Weekly news:

INDICATORS

Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of headline news

COVER STORY

Russian economy well prepared for lengthy external shocks - Putin

Global shocks expose Russia’s weaknesses – Fitch

S&P changes Russia outlook to negative from stable

ANALYSIS

Sechin not offering any concessions

POLITICS. ECONOMY

G20 finance ministers to meet in Brazil in early November – Lavrov

Russia interested in maintaining stable oil prices– Medvedev

New financial, structural measures will be taken if necessary to overcome crisis – Medvedev

Russia had zero capital inflow in 9 mths – Kudrin

Shuvalov to head presidential council for financial market development

Shuvalov says VEB loans to refinance debt not tool for nationalization - FT

Finance Ministry won’t buy shares, bonds of foreign cos. with Welfare Fund money

Russia decides to give Belarus $2 bln loan – Kudrin

Chinese premier to visit Moscow to discuss financial crisis

Fixed capital investment growth in Russia speeds up to 11.8% in September

Russian inflation at 0.2% from Oct 14-20, 11.2% since start of 2008

GDP per capita may grow to $30,000 by 2020 – ministry

Gold in Central Bank reserves up 1.9% in Sept

CIS

S&P lowers Ukraine ratings, outlook negative

Yushchenko vows Ukraine will pay off foreign debts

Ukrainian government to look to IMF for assistance - Tymoshenko

Ukraine boosts iron ore exports 19% in 9 mths

Moody’s changes Ukraine outlooks to stable from Positive

Belarus asks IMF for $2 BLN stabilization loan

IMF sends mission to Minsk to discuss loan

Kazakhstan’s current account surplus at $6.5 bln in H1

Kazakhstan to get $15 bln in investment before year-end - PM

Turkmenistan to set up stabilization fund

Azeri government forecasts GDP growth of 25% by 2013

COMPANIES & MARKETS

ENERGY & RESOURCES

Russia, Iran, Qatar create leading troika of gas OPEC

Russian oil not expected to drop below $70 in 2009 – Kudrin

Govt studying cut in oil export duty – Sechin

Energy will top agenda during Chinese premier’s visit to Moscow

Russian Energy Ministry forecasts drop in oil production of 1 million tonnes

Russian oil cos could invest 1 trln rubles in Euro-standard fuel production by 2012

Russia ups coal production 6.9% in 9 mths – Rosstat

Gazprom, CNPC want talks on gas shipments to be intensified

Gazprom board to examine spending issues at meeting on Oct 28

Gazprom net profit up 30% in Q1

Gazprom’s short-term debt at $12 bln at end of Q1

Gazprom to continue exploration on Indian shelf despite dry holes

ConocoPhillips predicts Lukoil reduced US GAAP net profit 14% to $2.1 bln in Q3

Lukoil yet to appeal to VEB for funds to repay debt – source

Lukoil to continue fuel price cuts

Shtokman estimated to require $15 bln-$20 bln to 2014 - Zubkov

Dragon Oil reduces 2008 capex plan

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

Rosatom expects to receive controlling stake in Inter RAO soon

Energoatom, JNPC sign contract on parts’ deliveries to Tianwan NPP

Inter RAO’s sales revenue for 2008 to top 1.5 bln euro - CFO

Inter RAO to hit Latin American, African, S.E. Asian markets soon - Sechin

UC RUSAL confirms it received Interros proposal on support of TGK-3 spin-off

OGK-3 closes deal to acquire 25% minus one in RUSIA Petroleum

IES Holding to finance TGK-6 investment program in full despite crisis

Russia’s TGK-7 general director stepping down

Bank of New York Mellon launches Lenenergo GDR program

Mosenergo, Siemens sign equipment contract for CHP plant

Renova’s electricity subsidiary raises 330 mln euro for construction of power station in Italy

Fortum Russia loses 39 mln euro in Q3

METALS & MINERALS

Russian govt commission recommends zero import duties on ore for ferroalloys

Polymetal silver production down 7% in Q3; gold up 14%

Polymetal can raise financing if needed – CEO

RUSAL having difficulty refinancing $4.5 bln loan, delays a payment until end Oct – FT

