Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of Headline News

COVER STORY

"World system of financial security" inadequate – Medvedev

Two energy cooperation documents signed during Chavez’ Russia visit

Gazprom, Eni agree deal on Arcticgas, could work together on offshore projects

Investment in exploration in Kamchatka to rise 300%, pipeline network taking shape

Resources Ministry proposes geological strategy to 2030

POLITICS. ECONOMY

CB should be able to lend without security – Putin

Russian banks may refinance their foreign debts with VEB loans – Putin

Global financial crisis will not effect Russia’s long-term development plans – Putin

Russia needs to develop sustainable national economy – Putin

Central Bank may compensate banks for losses on interbank credit market - Putin

Experts develop foundation of Russia-Ukraine energy relations – Putin

Russian regulator acts to stabilize markets

Crisis highlights need for exchange consolidation – regulator

Regulator not to allow short selling soon

Regulator proposes Central Bank monitor, provide liquidity for brokers

Central Bank may ease requirements on loan collateral

Financial market support measures could add 1-2 pp to inflation – Central Bank

Russian financial markets crisis has peaked, liquidity problems could last 15 mths – CB

Lending still up in Russia despite crisis

Econ Ministry stands by 11.8% Russian inflation forecast

Customs Service provides 3.5 trln rubles to budget in 9 mths

Russian money supply expands 2.8% to 16.2 trln rubles in August

Russian international reserves up $3.4 bln in week

Russia had 0.3% inflation for Sept 23-29, 0.8% in month – Rosstat

Russia’s federal budget surplus rises to 2.119 trillion rubles in 7 mths

Russian consolidated budget surplus at 3.074 trln rubles in Jan-July

Russia’s Welfare Fund at $48.7 bln, Reserve Fund - $141 bln

Central Bank could revise Russia inflation forecast up to approx 12%

CIS

Ukraine’s current account deficit surges 270% in Jan-Aug

Sberbank provides $400 mln loan facility to Ukrainian subsidiary

National bank to keep Ukrainian currency steady

Kazakh has 18.2% inflation in Sept at annual rate

IMF lowers economic growth forecast for Kazakhstan to 4.5%

Kazakh banks largely unscathed by liquidity crisis - MinFin

Kazakhstan posts 0.6% inflation in Sept, 8.1% since start of 2008 – PM

IMF welcomes Kazakhstan’s plan for Asset Stabilization Fund

Belarusian state debt shrinks 2.2% in Jan-Aug

National Bank of Moldova lowers refinancing rate to 1&%

Armenia posts 0.5% inflation in Sept, 4.2% since start of 2008

Armenia’s GDP up 10.3% in Jan-Aug

COMPANIES & MARKETS

ENERGY & RESOURCES

Russia, Ukraine sign gas cooperation memorandum

Putin: Russia- Ukraine interaction may be anti-crisis weapon

Russia worried by Ukraine gas transportation system – Putin

Ukraine, Russia to switch to market prices for gas, transit within three years – Tymoshenko

Gazprom, Naftogaz switching to direct relations due to debt payoff

Gas memorandum agreed by Russia, Ukraine to serve as basis for Gazprom-Naftogaz deal

Imported gas price for Ukraine will not exceed $250-300 per 1,000 CM – Naftogaz chief

Gazprom to draft long-term exploration, production program for outside CIS

Gazprom to use internal funds to pay off large chunk of 2007 loans

Russian gas hits $500 in Europe – Gazprom chief

Gazprom, E.ON setting up JV to sell gas from Yuzhno-Russkoye field

Е.ON to pay for Yuzhno-Russkoye stake with Gazprom shares

Gazprom Neft beats forecasts, boosts US GAAP earnings 84.5% to $2.2 bln in Q2

TNK-BP shareholders achieve final settlement of all disputes

BP Russia chief informs Russian ministry about resolution to TNK-BP shareholder dispute

Peattie wins seat on TNK-BP board

Itera could shelve IPO until late 2009-2010

Eni to begin drilling first exploration well in Russia

Eni mulls Russian offshore projects

RZD to invest 9.6 bln rubles in Oil for China project in 2009

Medvedev, Merkel to discuss political support for Nord Stream project

Gazprom Neft, Sibir Energy could buy Moscow Refinery minorities out for 2.44 bln rubles

Oil may drop below $70 a barrel – Kudrin

Lukoil to close purchase of Italian refinery in Nov - Alekperov

Russia’s oil production down 0.5%, gas up 3.5% in Jan-Sept

Russia cuts oil export to non-CIS 6.4% in 9 mths

Gas exporters could cooperate in response to EU energy initiatives – Shmatko

Countries unrelated to Nord Stream Project should not hinder its development - Medvedev

