Weekly news:

INDICATORS

Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of Headline News

COVER STORY

Medvedev: Russia will not see default or denomination

GECF adopts charter, chooses Doha as HQ

Russian govt publishes list of 295 mainstream companies

Naftogaz unable to pay for Nov, Dec gas; Gazprom to stop supplies if no deal signed

OPINION

Russian economic, political systems have 50:50 chances to endure crisis - Chubais

survey

Russian ruble: soft landing or freefall?

Year in Review: Disaster for base metals, opportunities for gold…

Russian stock market plummets 65%-70% in 2008, developers lead the fall

POLITICS. ECONOMY

Medvedev pressing on foreign partners to act on G20 decisions

Cooperation with premier is comfortable - Medvedev

Five CIS states to set up $10-billion anti-crisis fund

Ulyukayev: no plans to abandon policy of gradual ruble devaluation

Russian CB could double refinancing for banks in 2009

Ruble won’t decline abruptly in 2009; forecast at 31-32 per dollar - Dvorkovich

Reserve Fund can cover budget deficit in 2009-2010 - Dvorkovich

Russia’s intl reserves grow by record $15.4 bln over week

Russian GDP up 1.6% in Nov, 6.5% in 11 mths – source

Budget deficit in Russia likely in 2009 – Kremlin aide

Russia had 0.2% inflation Dec 16-22, 13.1% in YTD – source

Russian money supply shrinks 2.2% to 13.2 trln rubles in November - CB

Russian imports unchanged in Nov, trade surplus halved – source

COMPANIES & MARKETS

ENERGY & RESOURCES

Fight for hydrocarbons most perilous for Russia - security concept

Natural Resources Ministry wants foreign companies to join shelf development

Tariff review to produce 24-bln ruble shortfall for Gazprom in 2009

Russia, Serbia sign energy cooperation deals

FTS lowers Transneft tariff for ESPO reverse mode by 10.35%

Resources Ministry against relaxing license control

Govt against abolishing NRET, favors differentiation

Reserve increase in 2008 to equal 500 mln tonnes of oil, 650 bcm of gas

Gazprom hasn’t asked govt for financing to buy 20% of Gazprom Neft

Sacyr won’t lower sale price of Respol shares below 26.7 euros – newspaper

Regulator fines Rosneft 1.5 bln rubles, Lukoil 1.4 bln rubles for violations

TNK-BP Holding shareholders approve new-look board

Tatneft expects revenue up 16.4% in 2008, could lower production by 800,000 tonnes

NOVATEK plans to begin exploration drilling in Egypt in 2010

Moscow, Minsk agree on price for gas on terms

Astana, Moscow agree on export price for Kazakh gas

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

First trades see 2,000 megawatts of capacity sold for 100,000-140,000 rubles

Market Council approves capacity price for one-third of gencos

Electricity consumption in Russia could grow 1.5%-2% in 2008 – Market Council

OGK-6 net profit down 75% to 281 mln rubles in 9 mths

Mosenergo sees IFRS losses decline 31% in Q3, 82% in Jan-Sept

Minsk to talk with Rosatom in early 2009 on building first Belarusian NPP

EBRD to continue financing energy saving projects in Ukraine

Coal could be more attractive power industry fuel from Q209 – IES

METALS & MINERALS

Russian steel production more than halves in first third of December

Russian ministry proposes 28.1% duty on Chinese, Brazilian stainless steel pipes

India to invest in Russian, Kazakh uranium mines – report

Russia to grow gold reserves 513 tonnes, coal 58 mln tonnes in 2008

Polymetal posts H1 US GAAP net profit of $43.1 mln

VTB lends 44.2 Bln rubles to Alrosa for 600 days

Rostekhnologii’s Chemezov pulls out of running for Norilsk Nickel board

Norilsk Nickel suspends operations at Tati field in Botswana

EC imposing 10.7%-44.1% duties on Ukrainian seamless pipes

METAL GOODS & ENGINEERING

Ford shutting down assembly line in Russia for nearly one month

GM Uzbekistan JV boosts auto output 11% in Jan-Nov

South Korean companies interested in building shipyard in Leningrad region

IT & TELECOMS

Russian mobile operators receive over 1.2 trillion rubles in profit – ministry’s data

Russian IT market grows 22% to 1.8 trln rubles in 2008

MegaFon boosts Q3 net profit 19% to 12.4 bln rubles

Tbilisi court upholds $350,000 in fines against MegaFon

TRANSPORT

Aeroflot IFRS earnings plummet 57% to $152 mln in 9 mths

Aeroflot could be Malev’s operating co under VEB ownership

Aeroflot shelves merger with Siberia Airlines

RZD forecasting 2 bln rubles net profit in 2008 – Yakunin

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Grain prices picking up in Russia

Russian fish catch down slightly since start of 2008

Russia to stop catching king crab in Barents Sea Jan 1

Russia to resume talks on U.S. meat import in late January

Gruppo Campari buying 99% stake in Odesa Sparkling Wine Plant for $18 mln

CHEMICALS & pharmaceuticals

SIBUR, EuroChem, Lukoil pass preliminary registration at ECHA

SIBUR revenue set to drop 50% in Dec

SIBUR-Russian Tires ups revenue 10.7% in 9 mths

CONSTRUCTION & PROPERTY

Sistema plans to place 20 bln rubles in bonds

Moody’s downgrades Sistema-Hals

media

Tele2 set to launch networks in Novosibirsk, Tomsk regions in mid-2009

FINANCIAL & BUSINESS SERVICES

Russia may revise govt borrowing strategy in 1-2 years if oil prices stay low – deputy minister

Russia to double aid to developing countries to $400-500 Mln by 2011

Russian banks to see growth in loan portfolios slow to 10% in 2009 – VTB 24

Deposit outflow from Russian banks 0.7% in November – CB

Central Bank nominates Shvetsov for deputy chairman – State Duma

Central Bank revokes licenses for 3 banks

Sberbank earnings plunge to 200 mln rubles in Nov from 10 bln rubles in Oct

Gazprom affiliate set to gain control over Soyuz Bank by end of 2008 - source

Problem loans in Ukraine reach 2.1% in Nov – Natl Bank

CIS

Ukrainian parliament rejects 2009 budget

Ukrainian GDP to decline 4% in 2009 - World Bank

Ukraine forecasts 2009 inflation at 9.5%

Kyrgyzstan forecast 7.6% GDP growth in 2008, 4% in 2009 – minister

Georgian central bank cuts refinancing rate to 8%

Fitch downgrades Lithuania to ’BBB+’, Outlook Negative

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

DOLLAR, EURO CLIMB

GOVERNMENT SECURITIES

OFZ MARKET LACKS COMMON TREND

EUROBOND MARKET IN A LULL

STOCKS

GOVT MONEY KEEPS STOCK MARKET AFLOAT

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

CBOND MARKET EXPECTED TO GROW IN LAST DAYS OF 2008

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

Agency Interfax