Actuality February 14, 2008

   After Bank of Moscow that first began to invest in the Russian

forest industry

other Russian banks ran

to this industry. It was known that VTB acquired 10,07% of the Finnish forest business corporation Ruukki Group Oyj at Procomex S.A. company for €76,9 mln, realiz ing large

investment project in the Kostroma region in Russia.

   As it is marked in the jo

int report of companies, the basis for this agreement became the general interest of parties to the development of the Russian forest industry.

Now parties consider each other as long-term investors, moreover VTB is ready to support the investment strategy of Ruukki Group Oyj in Russia.

Acquisition of stocks will be completed on the stock exchange of Helsinki.

The total cost of the acquired interest totaled €76,9 mln. Deputy president – chairman of VTB board Vasiliy Titov refused to comment before completion of transaction.

In Ruukki Group Oyj also did not comment its details.

   We will remind that since summer, 2007 Finnish Ruukki Group Oyj realizes the project on construction of forest industrial complex in the Kostroma region that includes a lumber mill and factory for cellulose production. The investments volume totals about €1,1 bln. Thus, the Finnish company received about €250 mln due to the offering of 130 million company stocks on the Helsinki stock exchange.

   Anna Krylova, the analyst of AtlantaPioGlobal Investment Group, marked that first of all VTB is able to help in attraction of projects financing, in addition, the Russian bank is in a greater degree informed about the

Russian legislative and administrative specific character than the foreign player. She added also that it would be far difficult to VTB

to conduct the forest business alone than with the specialized foreign partner.

   For Ruukki, that undertook such large project, this transaction means much more, than for VTB, considers Heinz Zinner, the chairman of the board of directors of the JSC "Arkhangelsk Pulp and Paper Mill". According to him, having the large state bank as a stockholder, it will be much easier the Finnish company to socialize w ith authorities.