Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of headline news

COVER STORY

Russian companies line up for state cash

Kudrin expects U.S. to take new steps to stop financial crisis

Central Bank raises rate on deposit operations 0.5 p.p.

Power companies draft appeal for discount loans

REVIEW

A thousand and one ways to avoid an offer

SUMMARY

Another private Russian bank turns to the state

POLITICS. ECONOMY

Russian president signs laws to stabilize financial market

Medvedev calls for restoring confidence between lenders, borrowers

Medvedev promises to address Federal Assembly soon

Housing Fund should allocate 50 bln rubles to regions – Putin

Putin suggests using mortgage agency funds to help banks, investors

Loans of Russian companies working on domestic market are eligible for refinancing through VEB – Putin

Federation Council approves additional support to Russian financial system

Russian Econ Ministry forecasts Oct inflation of 0.8%-1% - source

Econ Ministry set to submit revised strategy to 2020

Kudrin says liquidity support funds to be issued early next week

Crisis won’t affect ruble rate; will make Russian economy more competitive - Kudrin

Kudrin says stock markets could go on sliding

Trade Ministry submits draft of law on consumer product trade

S&P forecasts Russian GDP growth will slow to 3% in 2009

Russian trade surplus declines 26% in Sept to $13.73 bln

Russian industry grows 6.3% in Sept, above forecast

Russia could fully write off debt of poorest countries

Chubais to adjust Rosnanotech strategy due to crisis

Financial crisis has not affected growth in Russia-China trade - Nabiullina

CIS

Ukraine’s economy and banking system are stable - Tymoshenko

Ukraine’s GDP grows 6.9% in Jan-Sep – State Statistics Committee

Belarusian money supply up 22% in Jan-Sep

Belarusian GDP grows 10.7% in Jan-Sep - Belstat

Belarusian inflation in Sept at 1%, 9.4% since year’s start

Belarusian trade deficit widens 60% in Jan-Aug

Kazakhstan trade surplus up 190% in 8 mths

Kazakhstan boosts GDP 4% in Jan-Sept – ministry

Kazakhstan boosts industrial output 3% in Jan-Sept

Fixed capital investment in Kazakhstan up 8.2% in Jan-Sept

Turkmenistan’s GDP up 23% in 9 mths

Tajikistan sees GDP grow 7.2%, inflation 12.7% in Jan-Sept

Azerbaijan has 0.9% inflation in Sept; 13.9% in 9 mths

Azerbaijan’s GDP up 15% in 9 mths

COMPANIES & MARKETS

ENERGY & RESOURCES

Regulators urge big oil companies to lower prices on oil product

Russian oil production down 0.6% in Jan-Sept, gas output up 1.5% - Rosstat

Ministry to submit final draft of resolution on BPS-2 pipeline by Oct 20

No grounds for renewing RUSIA Petroleum’s Kovykta license – Trutnev

Gazprom plans to finish gas balance to 2020 by month-end

Cost of Caspian Pipeline Consortium expansion grows to $3.5 bln

Lukoil to invest $100 mln to upgrade capacity at Ukhta refinery

TNK-BP investment may total $3.5 bln-$4.5 bln in 2009 – Summers

TNK-BP, Rosneft begin supplying oil from Verkhnechonsk to ESPO

Surgutneftegas not buying up shares, not planning acquisitions – source

Trebs-Titov tender likely in Q1 2009 – Trutnev

Moody’s confirms Sibur’s Ba2 Corporate Family Rating

Raspadskaya lowers coal output by 22% in Jan-Sep

Varyeganneft ups net profit 190% in H1

Krasnoyarsk hydrocarbons auctions canceled

Belarus reduces oil refining 0.6% in Jan-Sept

New welfare fund to control Kazakhstan mining assets

KazTransOil to boost capacity of Atyrau-Samara pipeline to 17 mln tonnes in 2009

Kazakh oil companies still not interested in supplying oil through ESPO – head of KazTransOil

