Russian News: May 27th, 2008!

RBC, 27.05.2008, Moscow 14:45:29.Russia's government has filed a lawsuit in France against Swiss company Noga requesting the payment of significant damages caused by Noga's unlawful arrest of Russia's assets in France, the Finance Ministry reported today.

RBC, 27.05.2008, Moscow 14:39:48.Russia's President Dmitry Medvedev has ordered his government to curb inflation, stressing that this is a key task for the time being, the Mayak radio station quoted the President as saying at a meeting with Finance Minister Alexei Kudrin. In turn, Kudrin noted that the government had been able to bring the growth rate of the money supply in the economy into line with the plans that had been endorsed by the State Duma and the government's monetary policy guidelines. The Deputy PM promised that the measures taken by the Finance Ministry and the Central Bank of Russia will permit to not only reduce further consumer price growth, but also quash inflation within the next half a year. The Finance Ministry is monitoring the major monetary policy parameters, and, according to Kudrin, at the moment they look much better than they did a year ago.

RBC, 27.05.2008, Moscow 13:50:48.A meeting of the Working Party on Russia's accession to the World Trade Organization (WTO) will begin on June 16, 2008, the Russian Economy Ministry's press office reported. The Working Party will meet for a week to review the latest version of the consolidated report on Russia's entry to the WTO, which was adopted at the previous meeting.

RBC, 27.05.2008, Moscow 13:28:56.A transition to equal profitability of natural gas supplies on the domestic market and abroad will be completed in 2014-2015, Deputy Economy Minister Andrei Klepach said during today's meeting of a trilateral commission for the regulation of social and economic relations. The government decided to stick to its plan providing for bringing the prices of domestic gas supplies to the level of export prices excluding duties and transportation costs. However, the fulfillment of the plan was postponed by several years, so equal profitability of gas supplies will not be attained in 2011, as originally planned, Klepach said.

RBC, 27.05.2008, Moscow 12:42:54.Foreign Ministers Eduard Nalbandian of Armenia and Sergei Lavrov of Russia will discuss cooperation between the two countries as part of the Commonwealth of Independent States (CIS) and the Collective Security Treaty Organization (CSTO), the Russian ministry's representative Andrei Nesterenko reported. He indicated that the Armenian Foreign Minister would pay a working visit to Moscow on May 29-June 1 to touch base on Russia and Armenia's approaches to international issues of primary importance and to further coordinate Moscow and Yerevan's foreign policies, particularly as part of continuing their joint work as part of the CIS and the CSTO, international organizations, such as the UN, the Council of Europe, and the OSCE, and multilateral forums.

RBC, 26.05.2008, Moscow 18:56:18.Russia has written off a $20bn debt of Africa's poorest countries, Russia's Foreign Minister Sergei Lavrov said today. He added that Russia was doing a lot to ease the debt burden of poor countries owing large debts to the International Monetary Fund (IMF) and the International Development Association (IDA). Lavrov indicated that Russia had cancelled roughly half of the sum over the last two years.

RBC, 26.05.2008, Moscow 17:57:09.The Russian Defense Ministry has refuted the claims of the UN mission in the zone of the Georgian-Abkhaz conflict that the Georgian unmanned aircraft was shot down by the Russian air force on April 20, the head of the ministry's press office, Colonel Alexander Drobyshevsky told RBC. He reiterated that Russian military airplanes had not violated Georgia's state border either on April 20 or on any other day, nor had they shoot down Georgian unmanned aircraft.

RBC, 26.05.2008, Moscow 14:32:31.The US Department of Commerce has set a zero import duty on carbamide supplied by EuroChem, the Russian mineral and chemical company said in a statement today.

RBC, 26.05.2008, Moscow 13:45:19.Russian Prime Minister Vladimir Putin has requested that a bill on trade regulation is introduced in the government before Friday, the government's press officer reported today. The decision was made on the basis of a meeting on improving Russia's agricultural policy that was held in Yessentuki on May 19. Putin also commissioned several ministries and government bodies to take steps to carry out the federal program on the development of agriculture and regulation of agricultural products markets for 2008-2012.

RBC, 26.05.2008, Moscow 13:49:25.Fighting corruption is a top priority for Russia’s new President Dmitry Medvedev. The anti-corruption council could be transformed into a new powerful body to keep a close eye on officials and their families. Medvedev seems to have received carte blanche from Putin to root out corruption, experts say. At the same time, the campaign will allow Medvedev to strengthen his grip on power, making new appointments. Yesterday Medvedev discussed anti-corruption methods with officials and members of the public. In the absence of Prime Minister Vladimir Putin, the government was represented by his deputy and government chief-of-staff Sergei Sobyanin. After the meeting, reporters were told that Medvedev would chair an anti-corruption council, and an interdepartmental group would be heated by Sergei Naryshkin, chief-of-staff to President Medvedev.

Russian News: May 23rd, 2008!

RBC, 23.05.2008, Moscow 14:52:43.The National Banking Board may review the Russian banking sector's development strategy until 2020 in the fall of 2008, President of the Association of Regional Banks of Russia, State Duma deputy Anatoly Aksakov said during the association's general annual meeting. If the board approves the strategy, the document will be almost mandatory for the authorities, Aksakov stated. A draft strategy has already been devised, and a working group to be headed by the association's First Deputy President Alexander Khandruyev will be created to finalize it. The document is to be prepared before the beginning of the Sochi economic forum scheduled for September 2008. It must be in line with financial markets' development strategy and provide for closing the 22-fold gap between the incomes of the rich and the poor, reducing inequality between Russia's regions, and maintaining the country's economic sovereignty, Aksakov noted.

RBC, 23.05.2008, Moscow 14:09:05.According to preliminary data, Russian producer prices grew 4.5 percent in April 2008 and 26.6 percent between January and April, the Russian Federal State Statistics Service (Rosstat) reported. As stated in the federal service's document, the price of crude oil and associated gas jumped 9 percent and the price of natural gas and gas condensate rose 6 percent, while a 4.9-percent decline in prices was seen within the non-ferrous iron ore mining segment. Prices increased in the manufacturing sector (certain refined oil products), metallurgy and the chemical industry, while the price of electricity produced domestically slid 5.5 percent, and the price of electricity supplied to industrial consumers and agricultural producers dropped 1.4 percent.