MMK redeems $300 mln in Eurobonds

MMK posts net loss of 3.8 bln rubles for Q3, steel down 3.6%

Alrosa could slash diamond sales 30%

Buryatzoloto reduces gold production 2.6% in 9 mths

Ukrainian steel industry expects to produce 12% less roll in 2008

METAL GOODS & ENGINEERING

Russian car production soars 28.8% in Sept – Rosstat

Kamaz expects H1 net profit to rise 21%

GAZ expects 14% decline in H1 net profit

CHTPZ Group’s pipe mills see profit fall in Q3

IT & TELECOMS

Sistema puts all planned deals on hold - Yevtushenkov

FAS does not allow Google to buy Begun from Rambler Media

MTS places bonds totaling 10 bln rubles

Rostelecom organizes Point of Presence in Tokyo

Tele2’s Russian revenues up 42.6% in Jan-Sep

Ukrainian govt proposes restarting privatization of Ukrtelecom

TRANSPORT

Russian Customs Service to demand additional tax payments from three airlines

Freight turnover up 3.1% in Jan-Sept - Rosstat

Russian rail freight transport down 1.8% in September

The Airlines of Russia to move 20 Mln people per year by 2012 – Rostekhnologii

RZD, Skorostnye Magistrali, Spain’s INECO ink cooperation deal

RZD, Transmashholding and Grupo DANOBAT sign partnership memorandum

Aeroflot requests 25% stake in S7 Airlines, expects to acquire whole company

S7 submits information to Rosaviatsia in bid for state support

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Russian govt buys 91,400 tonnes of grain in interventions this week

Russia boosts meat production 8% in Jan-Sept

Russian agricultural production up 6.5% in Jan-Sept

Agriculture Ministry increases cuts to poultry import quota for 2009

U.S. ambassador blames Russian protectionists over U.S. poultry issue

Citibank to guarantee Lebedyansky’s 8.4-bln-ruble buyout offer to minority shareholders

Russia to ban import of dairy, meat products from 20 Belarusian suppliers from Nov 1

Uzbekistan to reduce cotton planting 5.4% in favor of grain crops

CHEMICALS & pharmaceuticals

Russia’s EuroChem signs agreement on $1.5-bln syndicated loan

UralChem boosts H1 IFRS earnings 17-fold

Russia’s UralKali boosts earnings 370% to 23.3 bln rubles in Jan-Sept

UralKaly increases potash fertilizer output by 7.3% in 9 mths

Russia’s Kazanorgsintez sees IFRS earnings fall 82.5% in H1

CONSUMER GOODS. RETAIL

Russian retail sales grow 15% in Jan-Sept

Russia’s Pharmacy Chain 36.6 could start closing stores due to crisis

Russia’s Parliament Group to invest $10-$15 mln in production before 2011

X5 Retail to reduce office staff 30%; freezes store openings in 2010-2011

Sberbank tightening grip on Mosmart – source

Vester lowers 2008 turnover forecast to 19.4 bln rubles

FINANCIAL & BUSINESS SERVICES

Russian international reserves down $14.9 bln in week

State banks promise loans for priority sectors

Finance Ministry places 21 bln rubles in one-week deposits at 8.02%

Central Bank raises correction coefficients for assets securing loans

CB lowers 2008 current account surplus forecast to $98.9 bln

Central Bank expects narrow monetary base growth to slow to 14-22% in 2009

Cut-off price in unsecured loans auction at 9.5% annually

Russian banks boost deposits at Central Bank by 57% in September

CB places 388 bln rubles among banks at unsecured loans auction

Foreign stake in Russian banking system rises to 28% in Q3

Banks get 162.36 bln rubles in budget funds at auction

Sberbank boosts H1 IFRS earnings 40% to 67 bln rubles, above forecast

VEB receives 175 bln rubles from Welfare Fund to invest in Russian stocks

VTB to inject $500 mln in subsidiaries abroad

VEB gets applications for $100 bln in loans; will provide money soon to VTB, RSHB

Sberbank says it will continue lending to viable developers, retailers

Sberbank reduced investments in securities in H1

Sberbank gets first tranche of subordinated loan from CB for 150 bln rubles

Moody’s lowers ratings for 12 Ukrainian Banks

Fitch lowers ratings on 10 Ukrainian banks

Moody’s says outlook negative for Kazakhstan’s banking system

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

Dollar steps up gains, hits 2 and a half year high for week of Oct 20-24

GOVERNMENT SECURITIES

RUBLE-DENOMINATED STATE BONDS MARKET REMAINS VOLATILE LAST WEEK

Russian Eurobonds hit six-year low for week of Oct 20-24

STOCKS

RUSSIAN STOCK MARKET HITS NEW LOWS

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

NEGATIVE TREND SET TO PERSIST IN CORPORATE BOND MARKET

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

Agency Interfax