INTERFAX - Russia & CIS Business and Investment news report of 16.08.2008

Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of Headline News

GEORGIAN-SOUTH OSSETIAN CONFLICT

Georgia launches offensive to reclaim South Ossetia, Russia reacts

Conflict won’t impact Russia’s key economic indicators – Kudrin

Georgia sees ratings downgrades over conflict

Conflict disrupts energy supplies

POLITICS. ECONOMY

Nevzlin’s lawyers to appeal verdict with Supreme Court

Budget commission approves adjustments to three-year budget – Kudrin

Russia had zero inflation for August 5-11

Russian budget’s cash surplus at 9.2% of GDP in Jan-July

Foreign investment in Russia down 23% to $46.5 bln in H1

Russian intl reserves at $597.5 bln

Russian monetary base up 53.4 bln rubles to 4486 bln rubles

Russian Central Bank denies reports on issuance of 10,000-ruble banknote

COMPANIES & MARKETS

ENERGY & RESOURCES

Court bars TNK-BP CEO Dudley from post for two years

Ministry drafts list of strategic deposits

Gazprom boosts H1 RAS revenue 42%

Gazprom, Centrex each get 20% stake in Gissarneftegaz JV in Uzbekistan

GdF withdraws from joint venture with Gazprom

Lukoil boosts H1 RAS revenue 46%, cuts sale price of diesel, jet fuel, fuel oil

Rosneft boosts H1 RAS revenue 68% to 571 bln rubles

Gazprom Neft looks to acquire assets in Russia and Kazakhstan

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

Rosenergoatom being privatized, changing name

TNK-BP gets 25% of joint venture with OGK-1 genco

RusHydro posts nearly 8 bln rubles profit in H1

METALS & MINERALS

Potanin defiant as RUSAL says Norilsk Nickel in crisis

Norilsk Nickel sees revenue fall 18% in H1

Rostekhnologii sees Norilsk as potential Udokan copper partner

UC RUSAL files suit against Lukoil over disruptions in oil coke supplies

FAS to order Mechel to lower coal prices

NLMK buying U.S. pipe company John Maneely for $3.53 bln

VSMPO-Avisma sees RAS earnings plummet 31% in H1

Mordashov acquires stake in Germany’s Innolume

Severstal acquires Balazhal gold producer in Kazakhstan

Kristall to have 6,000-7,000 carats of diamonds cut in Armenia

METAL GOODS & ENGINEERING

Mordashov’s Highstat Limited reduces Power Machines stake to 30%

MiG corporation to modernize 19 Peruvian fighters in contract worth over $100-million

Russlegavto to start assembly of Chery Fora cars in H1 2009

Chinese company interested in organizing production in Khabarovsk Territory

IT & TELECOMS

Sistema seeks clearance to buy 50% of CDMA operator Sky Link

MTS beats expectations, boosts Q2 US GAAP earnings 30% to $659 mln

MTS requests clearance to buy cellular provider SMARTS

MGTS sees H1 earnings slip 3.7%

TRANSPORT

Rostekhnologii chief Chemezov downbeat over AiRUnion

Merger of AiRUnion airlines unlikely before next year

Sheremetyevo Airport flies 11% more passengers in Jan-July

Vnukovo posts 111 mln rubles in RAS net profit for H1

Aeroflot flies 14.8% more passengers in Jan-Jul

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Russia to start grain procurement interventions on August 19

Russia boosts fish catch 4%, fish production 24% in H1

Russian vodka production down 1.6% in Jan-July

Milk prices to start stabilizing in Sept

Lebedyansky splits up business to sell PepsiCo juice division

Wimm-Bill-Dann boosts H1 earnings nearly 6-fold

Babayevsky only member of United Confectioners Holding to up earnings in H1

CHEMICALS & pharmaceuticals

Acron places 0.06% on LSE as GDR, raises $2.7 mln

Uralkali fulfills 66% of GDR issue quota

Veropharm boosts H1 IFRS earnings 140%, above forecast

CONSUMER GOODS. RETAIL

X5 Retail plans to sell control of developer subsidiary

Seventh Continent boosts net profit 1.8%, revenue 19% in H1

Detsky Mir lowers RAS net profit by 78.5% in H1, sales revenue down 12.3%

CONSTRUCTION & PROPERTY

Knauf launches gypsum rock production in Arkhangelsk region

restaurants & catering

Rosinter Restaurants post 59 mln rubles in net losses in H1

FINANCIAL & BUSINESS SERVICES

BasEl makes buyout offer to PPFI for blocking packet in Ingosstrakh

Russian banks issue over 11 mln cards, half of them dormant – CB

VTB consolidates 97% stake in VTB Northwest at 45 rubles per share

CIS

Ukrainian industrial production slows to 5.1% in July

Belarus money supply climbs 18.4%

National Bank of Belarus raises refinancing rate to 10.5%

Kazakh GDP up 5.4% in H1

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

DOLLAR CLIMBS TO SIX-MONTH HIGH

GOVERNMENT SECURITIES

OFZs dip for week of Aug 11-15

RUSSIAN EUROBONDS MARKET LACKS COMMON TREND

STOCKS

RUSSIAN STOCK MARKET CLIMBS

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

Trading to remain light on corporate bonds market

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