Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of headline news

COVER STORY

Around $200 Bln to be provided to support Russian financial market, economy - Medvedev

Medvedev rules out early resignation

Possible transfer of shares to state a temporary measure – Medvedev

Russian Central Bank expands bi-currency basket’s fluctuation corridor by 30 kopecks

Banker Frenkel gets 19 years in prison for CB deputy chairman murder

Fitch downgrades Russia’s outlook, Kazakhstan’s sovereign rating

POLITICS. ECONOMY

Duma approves extension of presidential, Duma terms in first reading

Russia-EU talks on new partnership agreement may resume Nov 25

Moscow proposes early warning mechanism for emerging financial crises - Medvedev

Number of intermediaries between state resources, companies must be minimal – Medvedev

Russian manufacturers’ overhaul will be financed from internal funds – Medvedev

Russia could invest Reserve Fund assets in IMF drawing rights

Russia-Egypt interaction could be more intensive – Putin

Banks’ corporate egoism must be curbed when state support is provided - Putin

MinFin not to place budgeted funds on bank deposits before year end

Federation Council approves three-year budget

Russia-EU trade turnover grows 26% to 138 bln euro in H1

Russian budget’s cash surplus at 7.8% of GDP in 10 mths

Russian inflation totals 0.2% from Nov 2-10 – Rosstat

Russian Econ Ministry expects 0.8%-1% inflation in Nov, 12.5%-12.7% in 11 mths – source

Capital outflow from Russia approx $50 bln in Oct – CB chairman

Russian international reserves down $9.2 bln in week

Russian CB says more flexible exchange rate possible

Central Bank against return to currency control, intends to use "soft measures" for outflow

