Interfax: Russia & CIS Business and Investment news report of 29.05.2009

Weekly news:

INDICATORS

Chief Russian Financial and Macroeconomic Indicators

EVENTS IN THE COMING WEEK

HEADLINE NEWS

Digest of headline news

COVER STORY

Medvedev’s budget address stresses peak oil is over, sees deficit of 7% of GDP

Strengthening of ruble against dollar could spark CB concern - Ignatyev

Russian nuclear companies looking to extend intl partnerships

ANALYSIS

Fiscal revenue volatility and refinancing needs the main challenges for Russian subnationals - Fitch

FORECAST

Sberbank analysts predict 5%-6% decline in Russian GDP in 2009

POLITICS. ECONOMY

Putin: Russian economy could emerge from crisis more competitive

Inflation in Russia could fall below 10% over next several years - Medvedev

Russian govt to speed up guarantee process

Russian govt approves tax policy for 2010-2012 - Kudrin

CB’s Ulyukayev denies rumors of dual currency basket changes

Russia to invest $10 bln from intl reserves in IMF bonds – Kudrin

Russia could start buying IMF bonds in autumn – source

Kudrin doubts Belarus capable of servicing debt

Russian international reserves up $8.6 bln in week

Russian GDP shrinks 10.5% in April, 9.8% in 4 mths – Klepach

Russian industrial decline almost 17% - Putin

Russian food prices rise 10 times more than in EU in 4 mths – Rosstat

Russian money supply up 1.9% in April - CB

Russian monetary base up 22.2 bln rubles to 3893.9 bln rubles

Russian ruble strengthens 4.5%-4.7% vs. dollar in May, 1.7%-1.8% vs. euro

Russia to bear subsidiary liability for state guarantees - bill

COMPANIES & MARKETS

ENERGY & RESOURCES

Oil rally a "short-term correction" – Russian Finance Ministry

Still no timeframe for decision on Transneft tariff – FTS

Finance Ministry to hike NRET for gas from 2010

Energy Ministry to submit govt energy strategy for period until 2030 within month

Russia to raise oil export duty to $152.8/tonne on June 1

TNK-BP shareholders agree CEO succession plan

Sibir Energy accepts Gazprom Neft offer for shares to pay Tchigirinski debt

Gazprom Neft confirms Gazprom purchased 20% stake from Eni

Lukoil boosts stake in RITEK to 93.5%

Russia’s Udmurtneft to spend about 70% of net profit on 2008 dividends

Timchenko elected to NOVATEK board, Volga Resources boosts stake to 18.2%

Gazprom plans LNG project in Yamal

TNK-BP once again plans to merge cos holding over 5% of shares

ELECTRICITY PRODUCTION & DISTRIBUTION. NUCLEAR POWER

Russia’s Atomenergoprom, Toshiba discuss building uranium enrichment facility

VEB, Rosatom and Rosimuschestvo able to subscribe to new Inter RAO shares – sources

Rosatom forms isotope export monopoly

At least 5 countries interested in TVEL’s nuclear fuel supply initiative

Techsnabexport, USEC discuss prospects for nuclear cooperation

Atomenergomash plans to raise 200 mln-300 mln euro to develop JV with Alstom

METALS & MINERALS

Russian steel companies could benefit as customs lets less scrap metal abroad

Shtokman Development calls tender for pipe deliveries to sea-based pipeline

Norilsk Nickel revises 2009 nickel forecast down

Rostekhnologii eyes Norilsk Nickel shares pledged with state banks - newspaper

Prokhorov re-elected as Polyus Gold board chairman

METAL GOODS & ENGINEERING

Russia incapable of building world-class auto company independently – minister

Peugeot to launch car production in Kaluga in 2011 despite crisis

IT & TELECOMS

SIM card sales in Russia set to rise 2% in 2009

Court adjourns Telenor appeal against order to pay $1.7 bln to VimpelCom until June 10

MTS could consolidate Comstar in stages – Sistema chief

MTS purchased $65.4 mln in iPhones in 2008, contract for next 3 years – $848 million

VimpelCom starts rolling 3G network out in Moscow

MegaFon seeks regulator’s clearance to buy Synterra

TRANSPORT

VEB, RZD, Transcontainer to collaborate on Europe-Asia corridor

Aeroflot expects lower 2008 IFRS results

RZD plans to place 15 bln rubles in bonds at end of June

FOOD & AGRICULTURE. PROCESS INDUSTRIES, FORESTRY & TIMBER

Wimm-Bill-Dann places 3 bln rubles in bonds on secondary market at 15.5%

Wimm-Bill-Dann Foods could pass on dividends

CHEMICALS & pharmaceuticals

Veropharm sees Q1 net profit drop 41% to $3.7 mln

CONSUMER GOODS. RETAIL

Sberbank, Sistema’s Novitsky creating retailer from Mosmart, Alpi - Kommersant

X5 Retail posts $82.1 mln Q1 losses, better than forecast

Magnit could spend 121.5 mln rubles on 2008 dividends

media

Russian fund buys 2% of Facebook for $200 mln, could invest $100 mln more

FINANCIAL & BUSINESS SERVICES

Retail bank deposits in Russia up 6.6% in 4 mths – CB

Past-due on Russian bank loans at 3.77% including Sberbank – CB

Deripaska refuses to cede control over Ingosstrakh to Italy’s Generali

CB doubtful about VTB share buyback

VTB not likely to sell all of planned additional share issue – official

Societe General boosts stake in Rosbank after Potanin sells 7%

Bank of Moscow lowers IFRS net profit by 32% in 2008

Raiffeisen Group’s consolidated net profit falls 74% in Russia for Q1

CIS

Ukrainian GDP may have fallen 20% in Q1 - Yushchenko

Ukraine’s GDP could shrink by 8%-12% in 2009 - analysts

Ukraine president allows privatization of some enterprises

Azerbaijan cuts discount rate to 2% from 3%

Georgian Natl Bank changes method for determining exchange rate

National Bank of Tajikistan to lower refinancing rate to 8%

Tajik Natl Bank vows to stabilize currency

Lithuanian GDP declines 13.6% in Q1 – adjusted stats

FORECASTS & MARKETS ANALYSIS

FINANCIAL MARKET

Dollar opens summer with losses for week of May 25-29

GOVERNMENT SECURITIES

GOVT RUBLE SECURITIES POST SLIGHT GAINS IN PAST WEEK

Eurobond market corrects down

STOCKS

RUSSIAN STOCK MARKET ENDS MAY WITH A BANG AS INDICES REACH YEAR-HIGHS

RESULTS OF RUSSIAN STOCKS TRADING IN RUSSIAN TRADING SYSTEM

STOCK INDEXES

CORPORATE BONDS

Cbond market to edge up in coming week

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

Agency Interfax