Actuality December, 13, 2007

The proper bill draft is introduced to the deputies of

the State Duma. All regula tory enactments, that allow the act

to begin work quickly, are

already prepared.

The bill draft has high chances to receive an approval of the Russian members of the parliament. Prepared by the FFMS it already passed reconciliation with the Ministry of Finance, Ministry of Economic Development and Trade (MEDT) and the Central Bank.

Probably, the act will start acting in the middle of the next 2008 year.

The entry of foreign investors can increase the volume of the Russian market by 10% in the nearest two years, experts are sure. “And first companies that will appear here are related to the local market”, says Alexander Krapivko, the senior portfolio manager of Renaissance Investment Management. “They are Danon and Strabag Construction Company etc. Those, who work on the Russian market will be presented more, those, who are not, won’t enter at all! It would be convenient for the Russian institutional investors to buy these stocks, instead of doing something to buy these securities on the NYSE, for example”.

Probably, the FFMS initiative reckons upon issuers from the CIS countries, and also eastern Europe.

One unlikely needs to wait that the largest world companies will seat in Russia,

as Coca-Cola, for example.

The head of market analysis department of OTKRITIE Financial Corporation, Valery Piven says: “There are a lot of risks which will endanger capitalization

of these companies regardless of their activity. The Russian market is not liquid enough. There is no point for the Russian investors to buy stocks of these companies. For the companies the entry to the foreign markets is carried out for the sake of money raisings and rise

of capitalization. Nevertheless our market is rather the risk for the foreign large companies; it is more risk than profit”.

According to the bill draft norms the stocks of foreign companies, that have already passed listing on the foreign stock exchanges, will be admitted to Russia on the simplified scheme. If securities are not included in the quote list, they will require the special resolution of regulator for the entry to the Russian market.

Besides the issuers of securities should be registered in a country, entering in FATF (Financial Action Task Force on Money Laundering).

It is not improbable that removal of a ban on the entry of foreign securities is connected with the state desire to place in them means of National Wealth Fund, which is allocated from stabilization fund from the next year.

It is easier to control foreign assets placed in Russia.