Fitch takes rating actions on Russian corporates on sovereign outlook change

CIS

Yushchenko insists on collecting 50 Bln hryvni to stabilization fund in 2009

Ukraine gets $4.5 bln in first tranche of IMF loan

Ukraine’s monetary base up 1.5%, money supply up 0.3% in October

Belarusian trade deficit widens 60% in Jan-Sep

Belarusian money supply up 19.2% in Jan-Oct

Belarus to up refinancing rate to 11% on Nov 12

Belarusian GDP up 10.7% in Jan-Oct

Industrial output in Kazakhstan up 3% in Jan-Oct

Foreign investment in Belarus grows 37% in Jan-Sept

Inflation won’t exceed 20% in Azerbaijan in 2008 – National Bank

Azerbaijan balance of payments surplus to top $10 bln in 2009 – Natl Bank chief

Kyrgyzstan Econ Ministry expects 2008 inflation at 20%-22%

cOMPANIES & MARKETS

ENERGY & RESOURCES

Russia should actively influence world oil price situation – Putin

Europe must decide whether it needs Nord Stream - Putin

Ministries suggest reducing oil export duty validity period to one month– Putin

No plans to re-consider 15-year oil price forecast – Kudrin

Russian govt, oil execs discuss tax changes for industry

Russian energy minister sees no risk of disruption in oil exports this year

Finance Ministry forecasts average oil price in 2009 at $50 per barrel

Russia’s oil export dropped 25% in Nov – Transneft chief

Transneft boosts IFRS net profit 23% in 6 mths

Transneft boosts revenue 20% in Jan-Sept

Transneft mulling construction of pipeline parallel to CPC

Gazprom, IES to ink terms of TGK-7 deal in 2 weeks

Gazprom, BASF begin production at Urengoi field’s Achimovsky deposits

Gazprom to supply Ukraine with at least 55 bcm of gas in 2009

Tatneft boosts net profit 11% in 9 mths

Tatneft lowers oil exports by 3.5% in Jan-Sep

Kuzbass coal production up 3.6% in 10 mths

Lukoil, Rosneft may be next to face fines after TNK-BP, Gazprom Neft

Eni starts drilling at Russia’s Samburg field – source

Kovykta deal to be completed in November - Vekselberg

NOVATEK boosts Q3 IFRS earnings 11%, above forecast

NOVATEK ups RAS earnings 18% in 9 mths

Appointment of new TNK-BP chief to be decided Dec 11 – Vekselberg

TNK-BP might take VEB money for new projects, not debt refinancing - Vekselberg

Ufimsk Refinery more than doubles RAS net profit in Jan-Sep

Britain’s Matra Petroleum in talks on sale of stake in Russian assets

Libyan Oilinvest ready enter Russian oil sector

EC clears way for Ukraine’s SCM, Smart Group to merge mining assets

Naftogaz Ukrainy ups net profit 64% in Jan-Sept

Naftogaz Ukrainy looking for 10-yr contract on gas supplies, transit

Belarus sees oil refining decline 0.6% in Jan-Oct

Kazakhstan intends to buy 3% of CPC from Russia

Kazakhstan boosts oil refining 8.5% in Jan-Oct

Azerbaijan’s SOCAR approves sale of Lukoil stake in D-222 project to GDF Suez

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

Chubais criticizes Onexim, Sintez over buyouts at generating cos

Russia’s TGK-1 boosts revenue 20.6% in Jan-Sept

Sintez sues RWE for $1.41 bln over withdrawal from TGK-2 share deal

TGK-4’s net losses halve to 33.6 mln rubles in Jan-Sep

TGK-7 posts 664 mln rubles in net losses for Jan-Sep

Russia’s TGK-8 posts net profit of 236 mln rubles in Jan-Sept

TGK-14’s net losses in Q3 at 116.5 mln rubles

Russian companies invited to take part in tenders to build NPPs - Egyptian PM

Russia’s OGK-1 genco could hold IPO in 2009-2010 for investment purposes

Rosbank might lend OGK-3 up to 20 bln rubles

Moscow Integrated Power Co expecting zero profit this year

Russian nuclear power plants boost output 3.5% in Jan-Oct

Gazprom wants to revise investment programs at gencos

Sistema to manage controlling stakes in Bashkortostan energy companies

METALS & MINERALS

Russia govt puts zero import duty on ferrous scrap, some types of roll

UC RUSAL proposes four govt representatives for new Norilsk Nickel board

Mechel group’s nickel mining unit sees sales plummet 37% in 9 mths

Mechel’s Izhstal boosts earnings 3.8% in Jan-Sept

Norilsk Nickel’s Stillwater Mining posts profit in 9 mths, reviews plans

MMK could cut planned capex 40% in Q4

RUSAL ups rail shipment of aluminum 7.6% in Jan-Oct

Magnitogorsk steel works not asking state for funding

Metalloinvest’s OEMK boosts RAS earnings 160% in 9 mths

Metalloinvest forms SZ Regionoil to manage oil and gas projects

VTB provides Evraz with 10 bln rubles in financing

Uralnedra sets second auction for iron section in Kurgan region for Dec 26

Yuzhuralzoloto posts 1.6 bln rubles in sales revenue in Jan-Sep

Three Russian gold properties to be offered on Jan 20

Kristall slashes rough diamond procurements from Alrosa

VSMPO-Avisma orders may shrink 30%-50% if aircraft makers buy less titanium

RusAl to build aluminum plant in Venezuela

Aricom, China’s MCC sign memorandum on Russian site construction

Russia’s Trans-Baikal could boost gold production 11%-13% in 2008

Ukraine could probe Russian, Chinese steel imports

Ukrainian steel industry could cut output 12% in 2008

GeoProMining starts developing Zod gold field in Armenia

METAL GOODS & ENGINEERING

Russian govt sets zero import duties for planes with 300 or more seats

Kamaz boosts revenue 22% in 9 mths

Kamaz ups sales 3% in 10 mths

Magnitogorsk halts supplies to GAZ automaker

TNK cuts dividend for 9 months by half

OMK’s Vyksa plant sees pipe output plummet 18% in 10 mths

Pipe maker TMK borrowing 5.5 bln rubles from VTB

Pipe maker TMK appoints new CEO

TMK ups steel pipe shipments 26% in October

Chelyabinsk pipe mill reduces RAS sales revenue almost 20% in 9 mths

Inprom boosts earnings 130% in 9 mths

Sales of foreign cars in Russia down 5.7% in October, up 36% in 10 mths

France’s Nexans to launch cable production in Yaroslavl region on Nov 20

Kazakhstan postpones sale of Kamaz stake

IT & TELECOMS

MTS reduces Q3 US GAAP earnings 21.3%, as forecast

MTS lowers capex forecast for 2008 from $2.5 bln to $2 bln, sales revenue forecast unchanged

Rambler Media boosts Q3 revenue 69%, expects lower Q4 margins

Uralsvyazinform boosts EBITDA 4.3% in Jan-Sept

NWT plans to raise 1.155 bln rubles in loans

Rostelecom reduces RAS earnings 21.7% in 9 mths

TRANSPORT

Russian govt endorses RZD investment program, financial plan for 2009

RZD lowers 2008 net profit forecast by 43% to 5.6 bln rubles

Russian Railways not to reduce borrowing in 2009, puts off Transcontainer IPO

Russian Railways to start placing 15 bln rubles in ninth-series bonds on Nov 19

State Transport Company RUSSIA to lease eight ?-319/320 airlines in 2009

Transfer of Sibir blocking stake to Aeroflot could violate competition laws – FAS

FAS to Transportation Ministry: don’t discriminate in assistance to aviation sector

Primorsk Shipping receives first of seven tankers from Korea’s STX Shipbuilding

Murmansk Commercial Seaport lowers cargo handling 1% in Jan-Oct

UTair flies 14% more passenger in Jan-Oct

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Record crop meets country’s needs, enhances export capabilities - Medvedev

