Interfax: Russia & CIS Business and Investment news report of 16.01.2009

Weekly news:

INDICATORS

Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of Headline News

crisis

Russian anti-crisis program is balanced but not ideal – Medvedev

GAZPROM-UKRAINE GAS DISPUTE

Hopes pinned on Moscow gas summit

15.01.09 Europe losing patience with Ukraine and Russia as dispute continues

14.01.09 Ukraine still failing to deliver Russian gas to Europe

13.01.09 Russian gas to Europe blocked in Ukraine after Gazprom turns taps back on

12.01.09 Ukraine re-signs gas transit protocol without reservations

11.01.09 Russia, Ukraine reach agreement on gas transit to Europe

31.12.08 Ukraine refuses to guarantee gas transit to West Europe

THE YEAR IN REVIEW

Economic results in Russia – shattering the rose-colored glasses

Russian stock market – driver of growth and harbinger of crisis

Stepping into the past, or old fashioned banking

Dollar, euro gain 15%-20% against ruble in 2008

OPINION

Ruble weakening artificial, crisis unrelated to global meltdown – Illarionov

POLITICS. ECONOMY

Russian Finance Ministry could revise 2009 budget based on oil price of $32 per barrel – sources

Russia had six-year high inflation of 13.3% in 2008 – Rosstat

Russia had 0.8% inflation for Jan 1-12 – Rosstat

Russian intl reserves shrink by 10.8% in 2008 following nine years of growth

Russian international reserves up $0.5 bln in week

Russian GDP fell in Dec 2008 for first time in 10 years – bank

Reserve Fund at $137.09 bln, Welfare Fund $87.97 bln by Jan 1 – Finance Ministry

Ruble strengthens 4.5% in 2008 – Central Bank

Russian trade surplus widens 42% to $193.6 bln in 11 mths – customs

New law requires govt officials to report finances of relatives to tax agency

COMPANIES & MARKETS

ENERGY & RESOURCES

Russia lowering export duty on oil to $119.1 a tonne from Jan 1

Russia to lower oil export duty to $100.9/tonne on Feb 1 – ministry

Russia’s energy strategy to 2030 to account for global crisis

Russia could increase stake in Caspian Pipeline Consortium in 2009 – source

Gazprom trebles Q2 IFRS earnings to 300 bln rubles, above forecast

Former Rosneft exec named as deputy energy minister

Belarus reaches agreement with Russia on energy resource imports for 2009

Kazakhstan to cancel crude oil export duty

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

State power companies ask for govt for 146 bln rubles in 2009

RusHydro elects new board of directors

RAO Nordic, Fortum and Scaent AB granted right to transport electricity from Russia to Finland

Inter RAO’s Turkish subsidiary commences import of electricity from Russia

METALS & MINERALS

Russian president, metals bosses discuss consolidation initiative - newspaper

Russia could scrap export duty on unalloyed nickel, copper cathodes

Evraz co-owners buy almost 10% of Highland Gold Mining

NLMK winds up holding co for N. American assets

Lukoil, De Beers call off Verkhotina diamond deal

Prokhorov may boost stake in RUSAL to 19% - Vedomosti

Alrosa could lose oil, gas license

Kazakhstan to set up national mining company - source

METAL GOODS & ENGINEERING

Increased car import duties enter into effect

New car sales in Russia to decline 19% in 2009 – forecast

Formation of United Shipbuilding Corp. to be completed by April

Renault restarts Avtoframos plant in Moscow

Rosoboronexport exports $7 Bln in arms in 2008 – company’s director

Sales of foreign cars in Russia grow 26% in 2008

IT & TELECOMS

Svyazinvest’s Kiselev may replace Kazmin as head of Russian Post

MegaFon shareholders approve consolidation of subsidiaries

Metropol cuts stake in North-West Telecom to 0.45% from 5.64%

MDM-Bank sells stake in Comcor

TRANSPORT Transportation Ministry strengthens Rosaviatsia’s control over airline finances

Sovcomflot shopping for new assets - Frank

Sovcomflot boosts consolidated revenue 33% in 2008

Transcontainer will not pay dividend for 9 mths

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Agriculture sector to receive 800 bln rubles in bank support in 2009 – VEB chief

Russia and U.S. lower quotas on American poultry but raise quotas on pork products

Russian government adopts rules for fishing rare species

Over 7,000 pigs to be culled in Stavropol due to African plague outbreak

PepsiCo consolidates 99.6% of Lebedyansky shares

CHEMICALS & pharmaceuticals

Commission to release results of Uralkali mine accident investigation after January

UralChem completes 5:1 share split

Gas conflict leads to halt of chemical plants in Ukraine

CONSUMER GOODS. RETAIL

Pharmacy Chain 36,6 approves supplementary share issue

X5 Retail acquiring Rostov franchisee for $15 mln

CONSTRUCTION & PROPERTY

PIK Group to get new financial director

FINANCIAL & BUSINESS SERVICES

Ulyukayev: ruble will weaken – and strengthen - in 2009 - Vedomosti

Deutsche Bank fund divests Mechel, VSMPO, development shares, invests in CTC

RZD and Alrosa complete purchase of KIT Finance Group

VTB receives 20% Rosbank stake in repo deal with Interros

Central Bank boosts lending to banks by 1 trillion rubles in Nov

VEB hands out $9 bln to refinance foreign debts

Central Bank licenses Russian subsidiary of Rabobank

Kirilenko retains seat on Sobinbank board

CIS

Belarus gold, forex reserves decline 27% in 2008

Belarusian GDP comes to 128.8 trillion Belarusian rubles in 2008

Kazakhstan’s gold and currency reserves up 21% in 2008

Kazakhstan ups industrial production 2.1% in 2008

Kyrgyzstan had 20% inflation in 2008; GDP grows 7.6%

Turkmenistan prepares to redenominate manat

Tajikistan’s GDP up 7.9% in 2008, inflation at 11.8%

Armenian inflation in 2008 at 5.2%, GDP up 7.2% in 11 mths

National Bank of Azerbaijan boosts currency reserves 50% in 2008

Lithuania’s gold and forex reserves down by 13.3% in 2008

Bank of Latvia’s international reserves down 6.8% in 2008

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

Dollar and euro post highest gains since 1998 for week of January 11-16

GOVERNMENT SECURITIES

OFZ MARKET SEES SLIGHT DECLINE IN EARLY JANUARY

EUROBOND QUOTES SLIDE

STOCKS

Stock market starts year with 10% slump on RTS

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

CBOND MARKET EXPECTED TO SLIDE IN THIN TRADING

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

Agency Interfax