Weekly news:

INDICATORS

Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of headline news

COVER STORY

Russian GDP to decline 8.5% in 2009, grow 0.1% in 2010 - Economic Development Ministry

Russia invites Turkey to join South Stream

analysis

Fitch says global economy stabilizing; medium-term fiscal challenge ahead

Russia needs oil prices of over $80 per barrel to keep ruble stable – Alfa-Bank

POLITICS. ECONOMY

Russian international reserves up $3.4 bln in week

Russian inflation at 0.2% from June 23-29, 0.6% in June

Russian industry could plummet 12.5% in June - analysts

Russian budget deficit could exceed 6% in 2010 – Kremlin aide

Russian external debt shrinks to $451 bln in Q1 – Central Bank

Russia interested in purchasing IMF bonds - Dvorkovich

MinFin considering ways of raising foreign lending in 2010

MinFin planning to present legislation on a state financial agency in August

COMPANIES & MARKETS

ENERGY & RESOURCES

Gazprom planning $1.5 bln in Eurobonds, partly for Sibir Energy takeover – sources

Russia, Azerbaijan ink deal for sale of Azeri gas

Putin invites Shell to take part in Sakhalin-3, -4 projects

Nord Stream’s German partners ready to provide stake for Gaz de France

EU ties aid for buying Russian gas to reform in Ukraine’s gas sector

Oil prices overheated, demand remains low – Kudrin

Gazprom, Itochu execs discuss Vladivostok LNG projects

Oil export duty rises to $212.6 per tonne July 1

Russia needs oil prices of over $80 per barrel to keep ruble stable – Alfa-Bank

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

Energy Ministry to submit long-term power capacity market concept in July

OGK-1 not shelving IPO plans, raises net profit forecast for 2009

Inter RAO, Korea’s KEPCO sign memorandum of mutual understanding

Growth in Russian electricity charges could be minimal in 2010

METALS & MINERALS

Ministry invites companies to prospect for gold, diamond and coal at own expense

Nafta Moskva could buy Polyus Gold shares without regulatory approval

Metalloinvest fully pays for license to develop Udokan copper field

Evraz Group buying control of Tula vanadium plant from IMH

Voloshin reelected chairman of Norilsk Nickel board of directors

Gokhran to purchase diamonds worth 12 bln rubles from Alrosa in 2009

Estar forming new company to manage seven steel plants

METAL GOODS & ENGINEERING

Russian shipyards need innovations, production cost managing - Medvedev

Sberbank chief sees no serious competition in Opel deal

John Deere intends to invest $500 mln into joint projects in Russia in 2009-2015

GM’s St. Petersburg plant halts production until Sept after two-day run

GAZ auto maker to lay 6,500 workers off

IT & TELECOMS

Reiman reelected as Svyazinvest board chairman

MTS raising 413 mln euro in loans to develop networks

MegaFon concludes consolidation of subsidiaries

MegaFon mulls VimpelCom share buy - Kommersant

VEB’s Ballo elected to Sitronics board of directors

Sitronics acquires controlling stake in network security developer

TRANSPORT

Russian rail freight plummets nearly 23% in H1 – RZD chief

UTair slashes 2008 dividends

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Moscow, Minsk resolve dispute over meat, dairy supplies to Russia

Russian fish catch up 6.8% to 1.66 mln tonnes in H1

Russian beer sales down 6.5% in Jan-May - Rosstat

CHEMICALS & pharmaceuticals

Uralkali, Russian consumers agree on 20% hike in potash prices in Q3

CONSUMER GOODS. RETAIL

X5 consolidates 100% of Urals-based franchise, buys out 25% for $18 mln

M.Video forecasts zero growth in LFL sales, reduces store openings

Pharmacy Chain 36.6 sees net losses shrink 48% to 320 mln rubles in Q1

CONSTRUCTION & PROPERTY

LSR Group decides against paying dividends for 2008 owing to losses

Deripaska’s Glavstroi to issue 10 bln rubles in bonds to restructure debt

restaurants & catering

Rosinter posts $15 mln in IFRS net losses for 2008

FINANCIAL & BUSINESS SERVICES

Russian banks may need more than $60 bln in recapitalization – Alfa Bank

Minfin disburses 100 bln rubles to boost VEB charter capital

Sberbank cuts interest rates on deposits

Sberbank confirms development plans in Belarus - Gref

Gazprombank raised $120 mln in LPN private placement in May

Gazprombank buys VTB’s Swiss subsidiary for $91 mln

VTB likely to see losses in 2009

VTB chief says CHF Eurobond plans at "fairly advanced stage"

Morgan Stanley and Marshall Capital Partners start managing real estate assets

CIS

Ukraine’s state budget deficit at $357 mln in Jan-May

Belarus receives over $600 million under IMF loan program

Kazakhstan sees 0.4% inflation in June, 3.9% in H1

Kazakh Economics Ministry expects GDP growth in 2009

Kazakh foreign debt down 2.5% in Q1 – Natl Bank

Central Bank of Azerbaijan sees forex reserves contract 17% in H1

Lack of agreements stalling Caspian gas projects - Aliyev

Armenian economy contracts 15.7% in Jan-May

Armenia sees 0.3% deflation in June, 5.2% inflation since start of 2009

World Bank approves $60-mln loan to support Armenian budget

Georgian current accounts deficit contracts 51% in Q1

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

DOLLAR, EURO GAIN GROUND ON RUBLE LAST WEEK

GOVERNMENT SECURITIES

Govt debt market trends up

Eurobonds slide after bright start to week

STOCKS

Investors fail to put stock market back on winning track

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

Little movement in Cbond prices expected this week

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

Agency Interfax