Interfax: Russia & CIS Business and Investment news report of 20.02.2009

Weekly news:

INDICATORS

Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of headline news

COVER STORY

Russian Econ Ministry revises GDP, industry forecasts down further

Russian industry plummets 16% in Jan, biggest drop for 15 years – Rosstat

overview

Economic statistics, forecasts get gloomier

FORECAST

Citi says ruble could decline another 15% vs. bi-currency basket in 2009

Bank of America expects ruble to continue devaluation against dollar

Ruble could drop additional 22% to 50 rubles to the bi-currency basket in 2009 - Nomura

POLITICS. ECONOMY

Medvedev: Financial situation complicated, but quite controllable

Ruble weakening was smooth, trust in banks saved – Medvedev

2009 budget deficit will be covered from internal loans, reserves fund – Putin

New 2009 budget draft projects 560 bln rubles more spending, 8% deficit - newspaper

Working group on Russia’s WTO accession to hold next session at end of March

Russian international reserves rise $3.1 bln in week

Russia had 0.3% inflation for week, 0.8% so far in Feb – source

Inflation in Russia could reach 14% in 2009 - Kudrin

Situation in Russian economy not improving – Nabiullina

Ruble devaluation finished, financing of real sector to resume within 1-2 months - Kudrin

Budget deficit in Russia expected to be 8%, inflation over 13% in 2009 - Dvorkovich

Total unemployed in Russia now over 1.8 mln persons – Golikova

Russia’s population shrinks by 121,000 in 2008

Khodorkovsky, Lebedev to be moved to Moscow to face new charges

COMPANIES & MARKETS

ENERGY & RESOURCES

Russia launches first LNG plant

Russia, China sign $25 bln loans-for-crude deal

Russian representatives to attend next OPEC meeting – Sechin

Europe remains the key market for Gazprom – Miller

Russia’s gas balance for 2009 could be adjusted downward

Samsung aims to collaborate with Gazprom on Yamal, Shtokman

Gazprom mulls gas trading venture in China

Regulator opens cases against oil majors for high fuel prices

Govt approves rules for calculating price on no-bid resource properties

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

FGC, RusHydro boards to vote on transfer of OGK-1 shares to Inter RAO in Feb

Inter RAO to resume electricity deliveries to China soon

Mosenergo reshuffles management, sends 3 execs to subsidiary

Georgia starts electricity exports to Russia

METALS & MINERALS

Precious metals exploration to get 10.5 bln rubles funding in 2009

RTS to launch platinum, palladium futures by end March

VTB yet to provide regulator with further info on Polyus share deal

VEB gets representatives on boards of Evraz steel mills

Norilsk Nickel assets in Africa need nickel at $10,000 per tonne

Mechel to slash investment in flagship Chelyabinsk plant 44%

MMK won’t pay dividend for full-year 2008 – Rashnikov

Belon still mulling LSE listing in 2009

METAL GOODS & ENGINEERING

United Shipbuilding agrees cooperation with Samsung Heavy Industries

Sukhoi selling $183 mln in new shares to Alenia Aeronautika

Mordashov’s Highstat Ltd consolidates 68.8% stake in Power Machines

Construction to start on Peugeot-Mitsubishi auto plant in Kaluga in March

OMZ pledged controlling stake in Izhora Works to Sberbank in 2007

IT & TELECOMS

Russian cellular operators boost subscriber base 0.5% in January

VimpelCom halts new network construction

TRANSPORT

AiRUnion on verge of bankruptcy since 2007 – Audit Chamber

RZD invests 4.4 bln rubles in Moscow-St. Petersburg high speed rail in 2008

Russian govt to partly subsidize plane tickets from Far East to Moscow, St. Pete, Sochi - Medvedev

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

SUMMARY: Agricultural vanguard

Gordeyev happy to be nominated for Voronezh region governor

Intervention grain fund to be formed - Zubkov

Sweden’s DeLaval may produce milking equipment in St. Petersburg - Zubkov

CHEMICALS & pharmaceuticals

Pharmacy Chain 36,6 expects to complete sale of 51% Veropharm stake in Mar - source

CONSUMER GOODS. RETAIL

Magnit to open some 400 convenience stores, six hypermarkets in 2009

CONSTRUCTION & PROPERTY

Olympic estimate cut by 15% - Kozak

Deripaska may sell Strabag shares - newspaper

media

Deputy PM, government office head Sobyanin elected Channel One Russia chairman

Rambler Media general director resigns; three board members to leave

restaurants & catering

Rosinter Restaurants mulls import substitution

tourism & leisure. sport

Russian businessman Usmanov consolidates blocking stake in Arsenal FC

FINANCIAL & BUSINESS SERVICES

Russian banks issue 90% fewer plastic cards in Q4 2008

RTS to launch platinum, palladium futures by end March

Banking sector will post losses in 2009-2010 – VTB 24 chief

VEB estimates subordinated loans to banks will total 70 bln rubles

Sberbank won’t need recapitalizing in H1, probably not in H2

Sberbank in acquisition talks with BTA Bank - Bugrov

Rosbank gives up on aggressive expansion in 2009

CIS

Ukraine GDP down 20% in Jan – National Bank estimate

Industrial production in Ukraine plunges 34.1% in January

Ukraine’s foreign trade deficit up 90% in 2008

Net FDI inflow to Ukraine shrinks by 22% in 2008

Belarusian economy grows 4.2% in January

Belarus boosts industrial production 1.2% in January

Belarus to see 1% GDP growth, 8%-9% inflation in Q1 – source

Kazakh economy grows 3.2% in 2008 – statistics

Kazakh trade surplus up 120% in 2008

Uzbekistan saw GDP growth, budget surplus in 2008

Uzbekistan’s foreign trade surplus up 56.5% in 2008

IMF revises forecast for GDP growth in Tajikistan downwards

Foreign investment in Tajikistan’s economy up 78% in 2008

Azerbaijan sees industrial production decline 5% in January

Foreign investment in Azerbaijan grows 2.6% in 2008

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

Dollar and euro post gains, the market stayed below the bi-currency basket’s threshold for Feb 16-20

GOVERNMENT SECURITIES

OFZ MARKET SEES FEW CHANGES LAST WEEK

EUROBOND QUOTES CONSOLIDATE

STOCKS

STOCK MARKET LOSES FEBRUARY GAINS

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

CORPORATE BONDS MARKT TO LACK COMMON TREND

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

Agency Interfax