Kazakhstan ups oil production 5.4%, gas 10.7% in 9 mths

Azerbaijan plans 58% increase in gas production in 2008 - SOCAR

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

Russia ups power generation 4.3% in Jan-Sept – Rosstat

Russia nuclear plants boost output 4.7% in 9 mths

IES power stations boost electricity output 6.7% in 9 mths

OGK-3 genco to pay Interros $600 mln for Kovykta, Plug Power stakes

MOESK decides against canceling Eurobonds issue, continues to monitor market

Onexim not proceeding with TGK-4 offer due to strategic investment law

Belarus ready to attract foreign investors for power sector development

Kazakhstan announces tender on $4.7-bln Balkhash power station

Georgia resumes electricity exports to Russia

GDF Suez still looking for stake in Russian electricity

Finland’s Fortum gets more than 93% stake in Russia’s TGK-10

METALS & MINERALS

Russian Duma passes bill to scrap PGM export monopoly at first reading

Prokhorov urges Norilsk Nickel board to reverse $2 bln buyback

Severstal extends PBS Coals offer to Oct 20

UC RUSAL boosts output, revenue in 9 mths

Evraz Group boosts Q3 steel output 32%

Russia’s Mechel boosts steel output 4% in Jan-Sept

NLMK lowers FY sales forecast, could produce less steel than planned

MMK forms subsidiary for major Prioskol iron ore project

Novolipetsk Steel considering loan from VEB

UMMC to invest 820 mln rubles in Uralelektromed refinery expansion

Tuva gold auction called off

Ukrainian ministry drafts new mining & metals strategy to 2012

Kazakhstan edges steel output down 0.8% in 9 mths

Vimetco buys coal mine in China for $31.2 Mln

METAL GOODS & ENGINEERING

Regulator promises to approve Avtovaz bid for IzhAvto purchase

Avtovaz forms subsidiary for possible IzhAvto acquisition

CHTPZ Group could lower 2008 pipe production target

GAZ restarts Gazel assembly line

Atlant-M suspends sales of Chinese cars

IT & TELECOMS

Subscriber base of Russian cellular operators grows 1.3% in September

MTS subscriber base up 0.4% in September

Sistema puts up small share packet in MTS to secure $35 mln loan

FAS clears Sistema to consolidate 100% of Sky Link

Euroset phone sales decline 9.5% in H1, despite strong market

Russia’s Euroset opts not to enter Indian market

FAS consulting with market officials as it considers VimpelCom’s bid for Euroset

TRANSPORT

Medvedev orders urgent measures to adjust aviation fuel prices

Govt approves sale of Refservis blocking stake

Rosaeronavigatsia suspends servicing 9 airlines over debt

Russian Technologies to get 51% of Russian Airlines, Moscow to get 49%

Russian seaports handle 1.6% more cargo in 9 mths

Aeroflot sees H1 IFRS earnings plummet 55% on soaring fuel costs

Aeroflot expects IFRS net profit for 2008 to fall 73%

Aeroflot in talks with investors on Czech Airlines bid

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Decision on compensating fuel costs to farmers must be decided – Putin

Russian grain harvest could reach net weight of 102 mln tonnes – Agriculture Ministry

State to start purchasing interventions for dry milk in May 2009 - Zubkov

Russia could more than double carryover grain stocks to 22 mln tonnes by July 1, 2009

Russia boosts meat, beer output in Jan-Sept; reduces dairy, bread production

Agricultural sector will need almost 900 bln rubles before year-end

SABMiller lowers beer sales in Russia by 4% in Apr-Sep

Baltika forecasts increase of 11% in beer output in Azerbaijan in 2008

Ukraine harvests 47 mln tonnes of grain as of Oct 13

Kazakhstan won’t ban exports of grain from 2008 harvest

CHEMICALS & pharmaceuticals

Pharmstandard boosts revenue 34% to 10.4 bln rubles in 9 mths

Silvinit boosts potash chloride output by 3.8% in Jan-Sep

UralChem shareholders approve 1:5 share split

Cherepovets Azot boosts ammonia output by 6% in 9 mths

Pirelli to begin construction of tire plant in Togliatti in March

EuroChem acquires 75% in sugar beet seed plant

Acron net profit up 228% in H1

CONSUMER GOODS. RETAIL

Regulator allows retailer Dixy Group to float 21.16% of stock abroad

Vester chain’s sales revenue up 80% to 1.24 bln rubles in Sept

Sedmoi Kontinent boosts sales revenue 26% in Sep

X5 slashes prices on one third of products at Moscow and Petersburg Perekrestok stores

CONSTRUCTION & PROPERTY

Russian developer PIK confirms FY08 forecasts

Russian developer RTM could revise SPO date

Nabiullina: financial crisis won’t affect Russia’s housing construction plans

LenSpetsSMU net profit down 5.4% in H1

FINANCIAL & BUSINESS SERVICES

Russian international reserves down $15.5 bln in week

Russia sees inflation of 0.2% from Oct 7-13

Housing Fund to auction deposits totaling 18 bln rubles Oct 16

VEB to consider applications for refinancing of foreign loans in 18 days

VEB buying Globex Bank for symbolic amount

VTB wants to borrow $2.4 bln from VEB in 2008 to refinance foreign loans

VTB plans to cut costs 15%-20% in Q4

MDM-Bank lowers RAS net profit by 55% in 9 mths

Bank of Moscow posts 92.7 mln rubles in net losses for Q3

BSGV opens Uralsvyazinform credit facilities for 1.5 bln rubles

Raiffeisenbank sees Q3 earnings fall 74% to 532.3 mln rubles

URSA Bank boosts RAS net profit by 59% to 2.3 bln rubles in Jan-Sep

Home Credit Group’s IFRS net profit increases fourfold in H1

Eurokommerz boosts net profit 280% to 2.45 bln rubles in H1

UkrSibbank assets up 15.3% in 9 mths

Sberbank’s Ukrainian subsidiary boosts assets 90% in 9 mths

Belarus ups refinancing rate to 10.75%

EDB delays debut Eurobonds placement, expects investment portfolio to reach 1 bln in 2008

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

DOLLAR CLIMBS, EURO TUMBLES

GOVERNMENT SECURITIES

OFZ quotations vary for week of Oct 12-17

RUSSIAN EUROBONDS CONTINUE TO SLIDE

STOCKS

RTS INDEX PLUNGES BELOW 700 POINTS

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS