Company name and symbol at the Russian RTSE stock market.

Russian RTSE stock market www.rts.ru

Brief description of russian companies.

RAO UES (company website)

RAO UES

RAO “UES of Russia” is a constituent part of electric power industry of Russia. The structure of RAO “UES of Russia” includes:
Company – main (parent) company RAO “UES of Russia”, including branches and representative offices.
Holding – Company and its subsidiaries and affiliates of AO-Energos and AO-power plants, including AO “Novosibirskenergo”.
Group – Holding and all other subsidiaries and affiliates, including research and development, design organizations, building, service and non-core organizations.

As of 01.10.2007 at the retail electric power market work 58 companies of OAO RAO “UES of Russia” Holding, engaged in power sale, including 50 power sales companies (PSC) and 8 unreformed of AO-Energos.

Sum productive supply of electricity to the indivdual consumers of the Holding on the whole totaled 383,7 billions kWh (excluding realized electric power to the enterprises of electric grid complex for technological aims).

According to the decision about the going out of OAO RAO “UES of Russia” of power sales business, in May, 2007 took place first open auctions on sale of stocks of 7 PSCs that belonged to OAO RAO “UES of Russia” (OAO “Kuban PSC”, OAO “Belgorod PSC”, OAO “Vologda PSC”, OAO “Kuzbassenergosbut” (Kuzbass PSC), OAO “Nizhny Novgorod PSC”, OAO “Orenburgenergosbut” (Orenburg PSC), OAO “Sverdlovskenegrosbut”(Sverdlovsk PSC)).

On September, 19-20, 2007 took place second open auctions on sale of stocks of 4 PSCs that belonged to OAO RAO “UES of Russia” (OAO “Voronezh PSC”, OAO “Tver PSC”, OAO “Karelia PSC”, OAO “Kurgan PSC”).

Important event for power sales business in Q3 of 2007 became tender in two constituents of Russain Federation on a right to realization of sales activity as a guaranteeing supplier of electric power.

Gazprom (company website)

Gazprom-Logo.

OAO “Gazprom” is the world’s largest gas company. Basic lines of activity are focused on geological exploration, production, transmission, storage, processing and marketing of gas and other hydrocarbons. The state owns 50,002% of controlling stock interest of Gazprom.
Gazprom possesses the world’s largest natural gas reserves. Its share in the global reserves of gas makes up 17%, in Russian – 60%. Gazprom reserves of gas are estimated at 29,85 tcm and currently priced at $182,5 billions. In 2006 an increase of explored gas resources’ volume substantially exceeded the extraction rate and made up 723,4 bcm.

Gazprom’s share in the global and Russian gas production is nearly 20% and 85% respectively. In 2006 enterprises of Gazprom Group extracted 556 bcm of gas, that 1 bcm higher on the production level in 2005.

Gazprom exports gas to 32 countries within and beyond the FSU, continues reinforcing its positions on conventional foreign markets. In 2006 sales turnover of gas to the European countries made up 161,5 bcm and to the countries of the CIS and Baltic States – 101 bcm.

Gazprom realizes step-by-step strategy of its presence in LNG market (liquefied natural gas). It allows to extend the Company’s business geography. In 2005 Gazprom supplied its first LNG cargo to the USA, in 2006 – to Great Britain, Japan and South Korea. Gazprom’s joining the “Sakhalin 2” project gives a powerful impetus for the completion of large-scale project regarding supplies of energy carries to Asia-Pacific and North America.

Gazprom is confident about its future. In 2006 middle capitalization of Gazprom increased by 163% and reached $ 239,33 billions. According to level of market capitalization Gazprom entered the list of the five largest energy companies in the world.

Rostelecom (company official website)

rostelecom

Rostelecom, Russia’s national international (ILD) and domestic long-distance (DLD) fixed-line operator, is the country’s largest telecommunication company. Rostelecom possesses and manages a 150,000 km own modern nationwide telecommunications network, enabling the provision of a growing range of telecommunications services across the entire Russian Federation.
From the beginning of 2006 OAO “Rostelecom” provides fixed-line ILD and DLD services to corporate and residential customers throughout Russia, using the infrastructure of regional operators. Besides traditional long-distance voice services, the Company offers its clients the wide rage of services on the basis of own intelligent platform, services of multimedia network.

Rostelecom is the largest in Russia operator for operators, providing with the full range of services of interconnecting all local public operators’ networks into a single national network for long-distance services. The Company is also the major provider of telecommunications services for state organizations and governmental authorities, television and radio broadcasters and Internet providers.

Rostelecom has direct international connections with more than 100 operators in 72 countries, participates in 30 international cable systems and cooperates with 400 international operators and companies. The Company renders traffic transit services to international operators and provides international leased line services for any level of capacity. Rostelecom, as a leading telecommunications operator of Russian Federation, is the permanent member of the International Telecommunications Union (ITU), is the member of Telecommunication Operators Board of the Regional Commonwealth in the field of Communications (RCC) and participates in a range of other international organizations.

The major shareholder of OAO “Rostelecom” is OAO “Svyazinvest” holding, with ownership of 51% of the ordinary (voting) stocks. Rostelecom’s public free float consists of the remaining 49% of the ordinary and 100% of the company’s preferred stocks. In 1998 was started the ADR (American Depositary Receipts) program of Level 2 with listing on the New York Stock Exchange (ROS ticker). The Company’s securities are traded on the largest Russian and western stock exchanges, including RTS, MICEX, New York, London and Frankfurt stock exchanges.

MMC Norilsk Nickel (company website)

Norilsk Nikel

Open Joint Stock Company (OJSC) MMC (Mining and Metallurgical Company) Norilsk Nickel and its subsidiaries ( “the Group” or “the Company”) is the world’s largest producer of palladium and nickel, one of the leading platinum producers and also one of the largest copper producers. Besides, the Company also produces a large number of by-products, including cobalt, rhodium, silver, gold, tellurium, selenium, iridium, and ruthenium.

Norilsk Nickel Group is engaged in prospecting, exploration, mining, beneficiation and metallurgical processing of minerals, with further production, marketing and sale of non-ferrous and precious metals.

In 2003 the Group has bought 55,4% stocks of Stillwater Mining Company, the sole producer of platinum-group metals on the territory of the USA.

Sale
At the end of 2004 the Company completed reorganization of foreign sale network. Distributor of the Group metals at the European market is Norilsk Nickel Europe, at the American market – Norilsk Nickel USA, at the Asian market – Norilsk Nickel Asia. Sales at the internal market are carried out by the Group sale subdivision.

On the share of MMC Norilsk Nickel fall more than 18% of world nickel production, about 2,5% of copper, almost 50% of palladium production and about 13% of platinum. At the domestic market on the share of MMC Norilsk Nickel fall about 96% of nickel, 55% of copper, more than 90% of platinum-group metals, 95% of cobalt.

Savings Bank Sberbank of Russia (bank website )

sberbank

The joint stock commercial Savings Bank of the Russian Federation (Sberbank of Russia) was established in form of open joint stock company (OJSC) in accordance with Section of RSFSR. Central Bank of Russia is the founder and principal shareholder of Sberbank (over 60% of voting stocks). Its shareholders are more than 200.000 thousand of legal bodies and individual persons. Sberbank of Russia was registered on June, 20, 1991 in the

Central Bank of the Russian Federation.

Capital is RUR 659,3 billions ($26,372 billions)
Income is RUR 139,7 billions ($5,588 billions)
Net income is RUR 112,6 billions ($4,504 billions)
Sberbank’s share in the total deposits’ residue of individual persons in all commercial banks (as at September,1, 2007): in rubles – 54,8 %; in foreign currencies – 38,5 %.
Active and mutually beneficial cooperation with the wide range of foreign partners on different directions show stable positions of Sberbank in the world banking system. Such international recognotion allows not only fully meet external economic requirements of the Bank clients, but also serve the country interests on the whole.