Increase in timber export duties put off by 9-12 months – Putin

Russian govt buys over 1 mln tonnes of grain for Intervention Fund

Russian grain harvest at 114 mln tonnes on Nov 10, up 27 mln tonnes from 2007

Russia to create federal alcohol control service in one month

Russian vodka production down 15% in October

Russia’s fisheries catch to stay at 3.3 mln tonnes in 2008 – Rosrybolovstvo

Russia allows Polish fruit and vegetable imports as of Nov 10

Russia and Israel to introduce new monitoring system for crop imports on Jan 15

Razgulay boosts revenue 35% to 11.5 bln rubles in H1

Baltika net profit down 3.7% in 9 mths

Yerevan Brandy purchases 7% more grapes in 2008

CHEMICALS & pharmaceuticals

UralKali shares plummet almost 20% on worries of government action regarding Berezniki accident

Uralkali boosts revenue 150% in 9 mths

Russia’s UralKali boosts potash fertilizer production 6% in Jan-Oct

Silvinit boosts sales revenue 150% in Jan-Sep

Silvinit may cut 2008 production program 8%

Silvinit may pay 440 rubles a share for 9 mths

Acron boosts consolidated net profit 150% in 9 mths

Fitch downgrades Kazanorgsintez

Veropharm boosts Q3 net profit 40% to $7 mln; below forecast

Kalina sees RAS earnings plummet more than two-thirds in 9 mths

Baikal Pulp and Paper Mill halts production until Feb 10

CONSUMER GOODS. RETAIL

Dixy sets placement price of supplementary shares at $2; could raise $52 mln

Rosbank to lend retailer Seventh Continent $150 mln at 15%

Metro to open 5 stores by year-end; investment may exceed 100 mln euro

BAT Russia boosts cigarette production almost 5% in Jan-Sept

Magnit boosts revenue 49.8% in 10 mths

CONSTRUCTION & PROPERTY

Fitch downgrades PIK Group to ’CCC’ on liquidity concerns

Russian developer RTM could miss put option on credit notes – source

FINANCIAL & BUSINESS SERVICES

Banks getting state aid should act as state agents – Medvedev

Central Bank should watch that bank rates are reasonable – Medvedev

Govt advises Sberbank, VTB, VEB to extend loans to defense firms

Russian Central Bank raises refinancing rate, other key rates by 1 p.p. on Nov 12

Central Bank, VTB sign agreement on compensating interbank loan losses

Russian public bought five times more dollars in Sept

Russia’s broad monetary base shrinks 0.8% to 5.282 trln rubles in October

VEB receives petitions for $75 bln worth of refinancing

Banks ask VEB for 90 bln rubles in subordinated loans – Dmitriyev

Central Bank revoking license of Lefko Bank

Deposit Insurance Agency to take part in Elektronika Bank rescue

TransCreditBank to apply for 1 bln ruble loan from VEB; may acquire banks

VTB loses 17.8 bln rubles from securities portfolio revaluation in Q3

Bank Solidarnost owners plan to acquire troubled Potentsial

Deposit Insurance Agency to borrow from Central Bank at 5.5%; lend at 6.5%

Deposit Insurance Agency assesses financial health of ten Russian banks

AHML to place bonds in exchange for home loan bonds of banks

RTS doubles net profit to 111.353 mln rubles in 9 mths

Russian insurer assets increase by 88 bln rubles in H1

Central Bank registers Goldman Sachs subsidiary

Central Bank revokes licenses of Ekonatsbank, Mira Bank, annuls MSB’s license

Otkritie head hints at sale of share packet in corporation

EBRD opens $20 mln credit line for Credit Bank of Moscow to finance factoring

KIT Finance CFO Dmitry Romaev leaves position

Fitch changes rating outlooks on 12 Russian banks to negative

Fitch revises City of Moscow rating outlook to negative

S&P rates Russia’s Novgorod region "B/ruA", outlook stable

Ukraine’s Delta Bank, Oschadbank to set up consortium to rehabilitate problem banks

Alfa Bank Group still planning to expand business in Ukraine

Belarus expects to receive first $1 bln loan from Russia by Dec 1

Kazakh authorities reach agreement with four banks to acquire share capital

Fitch lowers seven Kazakh banks, financial companies

Latvia acquires controlling packet in Parex Banka

Georgian National Bank sees no grounds for devaluing lari

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

DOLLAR PICKS UP

GOVERNMENT SECURITIES

OFZ MARKET LACKS COMMON TREND

RUSSIAN EUROBONDS TUMBLE

STOCKS

INVESTORS BUY DOLLARS INSTEAD OF SHARES

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS