Interfax: Russia & CIS Business and Investment news report of 20.03.2009

Weekly news:

INDICATORS

Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of headline news

COVER STORY

Russian govt approves "unique" budget, sees deficit of 7.4% of GDP

Russian govt approves draft anti-crisis plan for 2009

OPEC, Russia fail to agree on fresh production cuts, agree to cooperate more closely

Deripaska, Fridman not in dispute, working on BasEl debt restructuring

OPINION

Bank of America expects sharp slowdown in inflation for Russia

Alfa-Group’s Fridman says firms should invest in infrastructure during crisis

FORECAST

Russia’s capital outflow in 2009 forecast at $80 Bln – Economic Development Ministry

Russian inflation could exceed official forecast in 2009 – Shuvalov

POLITICS. ECONOMY

Russia suggests supranational reserve currency as part of G20 proposals

Kudrin: Inflation in Russia to slow down in 2nd half of 2009

Kudrin: Russian trade turnover halved amid crisis

Russian inflation at 0.2% from March 11-16, 4.7% since start of 2009

Russian international reserves fall $4.4 bln in week

Russia sees industrial output plunge 13.2% in February

Unemployment jumps to 8.5% in Feb, number of vacancies plummets

Russia has 2.132 mln unemployed – ministry

Russian, Mongolian PMs discuss switch to national currency in trade

Hearings of Khodorkovsky-Lebedev case set for March 31

COMPANIES & MARKETS

ENERGY & RESOURCES

Russia-EU Energy Council to convene in Moscow on April 30

Russia to reduce oil export duty to $110 per tonne on Apr 1

Russia, Iran sign memorandum on swap gas deliveries to northern Iran

Gazprom may take part in building LNG plant in South Pars

Northwest Russia pipeline project poses no "risks" - minister

Nord Stream still attractive for investment despite crisis – management

Lukoil bought Prosperity Capital out of RITEK – Graifer

Gas transit to Europe via Ukraine plunges 52.4% in Jan-Feb

Russia tentatively agrees to reduce gas supply to Ukraine in 2009

Transneft readying debut 35-bln ruble bond issue

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

Budget spending on power sector may be slashed in 2009

France’s Schneider Electric to invest 20 mln euros in two Russian projects

GE Energy, NPO Saturn postpone project to produce gas turbines

RusHydro, FGC approve agreement with Inter RAO on OGK-1 management

Russia, Mongolia to sign atomic energy cooperation agreement

METALS & MINERALS

Kudrin: Govt not planning to capitalize Rusal

Gazprombank to buy 3.3 bln rubles of gold from Yuzhuralzoloto in 2009

Polymetal shareholders vote for share issue

Alrosa to launch investment diamond market

Foreign companies eye Alrosa iron ore assets

Norilsk Nickel discussing Cawse sale

ArcelorMittal could leave energy coal mine out of new coal co

NLMK to start building Kuzbass coal mine in 2010

METAL GOODS & ENGINEERING

Russian govt to allocate up to 70 bln rubles for auto companies

Avtovaz owes suppliers 10 bln rubles – Alyoshin

Govt mulling Avtovaz share issue – Alyoshin

GE, Magna to invest $54 mln in construction of plants in Kaluga region

BASF opens catalyst plant in Moscow region

IT & TELECOMS

Russian cellular operators boost subscriber base 0.5% in February

Russia could invest 23.7 billion rubles in Sistema’s Indian subsidiary – Kommersant

MegaFon to build own monobrand chain, not planning acquisitions

Russia’s MTS looks to restructure $360-mln loan, asks for three-year extension

Svyazinvest mulls replacing CEOs at subsidiaries

TRANSPORT

Russian airlines fly 22% fewer passengers in 2 mths

Domestic air companies to get customs deferment on imported planes – Russia’s anti-crisis program

Russia, Turkey plan to sign rail and ferry link deal in May

Govt to boost RZD charter capital with 6 bln rubles from Uralkali, Silvinit

RZD working on railroad development program for Mongolia

RZD slashes 2009 investment one-third

S7 secures restructuring deal with bondholders

Prokhorov recommended for Sheremetyevo board of directors

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Unilever plans to develop 100 mln euro production facility in 2010 in Tula region

Russian Alcohol to boost investment in vodka promotion 20% in 2009

Russia to exempt some exporters from timber duties

CONSUMER GOODS. RETAIL

X5 Retail denies reports on possible share issue

Samokhval receives loans, aims to resume supplies

Metro to open 26 mln euro Real hypermarket in Ivanovo this summer

CONSTRUCTION & PROPERTY

Russian housing construction up 7.4% in Feb

Developer RTM minorities concerned by proposed asset sale

PIK Group nearly halves new housing openings in 2008

Kerimov could buy large stake in developer PIK – newspaper

AFI Development posts $108 mln losses in 2008, portfolio shrinks 53%

tourism & leisure

Estimated cost of Olympic games in Sochi is 218 Bln rubles – Kozak

FINANCIAL & BUSINESS SERVICES

Russian govt to refrain from increasing borrowing on internal financial markets

Central Bank expects most Russian banks to post profit in 2009

Central Bank will not weaken banking regulations in light of crisis

MICEX to launch euro/dollar trading on currency market before end of March

Short-selling ban in Russia to expire late April, new restrictions possible - FFMS

EBRD to invest some $3 bln in Russian economy in 2009

Sberbank expecting profit in 2009, but much less than last year – Gref

VTB develops Islamic banking, could place bonds under Sharia laws

CIS

Ukrainian industrial output falls by one third in Jan-Feb

Ukrainian current account deficit expands to 7.1% of GDP in 2008

Belarusian economy grows 2.3% in Jan-Feb

Belarusian industrial output down 2.3% in Jan-Feb

Belarusian foreign debt grows 18.6% in 2008

Kazakh trade surplus shrinks 72% in Jan

Fixed capital investment in Kazakhstan falls 9.7% in Jan-Feb

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

Dollar plummets following U.S. Fed meeting

GOVERNMENT SECURITIES

OFZs post slight gains for week of Mar 16-20

RUSSIAN EUROBOND PRICES CLIMB

STOCKS

STOCK MARKET CLIMBS AGAIN

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

BLUE CHIP BONDS TO KEEP RISING

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

Agency Interfax