For assistance in foreign economic activity of clients and quality improvement of international settlements provision Sberbank of Russia maintains correspondent relations with more than 200 leading foreign banks. Sberbank signed an agreement with more than 1000 banks around the world about direct settlements on SWIFT system. The international correspondent network of Sberbank of Russia covers all continents, thus providing clients with the possibility to make settlements in any spot of the world.
Establishment of limits by foreign banks for conducting of different kind of operations without secutiry (unsecured basis) is the important factor of international authority of Sberbank.

From 1994 Sberbank of Russia closely cooperates with the European Bank for Reconstruction and Development (EBRR). Cooperation of the Bank with EBRR develops on two basic directions:
• Program of small business development in Russia
• Program of assistance to trade development

Sberbank of Russia is the member of the International Bank Security Association (IBSA) from 1994. The association is engaged in prevention and investigation of crimes against credit and financial establishments, including fraud and forgery. Due to the membership in IBSA Sberbank of Russia succeeded in returning of considerable means to legal holders, stolen from the savers’accounts by trick. In 2003 in Moscow under the Bank’s guidance took place the General meeting of IBSA members.

On May, 5, 2003 was signed the Credit agreement between Sberbank of Russia, John Deere Credit and Eximbank USA to the amount of $10 millions for import financing of americanmade equipment to Russia.

Lukoil (company website)

Lukoil

Lukoil is one of the world’s leading vertically integrated oil and gas companies. Main activities of the Company are exploration and production of oil and gas, production of petroleum products and petrochemicals, and marketing of these outputs. Most of the Company’s exploration and production activity is carried out on the territory of the Russian Federation (RF), and its main resource base is in Western Siberia. Lukoil owns modern refineries, gas processing and petrochemical plants located in Russia, Eastern Europe and near-abroad countries. Most of the Company’s production is sold on the international market. Lukoil petroleum products are sold in Russia, Eastern and Western Europe, near-abroad countries and the USA.

Lukoil is the second largest private oil Company worldwide by proven hydrocarbon reserves. The Company’s share is around 1.3% of global oil reserves and 2.3% of global oil production. Lukoil is the key player in the Russian energy sector, with the share of almost 19% of total Russian oil production and 18% of total Russian oil refining.

Lukoil proven reserves at the beginning of 2007 were 15,927 mln barrels of crude oil and 26,597 bcf of natural gas, totaling 20,360 mln boe.

Lukoil has an outstanding portfolio of production assets in the sector of exploration and production. The main production region for Lukoil Group is Western Siberia. Lukoil is carrying out international exploration and production projects in Kazakhstan, Egypt, Azerbaijan, Uzbekistan, Saudi Arabia, Iran, Colombia, Venezuela, Cote d’Ivoire and Iraq.

With putting into operation the Nakhodkinskoye gas field in 2005 the Company started its gas program which targets at a rapid growth of gas production. The key regions for development of Lukoil gas production are the Bolshekhetskaya Depression, the Northern Caspian and Tsentralno-Astrakhanskoye field in Russia as well as the Kandym – Khauzak – Shady project in Uzbekistan and the Shakh Deniz project in Azerbaijan.

Lukoil owns significant oil refining capacity both in Russia and abroad. In Russia the company owns four large refineries at Perm, Volgograd, Ukhta and Nizhny Novgorod and two small. Total capacity of Lukoil facilities in Russia is 44.1 mln tons of oil per year. Lukoil also has foreign refineries in Ukraine, Bulgaria, and Romania, with total capacity of 14.0 mln tons per year. In 2006 Lukoil refined 48.9 mln tons of oil at its own refineries, including 39.5 mln tons at its Russian refineries.

At the beginning of 2007 the Company’s marketing network encompassed 19 countries, including Russia, near-abroad and European countries (Azerbaijan, Belarus, Georgia, Moldova, Ukraine, Bulgaria, Hungary, Finland, Estonia, Latvia, Lithuania, Poland, Serbia, Romania, Macedonia, Cyprus and Turkey), and the United States. The network consists of 200 tank farm facilities and 5,793 filling stations (including franchises).