Weekly news:

INDICATORS

Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of Headline News

COVER STORY

S&P lowers Russia rating to ’BBB’, outlook negative

analysis

Analysts unfazed by S&P’s Russia downgrade

overview

Russia, Argentina call for furthering financial institutions reform

POLITICS. ECONOMY

Moody’s changes Russia rating outlook to stable

Medvedev hopes London summit of G20 to come up with anti-crisis projects

Russia determined to join WTO, but will not at any cost – Lavrov

Russian international reserves fall $17.9 bln in week

Russian Econ Ministry predicts inflation of 0.8%-1% in Dec – source

Russian GDP grows 6.2% annually in Q3; up 7.3% in Jan-Sept – Rosstat

Russian GDP growth at less than 6.8% in 2008 – Klepach

Russian Econ Ministry forecasting 1.9% industrial growth in 2008 – source

Russian trade surplus widens to $182.8 bln in 10 mths – customs

Russian trade surplus shrinks 26.8% to $11.9 bln in October – CB

Capital outflow from Russia slows in Nov – Kudrin

COMPANIES & MARKETS

ENERGY & RESOURCES

Russia to announce proposals on oil production cuts by Dec 17

Russia may cut oil export duty to $117-$119 per tonne on Jan 1 – Finance Ministry

Gazprom Deputy CEO Medvedev: Crisis changes stance on Kovykta buy – FT

Gazprom Neft eyes further Iranian field, mulls overseas partnership with Chevron

Sechin, Shmatko discuss Gazprom cooperation with Eni chief

TNK-BP to spend bulk of 2009 investment on maintaining oil production levels

Lukoil signs MOU on oil product deliveries to Argentina

KNOC, Rosneft sign memorandum of understanding

ONGC makes official offer to buy Imperial Energy

Yukos’ former vice president released from custody on bail

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

S&P lowers ratings on GREs following sovereign downgrade

Econ Ministry suggests govt lower electricity tariff growth to 5%

Russian electricity exports grow 18.1% in Jan-Oct

Lenenergo reduces 2008 invest program by a third - source

Atomenergoprom to set up uranium enrichment subsidiary

METALS & MINERALS

BCS collecting minority votes for Interros candidates for Norilsk board

UC RUSAL drawing up program to deal with financial crisis, cuts production at Urals plants

Court dismisses RUSAL suit against Norilsk Nickel share buyback

NLMK boosts 9M earnings 66%, lowers FY08 revenue, EBITDA forecasts

MMK maintaining firm financial position

Severstal closes deal to buy controlling stake in West African iron ore deposit

Diamond miner Alrosa slashes 2008 earnings forecast, not planning to cut output

Highland Gold delaying two Russian projects until economic situation improves

METAL GOODS & ENGINEERING

Car imports to Russia up 34.6% in Jan-Oct; exports up 11%

Sales of foreign cars in Russia down 15% in November

Siemens boosts Russia portfolio 80% in 2008

Daimler to pay $250 mln for Kamaz stake immediately; $50 mln later

BelAZ plans to organize pit-run equipment production in China

Ford Russia to halt production for nearly one month on Dec 24

Volvo to raise prices on cars sold in Russia by 10%-15% on Jan 1

GM to raise Opel prices at least 2.5% on Jan 1

IT & TELECOMS

Sergei Sitnikov appointed head of Rossvyaznadzor

Rostelecom boosts H1 IFRS earnings 4-fold, revenue down 1%

Sistema-Hals narrows loss to $72.5 mln in 9 mths

Sistema-Hals to cut staff 40%; says value of project portfolio down 15%-20%

Shareholders sue MGTS over loans to Comstar units

TRANSPORT

Transportation Ministry expects airline services to fall 10% in 2009

Russian Transport Ministry predicts over 6% drop in rail shipments in 2009

S&P lowers RZD from "???+" to "???", outlook neg

Russian Railways reduces cargo shipments 20% in Nov, expects 28% decline in Dec

RZD to build new tracks to Mongolian mines

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Russian grain harvest to surpass 103 mln tonnes in 2008 – updated forecast

Russia bans pork imports from Ireland

Russia boosts meat imports 21.8% in Jan-Oct

Russian wheat exports down 20% in Jan-Oct – customs

Russian agricultural profits to fall almost 37% in 2009 – ministry

Nutritek defaults on $50 mln in LPNs

CHEMICALS & pharmaceuticals

Russia’s SIBUR planning to cut staff 25% at central office

EuroChem triples IFRS net profit in Jan-Sep

CONSUMER GOODS. RETAIL

Technosila to merge subsidiaries in 2009, start using IFRS

Seventh Continent’s IFRS net profit down 23% in 9 mths

Seventh Continent cuts 2009 investment to $140 mln from $400 mln

Dixy boosts IFRS earnings 200% to 242.8 mln rubles in Jan-Sept

Dixy to open at least 100 new stores in 2009; targets revenue to rise 40%

Lenta expects sales to grow 28% to $2 bln in 2008

Retailer Magnit boosts sales 32% to $442 mln in Nov

CONSTRUCTION & PROPERTY

Fitch withdraws PIK Group’s ’CCC’/’C’ Ratings on RWN

FINANCIAL & BUSINESS SERVICES

Russian govt allows Finance Ministry to issue 535.8 bln rubles in state bonds in 2009

AHML puts total mortgage securities for 2009 at 100 bln rubles

New MICEX rules registered giving Central Bank access to trading

CB cuts net dollar sales 22%, euro sales 16% in Oct

Russia’s Deposit Insurance Agency mulls options for saving five banks

Bank of Moscow to cut 10% of staff

S&P cuts ratings on six Russian financial institutions

S&P alters ratings on 11 European securitizations after lowering sovereign rating of Russian FC

Ukrainian National Bank plans currency interventions

CIS

Ukraine’s inflation in Nov at 1.5% and 19.8% since year’s start

Belarusian GDP up 10.8% in Jan-Nov - ministry

Belarusian inflation at 1.4% in Nov, 12% since year’s start

Belarus trade deficit widens 60% in 10 mths

Turkmenistan boosts GDP 23.7% in Jan-Nov

Georgia’s intl reserves up 5.3% in Nov, down 1.6% in 11 mths

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

DOLLAR CORRECTS DOWN, RUBLE SLIDES

GOVERNMENT SECURITIES

OFZ QUOTES KEEP SLIDING

EUROBOND QUOTES EDGE UP

STOCKS

BAD NEWS PREVENTS RALLY ON RUSSIAN STOCK MARKET

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

DOWNWARD TREND TO DOMINATE CORPORATE BONDS MARKET

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

Agency Interfax