubles of CB loan

Sberbank expects precious metal sales to treble in 2009

Gazprombank net profit down 11% in 11 mths despite high earnings in Oct-Nov

VTB 24 to boost net profit 350% to 7 bln rubles in 2008

CENTRAL BANK

Central Bank to appoint representatives at about 140 banks

Central Bank revokes licenses for 3 banks

APPOINTMENTS & RESIGNATIONS

Central Bank nominates Shvetsov for deputy chairman – State Duma

New KIT Finance board includes RZD’s Novozhilov, RusHydro’s Yushin

RATING ACTIONS

S&P puts Tver Oblast ’BB-/ruAA-’ ratings on CreditWatch Negative

S&P cuts Russian City of Omsk to ’B-/ruBBB’ on higher refinancing risk

S&P withdraws Omsk Region ratings at issuer’s request

S&P lowers Alfa-Bank rating to "??-", outlook stable

Moody’s changes rating outlook on Russia’s HCFB outlook to negative

Fitch rates SarovBusinessBank

NONBANK FINANCIAL INSTITUTIONS

Deposit Insurance Agency passes Moscow Capital bank’s liabilities to Nomos Bank

First coupon of Mortgage Agency bonds at 10.5%

Russian govt to reduce stake in Rosgosstrakh, but remain shareholder

TRENDS

DOLLAR, EURO CLIMB

OFZ MARKET LACKS COMMON TREND

EUROBOND MARKET IN A LULL

GOVT MONEY KEEPS STOCK MARKET AFLOAT

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CIS AND THE BALTIC

UKRAINE

World Bank approves $500-Mln loan to Ukraine

Yushchenko forecasts 1%-1.8% GDP growth in 2008

Ukraine’s new 2009 draft budget has deficit totaling 2% of GDP

Ukraine forecasts 2009 inflation at 9.5%

Ukrainian GDP to decline 4% in 2009 - World Bank

Tymoshenko pushing Ukraine toward default - Yushchenko

Tymoshenko: more banks involved in financial abuses

Tymoshenko insists on NBU chief Stelmakh’s resignation

Ukraine’s Rada expresses no-confidence in National Bank head

Central bank head upbeat about Ukraine’s currency market

Verkhovna Rada dismisses property fund head

Problem loans in Ukraine reach 2.1% in Nov – Natl Bank

BELARUS

Belarus, Vnesheconombank seal cooperation plans with memorandum

VTB, Belarusian government may sign cooperation memorandum in January

KAZAKHSTAN

Kazakh Natl Bank: no preconditions for tenge devaluation

China Development Bank ups credit facility for Kazakh Development Bank by $300 mln

KYRGYZSTAN

Kyrgyzstan forecast 7.6% GDP growth in 2008, 4% in 2009 – minister

GEORGIA

Georgian central bank cuts refinancing rate to 8%

ARMENIA

VTB (Armenia) gets $10 mln loan from EBRD; OPEC to lend $14 mln

LITHUANIA

Fitch downgrades Lithuania to ’BBB+’, Outlook Negative

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

Agency Interfax