Federal State Statistics Service (Rosstat) data about the industry state in January-March confirms the recovery of industrial production growth in Russia. It totaled 6,2% in annual terms in 1Q of 2008. The Russian industry grows due to the processing sectors, while oil production has been reducing in Russia. Some economists are convinced that stagnation in the oil industry is predetermined by tax and political pressure on oilmen, and the industry should be already supported by tax deductions and stimuli to deposits exploration.

Previous year the transactions volume of mergers and acquisitions (M&A) in the metallurgy has upped by 67% – to $144,7 billion, though their total amount has upped by 6,7% only. They have moved form the ferrous metallurgy to the non-ferrous one together with transactions consolidation. Industry analysts consider that 2007 was the peak year and according to its results one should not expect the serious growth of M&A volume in the metallurgy. Thus, the core intrigue takes place in Russia, around the possible amalgamation of OJSC MMC Norilsk Nickel with Metalloinvest or United Company Rusal.

Russia’s industrial production for January-February, 2008 grew by 6% as compared to the analogical last year’s period, as Rosstat reports. In January-February, 2007 industrial production growth rate totaled 7% as compared to the analogical period of 2006. In February, 2008 the Russian Federation industrial production increased by 7,5% as compared to February, 2007 and by 3% – as compared to January, 2008

Russia forces construction of South Stream gas pipeline. The agreement between Russia and Hungary about the cooperation for creation of gas pipeline for transit of natural gas through Hungarian territory was signed in Moscow. The document, foreseeing joining of Hungary to the project of South Stream gas transmission system, was signed by the head of the Ministry of Industry and Energy Viktor Khristenko and the minister for finance of Hungary Janos Verezs in presence of the Russian president Vladimir Putin, head of Hungarian government Ferenc Gyurcsany and first vice-prime minister Dmitry Medvedev

State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”, Russian Union of Lumbermen and Lumber Exporters and German company MAN Ferrostaal AG announced about creation of joint investment engineering company Rusles-Engineering for construction timber industry enterprises on a turn-key basis. The newly made company has already one project in the Komi Republic. According to the experts, the similar structure will be in demand, as logging segment requires radical updating of capacities.

Fast industrial growth in 2007 is caused not only by demand growth, but the competitiveness of enterprises working in Russia has increased. For a year industrial production growth, according to Center for Macroeconomic Analysis and Short-term Forecasting (CMASTF), made 6,4 % (according to Goskomstat (Federal State Statistics Service) – 6,3 % for 11 months, 3,9 % for 2006). Manufacturing activities became the motive power because of the improved indicators practically in all branches, the economist of CMASTF Vladimir Salnikov explained at the report presentation in United Nations Information centre.

Air show in France showed force and weakness of RF aviation. Civil aviation fully dominated in Parisian sky. The creators of perspective passenger airplanes are not overmodest in names today. RF liner is named “super airplane -100″.