RBC, 23.05.2008, Moscow 13:42:21.At today's annual general meeting, NOVATEK shareholders approved the payment of RUB 1.52 (approx. USD 0.06) per share as dividend for 2007, one of the shareholders told RBC. Consequently, combined with an interim dividend of RUB 0.83 (approx. USD 0.04) paid for the first half of 2007, total dividend for the 2007 fiscal year will amount to RUB 2.35 (approx. USD 0.10) per common share. As reported earlier, NOVATEK paid RUB 1.10 (approx. USD 0.05) per common share for 2006, with the total payout, including interim dividend payments, amounting to RUB 5bn (approx. USD 212m).

RBC, 23.05.2008, London 13:15:36.Severstal has reached an agreement on the acquisition of up to 61.5 percent of African Iron Ore Group Ltd. (AIOG) shares, the Russian steel producer said in a press release today. AIOG's subsidiaries have a license for conducting a geological survey at the Putu Range iron ore deposit in Liberia. In addition, Severstal is expected to buy a 6.29-percent stake in Mano River Resources Inc., which holds a controlling stake in AIOG. The Russian company is to pay $37.5m for the stake in AIOG, while the price of the second deal is estimated at GBP 2m (USD 3.9m). Both deals will be implemented through Severstal's Dutch subsidiary Lybica Holding B.V.

RBC, 23.05.2008, Moscow 12:23:04.According to preliminary data, real disposable cash incomes of Russians grew 11.8 percent in January-April 2008 compared to the same month a year earlier, the Federal State Statistics Service (Rosstat) said in a report today. The average monthly accrued wages climbed 28.1 percent to RUB 16,253 (approx. USD 689) in April 2008 against April 2007 and went up 28 percent in the first four months of 2008 compared to January-April 2007.

RBC, 23.05.2008, Moscow 12:03:25.Today's session on the Russian stock market opened with a rise in most traded securities. On MICEX, the majority of stocks went up 0.5 percent on average within the first few minutes of trade. Meanwhile, Polyus Gold, Norilsk Nickel, and Gazprom Neft traded below yesterday's close. However, the situation changed after the first 30 minutes of trade, as only Sberbank, Rosneft and Polyus Gold remained in positive territory. Most securities declined 0.5 percent on average and the RTS index was slightly down.

RBC, 23.05.2008, Moscow 11:12:00.Russia's natural gas production rose 1.3 percent to 56.9bn cubic meters in April 2008 compared to the same month a year earlier, the Federal State Statistics Service (Rosstat) reported today. Meanwhile, gas output fell 4.4 percent in April against the previous month.

RBC, 23.05.2008, Moscow 11:01:54.Russia's retail trade grew 13.2 percent to roughly RUB 1.058 trillion (approx. USD 44.9bn) in April 2008 compared to the same month a year earlier, the Federal State Statistics Service (Rosstat) reported today. The figure edged up 0.3 percent in April compared to March.

RBC, 23.05.2008, Moscow 10:53:14.Russia's oil and gas condensate production inched down 0.7 percent to 39.7m tonnes in April 2008 compared to the same month a year earlier, the Federal State Statistics Service (Rosstat) reported today. Oil output shrank 3.6 percent in April compared to March.

RBC, 23.05.2008, Moscow 10:32:04.According to preliminary data, Russia's fixed investment grew 20.3 percent to RUB 529.6bn (approx. USD 22.5bn) in January-April 2008 compared to the same months a year earlier, the Federal State Statistics Service reported today. In April alone, fixed investment went up 2.2 against March.

RBC, 23.05.2008, Moscow 09:55:07.Russian Prime Minister Vladimir Putin is expected to arrive in Minsk today. As part of his visit, Putin will take part in the meeting of the heads of government of CIS member states. Moreover, the Russian PM intends to meet one-on-one with his Ukrainian counterpart Yulia Timoshenko, who will be chairing the meeting the the commonwealth's Prime Ministers. The chairmanship will be handed over to Belarus during this meeting.

RBC, 23.05.2008, Moscow 09:28:15.Russian President Dmitry Medvedev will today begin his official visit to the People's Republic of China. He is visiting China at the invitation of the country's President Hu Jintao. At the talks in Beijing, the leaders intend to discuss cooperation in the nuclear industry, fuel and energy, and investment. Particular attention will be paid to the matter of state support of banking institutions and mechanisms. Moreover, such issues will be considered as collaboration in civil aviation, migration, and environment.

RBC, 22.05.2008, Kiev 19:31:06.Whether to increase the capacity of the Caspian Pipeline Consortium or not is to be resolved by the end of May 2008, Deputy Energy and Mineral Resources Minister of Kazakhstan Lyazat Kiinov told an energy forum in Kiev today. He added that the issue had been settled in principle, and shareholder approvals were expected in the near future. He regretted that there had been no serious discussions of linking the Caspial pipeline project to the Odessa-Brody pipeline. This would require an additional leg of 150 kilometers, including across the Russian territory. For this, in turn, Russia's agreement would be needed. Yet, this link is approved, there would be no difficulty in finding enough oil to load the Oddessa-Brody pipeline, the Deputy Minister assured. According to Kiinov, the Caspian pipeline would be able to carry some 67m tonnes of oil, of which some 37m tonnes could be bound via the Ukrainian route.

RBC, 22.05.2008, Moscow 16:32:35.The government board is to consider on Monday a reduction in the tax burden for the oil industry, a source close to the cabinet told journalists today. The bills are to be introduced to the State Duma during the spring session. The matter of the extension of a tax holiday to several Russian regions, as well as methods of calculation of oil production will also be reviewed during the session, the source said.

RBC, 22.05.2008, Tbilisi 14:58:07.International observers from the CIS, who monitored Georgia's parliamentary election on Wednesday, have named it democratic. Although there have been some violations, they cannot affect the election results, the observers said in a statement today. They also noted that Georgia had created all necessary conditions for monitoring the election.

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Russian News: 05-20-2008

RBC, 20.05.2008, Moscow 09:58:13.The Executive Board of the international special-purpose entity (SPE) Trans-Balkan Pipeline B.V. has resolved 10 out of 12 issues regarding the implementation of the Burgas-Alexandroupolis oil pipeline project during its first ever meeting held in Amsterdam on May 15, head of the Executive Board, the company's President Sergei Vinnichenko told RBC on Monday. Among the most important matters he named the agreement in principle of the board's members to raise the company's initial budget (currently set at EUR 5.8m), depending on the future need for additional funding to make a feasibility study. The existing budget is not enough to launch the project, Vinnichenko said, adding that the required figure would only be determined after talks with the potential contractor on the feasibility study, which had yet to start.

RBC, 20.05.2008, Moscow 09:23:49.Russian Prime Minister Vladimir Putin will hold a meeting on the development of Russia's transportation system in 2010-2015 in Sochi today, the government's press office reported. The PM is also expected to visit the "Transport in Russia Ч 2008" international exhibition.

RBC, 19.05.2008, Moscow 19:44:51.The Board of Directors of Mobile TeleSystems (MTS), Russia's mobile services provider, recommended that the company's shareholders approve nearly RUB 29.581bn (approx. USD 1.24bn) as the total dividend payment for 2007, which is 1.5 times more than in 2006, the company's official documents show. Hence, the dividend per share is recommended at RUB 14.84 (approx. USD 0.622). MTS's President Leonid Melamed stated earlier that he expected the dividend payment to top USD 1bn, in line with the dividend policy that the company adopted in 2007.

RBC, 19.05.2008, Moscow 19:19:19.At their meeting today, Gazprom's Chairman Alexei Miller, and Armenia's President Serzh Sargsyan and Prime Minister Tigran Sargsian agreed to sign a mid-term gas supply contract. Until January 2009, Armenia will be buying Russian gas at $110 per 1,000 cubic meters. By 2011, the countries expect Armenia (as well as Russia's domestic consumers) to pay European-level prices, Gazprom's press office reported.

RBC, 19.05.2008, Moscow 15:28:45.Korolev Rocket and Space Corporation Energia's Board of Directors has recommended that its shareholders approve a dividend of RUB 30 (approx. USD 1.26) per common share for 2007, the corporation stated today. The total payout will amount to roughly RUB 33.712m (approx. USD 1.414m), while net profit reached some RUB 130.071m (approx. USD 5.46m) in 2007.

RBC, 19.05.2008, Moscow 14:47:57.Two and a half hours before the close of today's special dollar trading session for tomorrow deals, the high on deals remained unchanged at 23.80 RUB/USD, while the low on deals fell RUB 0.04 to 23.69 RUB/USD. Meanwhile, the weighted average exchange rate stood at 23.71 RUB/USD, RUB 0.01 lower than the official rate set by the Bank of Russia for May 20. The current developments on MICEX can be attributed to the dollar's decline against the euro on international exchanges. The latter is now trading at some USD 1.5590, up from roughly USD 1.5570 in the morning.

RBC, 19.05.2008, Moscow 13:44:17.A council for the fight against corruption will be established in Russia, and will be chaired by the country's leader, the President's Chief-of-Staff Sergei Naryshkin reported following an anti-corruption meeting with the President today. Naryshkin was also quoted by the Mayak radio station as saying that it had been decided to form an interdepartmental group for the fight against corruption, to be headed by himself. According to the Chief-of-Staff, Dmitry Medvedev had charged the participants of the meeting to prepare a national plan for countering corruption. In turn, Russia's General Prosecutor Yury Chaika added that the plan would be approved by a presidential decree.

RBC, 19.05.2008, Moscow 12:26:36.Sukhoi Civil Aircraft Company (SCAC) carried out the first flight of the Sukhoi SuperJet-100 (SSJ-100) Russian regional jet in Komsomolsk-on-Amur today, the company's press office told RBC. The plane was in the air for one hour and five minutes, reached the altitude of roughly 1,200 meters, and landed safely. The flight was preceded by a variety of trials, as all systems were tested on the ground.

RBC, 19.05.2008, Moscow 09:58:38.Russia has won first place in the ice hockey World Championship, beating Canada 5-4 in the final match. This is Russia's first "gold" since 1993, when the current Russian chief coach Vyacheslav Bykov played for the Russian team. This was also the first ever game, in which Russia played versus Canada in the World Championship finals.

RBC, 19.05.2008, Moscow 09:24:42.A Russian delegation will resume multilateral consultations in Geneva on Russia's accession to the World Trade Organization (WTO), which will last until the end of the month. It is expected that the delegation will be led by head of the Russian Economy Ministry's trade negotiations department Maxim Medvedkov. As part of the preparation of the final document, Russia will discuss with its key trade partners such systemic issues as customs and technical regulation, protection of intellectual property rights, and state support of agricultural producers. The major issue that has yet to be agreed upon with the US and the Cairns Group (an interest group of agricultural exporting countries) is the size of agricultural subsidies.

RUSSIA

* Russian President Dmitry Medvedev has signed a decree on measures to counter corruption, the Kremlin said on Monday

* Russian President Dmitry Medvedev has appointed Arkady Dvorkovich sherpa in the Group of Eight industrialized nations, and also reappointed four officials as heads of presidential administration departments, the Kremlin said on Monday

* Russian Prime Minister Vladimir Putin issued instructions on Monday to assess and check foreign trade contracts in the agricultural sphere for their compliance with the country's interests

* Russia's new Voronezh-type radar site in the southern town of Armavir will be put on combat duty in February 2009, the commander of the Russian Space Forces said

* Russia's Maria Sharapova once again heads the rating list of the Women Tennis Association after the former World No. 1, Justine Henin of Belgium, announced she was quitting tennis last week

* Dmitry Medvedev has appointed Sergei Ushakov as a presidential adviser, the Kremlin press service said on Monday

* Irina Khakamada, a well-known Russian opposition figure, told RIA Novosti on Monday that she had quit politics

* The first charter planes carrying Manchester United and Chelsea supporters have arrived in Moscow as the Russian capital gears up to host the first all- English final in the history of Europe's most prestigious club competition

* Russian President Dmitry Medvedev will head an anti-corruption council to be set up in Russia in the near future, Kremlin chief of staff Sergei Naryshkin said after a presidential conference

* Agricultural experts have detected bird flu antibodies in migratory birds in southern Siberia, Russia's agricultural watchdog said in a statement Monday

* A Tajik national in possession of over 5 kg (11 lbs) of heroin has been detained near Moscow's Kazansky railway station, a police source said

* Russia's new Superjet 100 medium-haul passenger airliner made its first test flight on Monday, a spokesman for manufacturer Sukhoi Civil Aircraft said

* A new round of bilateral and multilateral talks on Russia's bid to join the World Trade Organization (WTO) will begin in Geneva on Monday, Russia's chief delegate to the talks said

* Eighteen people including 15 Russians were injured when a tourist bus crashed in Ukraine's Crimean peninsula, a spokesman for the local emergencies service said on Monday

WORLD

* During a meeting with the UN envoy to Afghanistan on Monday Iran's president said that foreign intervention in Afghanistan would not solve the problems in the country

* The government of Kosovo has adopted a law on public holidays in the "world's newest state", Serbia's Tanyug news agency reported

* An Estonian court said the trial of a 88-year-old WWII veteran and Hero of the Soviet Union on charges of genocide is due to start on May 20 in the town of Kardla in the country's western island of Hiiumaa

* The cost of damage from Myanmar's Cyclone Nargis, which hit the Southeast Asian country over two weeks ago, has been assessed at over $10 billion, national media said on Monday, citing Myanmar Foreign Minister Nyan Win

* Kazakhstan has banned the export of petroleum products in a bid to stem price growth on the domestic market, Prime Minister Karim Masimov said on Monday

* The European Bank for Reconstruction and Development will donate 135 million euros to support international efforts to clean up the territory of the Chernobyl nuclear power plant, the bank said on Monday

* Russia's national ice hockey team beat Canada 5-4 in overtime in the final of the 2008 IIHF World Championship in Canada to become world champions for the first time in 15 years

* The Ukrainian government plans to involve the international community in an investigation into a mineral license scandal concerning a U.S. oil company, Prime Minister Yulia Tymoshenko said

* Another two Russian aircraft will deliver humanitarian aid to southwest China, which was devastated by an earthquake May 12, the Russian Emergencies Ministry said

* Georgia and its breakaway republic of Abkhazia have drawn up a plan to resolve their long-running conflict, a Russian business daily reported

* Eight people have been killed and nine injured in two terrorist attacks in Afghanistan, the country's interior and defense ministries announced on Monday

* Some 200 relief workers have been buried in landslides over the past three days in China's quake-hit province of Sichuan, the Xinhua news agency reported on Monday

* A group of Syrian military officials arrived in Moscow on Monday to discuss prospects for bilateral military and technical cooperation, a Russian Air Force spokesman said

BUSINESS

* Novatek said on Monday its net profit calculated to International Financial Reporting Standards (IFRS) grew 80%, year on year, in January-March 2008 to 7.5 billion rubles ($315 million)

* Severstal, Russia's top steelmaker, said on Monday it had signed an agreement to buy 100% of U.S.-based WCI Steel's shares for $140 million

* Russia's crude exports declined 3.3% year-on-year in the first quarter to 61.1 million metric tons (448 million barrels), the country's top statistics body said on Monday

* Russia's largest steel producer Severstal is set to issue $1.5 billion in Eurobonds and could invest the funds in buying U.S. steelmaker Esmark, business daily Vedomosti reported

* The European Union said it had cleared the joint venture between SolVin, owned by the Solvay Group, BASF, and the Russian energy giant Gazprom's Sibur

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Russian News: May 16th, 2008!

RBC, 16.05.2008, Moscow 11:53:03.After an hour and a half of today's special dollar trading session for tomorrow deals, the weighted average exchange rate stood at 23.84 RUB/USD. The official rate for May 17-19 could therefore be revised RUB 0.01 lower. Considering that the dollar, in contrast, climbed RUB 0.13 against the ruble over the two previous sessions, the latter currency has been able to recoup only some of that loss today. The current developments on MICEX can be attributed to the euro's slight advance against the dollar on international exchanges. Meanwhile, commercial bank activity has been consistently high, and the trade volume amounted to USD 828m as of 11:30 a.m.

RBC, 16.05.2008, Moscow 11:20:38.Open Investments has set the offering price for its additional share issue at RUB 6,915 (approx. USD 289.9) per share, the investment and development company's official documents state. The flotation was launched today, and the company is planning to place 1,692,252 shares with a par value of RUB 1,000 (approx. USD 41.93) each. The company's shareholders can exercise preemptive right to acquire additionally issued shares in proportion to the amount of shares they already own.

RBC, 16.05.2008, Moscow 10:55:37.During an annual meeting, Evraz Group shareholders approved a dividend of $4.2 per common share and $1.4 per GDR for 2007, the company's press office reported today. Therefore, the total payout for 2007 will amount to $9 per share and $3 per GDR, including interim dividend. The record date for the payment of dividend was set for May 14. In addition, the shareholders have appointed Ernst & Young as the company's auditor.

RBC, 16.05.2008, Moscow 09:57:28.Russia has sent its first rescue crew of the Emergency Ministry to China to help the search and rescue operations which have been underway in the country after this week's earthquake, the ministry's press office said. The crew consists of 49 specialists, including 29 rescuers, 13 doctors and 3 psychologists. Yesterday, the ministry reported that two Il-76 transport planes were bound for China carrying 87 crew members and an airborne hospital. The second plane will take 38 people to China, including 28 doctors of the Emergency Ministry, and seven tonnes of medicines alongside the hospital facilities.

RBC, 15.05.2008, Moscow 16:55:31.According to preliminary estimates, Russia's cash budget surplus reached some RUB 1.084 trillion (approx. USD 45bn) in January-April 2008, the Finance Ministry reported today. The primary surplus (excluding foreign debt repayments) amounted to nearly RUB 1.143 trillion (approx. USD 47.9bn). Budget revenue stood at roughly RUB 3.025 trillion (approx. USD 127bn), or 37.5 percent of the target for 2008, while cash budget spending totaled nearly RUB 1.941 trillion (approx. USD 81bn), or 26.2 percent of the amended target.

RBC, 15.05.2008, Moscow 15:29:51.The Russian government must present a draft federal budget for 2009-2011 to the State Duma in August 2008, Russian Prime Minister Vladimir Putin said during a cabinet meeting today. He stressed that the document needed to determine the country's priorities and key macroeconomic objectives. It also must include exact and realistic estimates, as well as take into account the current trends in the global economy, Putin noted.

RBC, 15.05.2008, Moscow 14:07:19.Aeroflot - Russian Airlines' net profit under RAS stood at RUB 1.336bn (approx. USD 56m) in the first quarter of 2008 against a RUB 1.15bn (approx. USD 48m) loss a year before, Russia's flagship air carrier reported. As reported earlier, Aeroflot's annual net profit fell 23.89 percent to RUB 6.074bn (approx. USD 255m) in 2007 compared to a year earlier.

RBC, 15.05.2008, Moscow 10:49:44.Mongolia's President Nambaryn Enkhbayar will pay a working visit to Moscow on May 15-18. During a meeting with his Russian counterpart Dmitry Medvedev scheduled for Friday, the two Presidents are expected to discuss a large number of issues regarding bilateral relations, as well as exchange opinions on international and regional problems of mutual interest, the Russian leader's press office reported today.

RBC, 15.05.2008, Moscow 13:52:56.Prime Minister Vladimir Putin has put forward a proposal at today's cabinet meeting to set up a government board. The board is required to enhance the government's efficiency and flexibility, as it is obvious that government meetings are a slow and bureaucratic process, the Prime Minister said. The board will include Deputy Prime Ministers and some ministers. Government meetings are to be held at least once a month, and all current issues would be resolved by the government board weekly, with particular ministers invited to attend.

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Russian News: May 6th, 2008

RBC, Moscow 16:28:36.The United Aircraft Building Corporation's (UABC) net profit
under RAS amounted to RUB 121.034m (approx. USD 5m) , the company reported. Revenue totaled RUB 27.151m (approx. USD 1.14m). Proceeds from the participation in other organizations reached RUB 265.24m (approx. USD 11m). Earlier, UABC President Alexei Fyodorov announced that sales of all the companies part of the United Aircraft Building Corporation were estimated to reach at RUB 120bn (approx. USD 5bn).

RBC, Moscow 15:53:30.Russia's external debt shrank 1.7 percent in the first quarter of 2008, from $44.9bn as of January 1, 2008 to $44.1bn as of April 1, 2008, the Russian Finance Ministry reported. The outstanding debt to Paris Club creditors decreased 11 percent to $1.6bn.

RBC, Moscow 15:31:20.The Russian stock market will trade moderately positive this week, experts told RBC TV, adding that the RTS index would try to reach a level within the range of 2,160-2,180 points. The rise is most likely to be bolstered by Gazprom and Sberbank, as well as other key index growth drivers. Meanwhile, low trading activity will persist on the Russian market until the end of the week, despite the upcoming presidential inauguration and subsequent stepped-up government activity. The banking sector's potential is seen as high in the longer term, with predictions of prices not only reaching their IPO levels, but also hitting some new highs.

RBC, Moscow 14:59:35.OGK-1's net profit under IFRS dropped by a factor of three to RUB 1.966bn (approx. USD 83m) in 2007 compared to a year earlier, the Russian power generation company said in a statement. Revenue grew 49 percent to RUB 44.891bn (approx. USD 1.887bn). Pre-tax profit shrank three times to RUB 2.748bn (approx. USD 116m).

RBC, Moscow 13:47:16.Russian President Vladimir Putin has signed a federal law setting out the procedure for foreign investment in enterprises considered as strategically important to ensure national security, the leader's press office reported. The bill was passed by the State Duma on April 2 and approved by the Federation Council on April 16.

RBC, Moscow 13:23:27.Georgia is discrediting the Russian peacekeeping mission in the Georgia-Abkhazia conflict zone in order to justify the use of military force, the Russian Defense Ministry believes. The ministry's information and media relations department announced today that it had been with the support of several NATO nations and foreign-sponsored military build-up that Georgian politicians began to feel they were in a position to discredit Russian peacekeeping efforts and condone the use of military force in settling ethnic conflicts. A Defense Ministry source said the May 4 incident with two Georgian spy planes shot down by Abkhaz air defense proved that Tbilisi had long given up on resolving the conflict peacefully.

RBC, Moscow 11:55:05.AVTOVAZ's sales grew 22.8 percent to 212,200 cars between January and April 2008 from the same period a year earlier. During the first four months of 2008, AVTOVAZ sold 56,600 Lada Samaras, 59,600 Lada 2105/2107s, 57,900 Lada 111/112/Prioras, 30,600 Lada Kalinas, and 7,500 Lada 4x4s, exporting over 37,400 Ladas, 15 percent more than in January-April 2007. In April 2008 alone, over 67,000 AVTOVAZ-produced cars were sold on the Russian market, 29 percent more than during the same month of 2007.

RBC, Moscow 15:47:44.Russia's National Welfare Fund totaled RUB 773.82bn, or USD 32.72bn, as of May 1, 2008, the Finance Ministry reported. The balance on the Fund's foreign currency accounts amounted to USD 14.31bn, EUR 9.74bn and GBP 1.62bn. The Ministry estimated the return on investment of the fund's reserves at USD 0.23bn, or RUB 5.36bn for the period between January 30 and April 30. The figures were calculated based on official foreign exchange rates of the Bank of Russia as of the date previous to the reporting date.

RBC, Moscow 14:44:14.Russia's customs offices transferred some RUB 371.87bn (approx. USD 15.72bn) to the federal budget in April 2008, which is 11.08 percent, or RUB 37.1bn (approx. USD 1.57bn), above the target, according to Russia's Federal Customs Service. Hence, the total year-to-date contribution of the customs authorities reached RUB 1.375 trillion (approx. USD 58.115bn), exceeding the target by 4.39 percent.

RBC, Moscow 12:58:20.Novorossiysk Commercial Sea Port (NCSP) has acquired 50 percent in Lomonosov Cargo Terminal for EUR 77m from Frameno Limited, the port indicated in a press release. The deal was reached on May 1, 2008. The state controls 20 percent in the Russian ports operator was established in 1992.

RBC, Moscow 11:43:06.Wimm-Bill-Dann Foods has scheduled its annual general shareholders meeting for June 27, 2008. The meeting will be held on a standard agenda. This was reported in a statement the company released today. The record date is May 12, 2008.

RBC, Moscow 14:58:53.As of May 1, 2008, Russia's Reserve Fund amounted to RUB 3.069 trillion, or USD 129.80bn, the Finance Ministry reported. The balance on foreign currency accounts stood at USD 56.95bn, EUR 38.57bn, and GBP 6.37bn. The return on investments for the period between January 30 and April 30 was estimated at USD 0.85bn, or RUB 20.08bn. The figures were calculated based on the official foreign exchange rates of the Bank of Russia as of the date previous to the reporting date.

RBC, Moscow 12:47:26.The RAS-based net profit of Surgutneftegas nearly doubled in the first quarter of 2008 compared with the same figure a year earlier, reaching virtually RUB 19.519bn (approx. USD 824.98m), the company said in a statement. However, this is 38.89 percent below the respective Q4 figure of RUB 31.942bn (approx. USD 1.35bn).

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Russian News: April 29th, 2008!

RBC, 29.04.2008, Moscow 13:47:20.Sberbank's net profit under IFRS jumped 28.6 percent to RUB 106.5bn (approx. USD 4.51bn) in 2007 compared to the previous year, the bank indicated in its financial statement. Assets amounted to nearly RUB 4.929 trillion (approx. USD 208.86bn) as of January 1, 2008, which is 42.2 percent greater than the previous showing as of January 1, 2007. The bank's return on average assets (ROAA) stood at 2.5 percent.

RBC, 29.04.2008, Moscow 13:38:14.LUKoil's net profit under RAS grew nearly 70 percent to over RUB 13.231bn (approx. USD 561m) in the first quarter of 2008 compared to the same period a year earlier, the Russian oil producer said in a statement. Meanwhile, net profit slid 14.4 percent from just over RUB 15.45bn (approx. USD 655m) in Q4 2007, as gross profit fell, triggered by changes in the company's sales structure and higher export duties. Moreover, a negative revaluation of LUKoil's long-term financial investments in terms of stocks traded on the organized securities market has also had an impact on the company's profit.

RBC, 29.04.2008, Moscow 12:58:06.Raising the Central Bank discount rate by 0.25 percent will not have a considerable macroeconomic effect, head of the Russian Finance Ministry's financial policy department Alexei Savatyugin told a Standard&Poors' and VTB Bank seminar today, adding that hiking the rate by a quarter-percentage point was not that significant of an increase, and would play no major macroeconomic role. In the official's opinion, by upgrading the rate the Central Bank is confirming that it shares the Finance Ministry's concerns of an overheating economy and that all the monetary authorities have a common view of the macroeconomic situation in the country. Savatyugin also noted that the rate hike would send a signal to the market that the Bank of Russia was changing its trend and policy. He added that the decision would result in commercial banks raising their rates, as well.

RBC, 29.04.2008, Moscow 12:54:25.VTB's Chairman and CEO Andrei Kostin is wary of the consequences of the recent rise in the Central Bank's discount rate, he told journalists today. He said that he was disconcerted by the government's anti-inflation policy focusing only on the banking sector. The government needs to find other means of curbing inflation than putting restrictions on banking activities, Kostin noted. He pointed out that the hike in the discount rate could result in higher interest rates.

RBC, 29.04.2008, Moscow 12:21:59.At the opening of today's session on the Russian stock market, share prices remained virtually unchanged and showed no defined trend. After the first few minutes of trade on MICEX, LUKoil, RAO UES, and VTB dipped, while Gazprom, Sberbank, and Norilsk Nickel edged up. The RTS index opened in negative territory despite a slight rise in LUKoil, RAO UES, and Norilsk Nickel. Traders believe that the market will be stable today, while trading activity will be below average prior to the May holidays.

RBC, 29.04.2008, Moscow 11:59:22.Deputy Prime Minister Alexander Zhukov expects the State Duma to pass a number of draft laws in support of small businesses. Speaking during a meeting of a governmental commission for the development of small and medium businesses in Russia, Zhukov called on the deputies to pass the bills as soon as possible. Specifically, the documents include the terms of participation of small businesses in the privatization of leased state property. Furthermore, Zhukov pointed out that the Economy and Finance Ministries must present bills to the government on improving the taxation legislation for small businesses and facilitating their accounting procedures.

RBC, 29.04.2008, Moscow 10:23:40.At the opening of today's special dollar trading session for tomorrow deals, the weighted average exchange rate stood at 23.64 RUB/USD, RUB 0.04 higher than the official rate set by the Bank of Russia for April 29. The current developments on MICEX can be traced to the dollar's appreciation against the euro on international exchanges. The latter is now trading at USD 1.5637, down 0.13 percent from USD 1.5658 at the opening on Monday.

RBC, 29.04.2008, Moscow 09:26:41.Greece's Prime Minister Konstandinos Karamanlis will embark on a working visit to Moscow today at the invitation of Russian President Vladimir Putin. He is expected to meet the Russian leader and President-elect Dmitry Medvedev in order to discuss an intergovernmental agreement on Greece's joining the South Stream gas pipeline project.

RBC, 28.04.2008, Kiev 15:35:21.Ukraine has fully repaid its debt for Russian natural gas, Ukraine's Prime Minister Yulia Timoshenko said during today's meeting of the Russia-Ukraine intergovernmental commission's economic cooperation committee.On April 23, Timoshenko noted that Ukraine had already earmarked the funds for the repayment of its gas debt to Russia and that it would settle the debt as soon as the two countries signed the required documents. According to Naftogaz of Ukraine's data, the company transferred over USD 1bn for this purpose during the past week.

RBC, 28.04.2008, Moscow 19:57:43.By 2020, Russia could face a staff deficit of between 8m and 22m people, according to various estimates, Deputy Health Minister Alexander Safonov told a round table on Russia's employment problems. He stressed that even now, the shortage was considerable, and was not only of a quantitative, but also a qualitative nature. The primary and manufacturing sectors are seeing a steep decline in staffing, while the accident rate continues to soar.

RBC, 28.04.2008, Moscow 18:28:04.Ukraine expects to sign a strategic agreement with Russia on natural gas supply and transit for ten years or more, the country's Prime Minister Yulia Timoshenko said following today's talks with her Russian counterpart Viktor Zubkov. The goal is stated in the minutes of the meeting of the two countries' economic cooperation committee, Timoshenko noted. Once existing gas problems have been settled, the two countries must develop strategic cooperation, she noted, adding that such an agreement would enable the parties to estimate the openness and transparency of their gas policy.

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Russian News: April 22nd, 2008!

RBC, 22.04.2008, Moscow 17:59:56.Head of the Russian air force, Colonel-General Alexander Zelin, today denied any links of the Russian military aviation to the shooting-down of an unmanned aircraft in Abkhazia's airspace. ''The Russian air force had nothing to do with it, we have absolutely no business on the territory where the incident took place,'' he told journalists.

RBC, 22.04.2008, Moscow 17:23:10.President of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin told journalists today that a decision on a VAT rate change must be made as soon as possible. Tax decisions should be made before a long-term program (until 2020) is approved and a three-year budget is presented to the State Duma, Shokhin noted. He was wary that tax changes would not be reflected in the three-year budget and, as a result, would not be implemented until 2012.

RBC, 22.04.2008, Sochi 16:28:45.Russia's Prime Minister Viktor Zubkov assured the International Olympic Committee's Coordination Commission during today's meeting that Sochi would be fully prepared for the 2014 Olympic Games. The PM pointed out that a presidential council responsible for preparations for the Olympics had been set up and that its presidium maintained strict control over the preparations. Combined with Russia's economic and political stability, this gives confidence that an ultra-modern sports center, as well as an international resort will be built in Sochi, Zubkov noted.

RBC, 22.04.2008, Moscow 16:00:46.Less than an hour and a half before the close of today's special dollar trading session for tomorrow deals, the weighted average exchange rate stood at 23.39 RUB/USD, RUB 0.04 lower than the official rate set by the Bank of Russia for April 23. The current developments on MICEX can be attributed to the dollar's continuous decline against the euro on international exchanges. The latter is now trading at roughly USD 1.5940, up from around USD 1.5930 as of 3 p.m. Consequently, the European currency has advanced some 0.1 percent against the dollar on the global market over a short period.

RBC, 22.04.2008, Moscow 15:56:29.Russian President Vladimir Putin has invited the leaders of the CIS countries to participate in the 12th St. Petersburg International Economic Forum scheduled for June 6-8, the Russian President's press office reported today. Among the forum's main topics will be "National Economic Interests versus Global Governance Institutions" and "SWOT Analysis of the Russian Economy - Global Challenges and Opportunities up to 2020". Putin also offered the CIS heads of state to hold an informal meeting as part of the forum program.

RBC, 22.04.2008, Moscow 15:31:31.The Russian stock market could continue to consolidate for several days, experts told RBC TV. Later, driven by a weaker dollar and rising commodity markets, Russian stocks are likely to rise, particularly the oil sector. LUKoil and Tatneft remain investors' favorites among oil companies, performing better than the market. Gazprom is also said to start gaining ground soon.

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Russian News: March 28th, 2008!

RBC, 28.03.2008, Moscow 11:40:45.According to the Economy Ministry's estimates, Russia's GDP growth stood at 7.8 percent in January-February 2008 compared to the same period a year earlier, the ministry's monitoring report on the economic situation in the country states. Meanwhile, GDP rose 8.2 percent in February 2008 against the same month of 2007.

RBC, 28.03.2008, Moscow 11:09:45.Rosneft's net profit under RAS decreased 1.3 times from nearly RUB 213.217bn (approx. USD 9.07bn) in 2006 to RUB 162bn (approx. USD 6.89bn) in 2007, the Russian oil producer said in a statement today. Meanwhile, Rosneft's net profit stood at RUB 70.691bn (approx. USD 3.01bn) in the fourth quarter of 2007, up 33.26 percent compared to RUB 53.047bn (approx. USD 2.26bn) in Q3 2007. Rosneft attributes the rise in quarterly profit to higher global prices of oil and oil products.

RBC, 28.03.2008, Moscow 10:59:11.Inflation is expected to reach 1-1.2 percent in Russia in March. This projection was made in a monitoring report on the macroeconomic situation in Russia for January-February 2008. As of March 17, Inflation stood at 0.6 percent. Consumer prices rose 1.2 percent (up from 1.1 percent a year earlier) in February and 3.5 percent over the first two months of 2008 (up from 2.8 percent over the same period of the previous year).

RBC, 28.03.2008, Moscow 10:27:27.More than half of Russians (55 percent) feel that innovations will improve the country's economy and social life, a poll conducted by the Russian Public Opinion Research Center (VCIOM) showed. Younger people were especially optimistic about innovations, with 65 percent of respondents between 18 and 24 years old sharing this opinion. Meanwhile, 16 percent of Russians believe that innovations cannot change life greatly. The figures have remained virtually unchanged from a year earlier, VCIOM reported.

RBC, 28.03.2008, Moscow 09:56:09.The Association of Regional Banks of Russia (the Russia Association) has drafted a strategy for increasing the accessibility of financial services, which stresses the need to provide Russian Post with a "broad range of powers" on the lending and savings market, the RBC Daily newspaper wrote today. It has been proposed that POS terminals should be set up at all post offices, and that Russian Post should start issuing its own plastic cards and electronic money in the mid term.

RBC, 28.03.2008, Moscow 09:28:37.Renova Media yesterday announced its Comcor TV broadband Internet subscriber numbers in a report, which for the first time consolidated the figures of companies the media group acquired in 2006-2007. According to Renova's estimates, this has placed the company second on the Moscow market, as Corbina Telecom has been moved down to third place, the RBC Daily newspaper wrote today. Analysts agree with Akado's estimates, while competitors believe the figures are far-fetched. According to Comcor TV General Director Sergei Alimbekov, Comcor's subscriber base in Moscow reached 369,000 users in 2007. According to the company's data, it took second place with a 19.4-percent market share against 34.4 percent mustered by Comstar Direct (the Stream brand), with Corbina Telecom in third place with 15.5 percent (according to J'son & Partners' estimates).

RBC, 27.03.2008, St. Petersburg 19:26:52.The ent profit of Polymetal under RAS shrank by a factor of 101.5 to RUB 537,000 (approx. USD 22,697) in 2007 compared to a year earlier, the Russian precious metals producer reported today. Net loss stood at RUB 40.571m (approx. USD 1.71m) in the fourth quarter of 2007. As reported earlier, the company's net prodit stood at RUB 41.108m (approx. USD 1.74m) during the first nine months of 2007.

RBC, 27.03.2008, Moscow 19:03:22.The Russian stock market closed with most blue chips rising more than one percent. The MICEX index increased 1.56 percent to 1,618.61 points, while the RTS index went up 1.75 percent to 2,030.13 points. Among the RTS's top gainers were Rosneft (up 4.76 percent), LUKoil (up 3.54 percent), and Surgutneftegas (up 3.56 percent). On MICEX, Rosneft surged 4 percent, LUKoil climbed 3.57 percent, and Gazprom Neft added 2.09 percent.

RBC, 27.03.2008, Moscow 15:47:17.Russia is currently reviewing US proposals for the strengthening of transparency and trust regarding the anti-missile defense system, Foreign Minister Sergei Lavrov told journalists today. He explained that, although the US had not abandoned its unilateral plan to deploy a missile shield in Eastern Europe, it had offered a number of steps to ensure that the shield does not harm Russia. However, Russia's stand was that the US needed to scrap its anti-missile plan and switch to an alternative joint project involving Russia and other countries. This could help lift Russia's concerns that the shield would be used against it, Lavrov said. Meanwhile, consultations between Russia and the US are still underway in Washington D.C.

RBC, 27.03.2008, Moscow 13:41:22.Russia's gold and foreign exchange reserves stood at $502.2bn as of March 21, 2008, up $100m, or 0.2 percent from the previous showing. Coupled with a $21.1bn rise over the previous five-week period, the reserves have now increased by $21.2bn, or 4.4 percent, over the past 30 business days. The rise, which has been the smallest in several years, has been fueled by the euro's considerable appreciation against the dollar on international exchanges, as well as significantly larger amounts of foreign currencies bought up by the Central Bank on the domestic market. As a result, Russia has been able to somewhat narrow the gap separating it from the world leaders in international reserves, China and Japan. China's reserves currently exceed $1.65 trillion, having increased by more than $57.3bn in February alone and $61.6bn in January, due to the country's huge trade surplus. Japan currently boasts over $1 trillion in reserves.

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Russian News: March 25th, 2008!

RBC, 25.03.2008, Moscow 17:46:23.Severstal reckons to achieve a synergetic effect worth $50m generated by the acquisition of Sparrows Point, the Russian steel maker said. The company's management expects that the synergy between the companies will result from lower expenses and higher operating efficiency.

RBC, 25.03.2008, Moscow 17:21:03.LUKoil and Iraq have agreed to form a working group for the implementation of the Western Kurna-2 project, the Russian oil company's press office reported today, referring to the talks held by its President Vagit Alekperov and Iraq's authorities. Furthermore, LUKoil Overseas, the operator of the oil producer's foreign projects, is to take part in tenders for new projects that will be announced by Iraq's government following the introduction of a new oil law.

RBC, 25.03.2008, Moscow 16:50:59.The Federal Tax Service has transferred RUB 555.5bn (approx. USD 23.3bn) to Russia's federal budget in January-February 2008, or 31.7 percent more than in the same period a year earlier, the tax authority said in a statement. The tax on the production of mineral resources and the value-added tax accounted for large portions (45 and 24 percent respectively) of the total revenue reported by the Federal Tax Service.

RBC, 25.03.2008, Moscow 16:33:37.Consultations between Russia and the US on Russia's accession to the WTO will be held on March 26-27 in Washington D.C., the Russian Foreign Ministry reported to RBC today. The talks are a logical continuation of the recent negotiations held in the "two-plus-two" format in Moscow, the ministry reported. Russia will be represented by Deputy Foreign Minister Sergei Kislyak.

RBC, 25.03.2008, Moscow 15:45:12.Russia's revenue from oil and gas sales is expected to decline to 6 percent of GDP in 2011 if global oil prices stand at $75 per barrel, the country's Deputy PM and Finance Minister Alexei Kudrin said during the Economy Ministry's board meeting today. He noted, however, that the government did not intend to cut budget spending despite the anticipated slide in revenues. Kudrin reiterated that the transfer of oil and gas revenues to the federal budget was expected to decrease from 5.5 percent of GDP this year to 3.7 percent of GDP in 2011.

RBC, 25.03.2008, Moscow 15:38:25.A decision on the increase of gas production tax has been postponed until 2010, Russia's Deputy Prime Minister and Finance Minister Alexei Kudrin told journalists today. He pointed out that the government had reviewed all presented materials on the matter and postponed the increase, due to Gazprom's substantial investment program.

RBC, 25.03.2008, Moscow 14:56:27.During the placing of RBC Information Systems commercial papers, demand exceeded supply, resulting in oversubscription, Alexander Kuznetsov, Director for debt capital market operations at Alfa-Bank, has reported. Alfa-Bank is acting as the underwriter for the loan. The results of the placing will be announced this evening.

RBC, 25.03.2008, Moscow 14:13:07.Stabilization Fund resources placed by the Finance Ministry in foreign assets continue to bring profit, even amid the ongoing global crisis, Deputy PM and Finance Minister Alexei Kudrin said during an Economy Ministry board meeting today. He reiterated that the reserve funds had been placed conservatively, adding that he was pleased not to have charged to invest more bold