Miller upbeat about Gazprom-E.ON deal

ESPO to begin operating in reverse Oct 4

Putin happy with ESPO project progress rate

Urals Energy denies reaching agreement on JV at Yakutia oil, gas field

NOVATEK to boost H1 dividends 20%

Russia’s NOVATEK buys back $16 mln worth of GDR

Russia’s Integra signs long-term cooperation agreement with TNK-BP

Sakhalin-1 provides 28 bln rubles to Russian budget – Exxon Neftegas chief

Exxon interested in new production projects in Russia

Eurasia Drilling wins Total’s tender for drilling at Kharyagin PSA

South Korea to take part in energy projects in Russian Far East

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

Russian Tariffs Service to approve 2009 tariffs for energy companies in Oct

Sechin nominated for Inter RAO board

Mosenergo posts 764 mln rubles in IFRS profit in H1

Lukoil consolidates 95.4% in TGK-8

TGK-4 boosts electricity output 11% in 8 mths

OGK-5 net profit declines 5% to 1.13 bln rubles in H1

Fortum, TGK-10 to upgrade power plants with Kyoto project

BSGV opens 700 mln ruble loan facility to TGK-9

Increase in wholesale electricity prices possible - Shmatko

TGK-14 seeks coal acquisition; will revise investment program

OGK-1 mulling three options for raising capital

Rusenergosbyt cleared to buy Mosenergosbyt

Russia’s TGK-1 to start placing 5 bln rubles in bonds in late Oct, early Nov

FGC boosts IFRS sales revenue 12% to 63.8 bln rubles in 2007

METALS & MINERALS

Polyus Gold board votes against share buyback, approves KazakhGold purchase

Polyus Gold to review projects, budget due to global crisis

Polyus Gold posts H1 IFRS earnings of $132.4 mln

Prokhorov wants to withdraw from or sell joint assets with Potanin

Norilsk Nickel net profit down 33.2% in H1

Norilsk Nickel subsidiaries buying 8.7% of company’s shares

Norilsk prepared to meet all domestic market demand for cobalt, palladium

Polymetal to focus on organic growth for now

Econ Ministry suggests scrapping import duty on imported scrap

Anglo Platinum to increase stake in JV searching for PGM on Kola Peninsula in Q3

TSG to start production at Asacha field in Q3 2009

Amur Minerals seeking Russian partner to develop Far East copper, nickel deposits

UMMC to invest 8 bln rubles in Altai polymetal deposit by 2013

Kinross taking cautious approach to acquisitions in Russia

Leviev mulling strategic investor for gold projects

Petropavlovsk Mining to pump $4 bln into Far East projects

METAL GOODS & ENGINEERING

MMK says buyback possible

Russian Machines divests Magna International holdings

Avtovaz, Renault to continue negotiations on IzhAvto acquisition - sources

Russia’s Avtovaz boosts Lada sales 1% in Jan-Sept

Avtovaz, Renault sign license agreement

IT & TELECOMS

Russia’s MegaFon requests clearance to acquire SMARTS

Russia’s IBS Group boosts FY US GAAP earnings 42.3%

Mobile phone retailer Svyaznoi could sell 15% stake to investor

Russia’s Sibirtelecom confirms plans to place $100 mln in CLN before end of 2008

Russia’s Sibirtelecom expects IFRS earnings to grow 32% in 2008

Sibirtelecom forecasts 10% increase revenue from cellular operations in 2008

TRANSPORT

Russian Railways to invest 1.6 trln rubles in Far East to 2030

Russia’s Transaero in talks with Airbus on purchase of 5-6 A350 or A380

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Russia’s Nutritek to see revenue grow 15% per year in 2009-2012 – analysts

Russia’s Razgulay fully places 2 issues of exchange bonds for 1 bln rubles

Russia’s Razgulay places exchange bonds at 87.37% of face value

Ehrmann might sell business in Russia, sources say

PepsiCo offers juice maker Lebedyansky minorities 2,165 rubles per share

Synergy ups net profit 49% in H1

Russia’s Synergy could hold secondary listing in London

Synergy subsidiaries to borrow up to 350 mln rubles from VTB

Russian cheese producer to invest 5.2 mln euros in production modernization

CHEMICALS & pharmaceuticals

Mineral fertilizer producers endorse price formula for supplies to Russian market

Russia’s Acron boosts H1 dividends by over 500%

SIBUR, Amtel end tire asset tie-up talks

CONSUMER GOODS. RETAIL

X5 Retail buys 49,600 GDRs for options program

CONSTRUCTION & PROPERTY

Russian developer PIK boosts H1 IFRS earnings, sales

LSR Group boosts H1 revenue, profit plummets

FINANCIAL & BUSINESS SERVICES

MICEX board approved Korishchenko as acting president

Financial crisis debates should not be limited to G8 – Russia

Kudrin hopes state won’t have to buy shares on market

Big Three banks get money market limit of 60 bln rubles – Ulyukayev

All Russian banks allowed to average reserve requirements

Russian CB not to adjust bi-currency limits soon

CB could adjust 2008 capital inflow forecast

Professional participants could get liquidity injections – CB

Sberbank increases interest rates on retail loans on Oct 1

Sberbank signs $1.2-bln syndicated loan deal

VEB raises $200 mln loan from Export-Import Bank of Korea

VEB to partly refinance Russian banks’, companies’ debts to foreign entities until end of 2009

VEB to refinance corporate, banking sector foreign loans at LIBOR+5% minimum

VEB to be released from debt servicing function in 2016

Gazprombank could open $100 mln-$150 mln loan facility to Trust National Bank

Gazprombank to start placing 10 bln rubles in bonds on Oct 6

VTB net profit down 30% in 9 mths

VTB Bank Austria delays $300 mln syndicated loan owing to capital markets crisis

Zenit Bank to place 8 bln rubles in two bond issues Russian Railways: new borrowing to refinance debt not needed – Yakunin

Moscomzaim to raise 113 billion rubles in bonds in 2009

Moscow River could arrange $150-mln CLN placement for Uralsvyazinform

Promsvyazbank board to set start date and value of additional share issue in Oct

Volume of IPOs by Russian, CIS companies in Q3 lowest since 2004

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

DOLLAR GAINS ALMOST 1 RUBLE

GOVERNMENT SECURITIES

OFZs fail to demonstrate unified vector for week of Sept 29-Oct 3

EUROBONDS CONTINUE TO SLIDE

STOCKS

BEARS STILL DOMINATING RUSSIAN STOCK MARKET

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS