The third issue

** President of the Russian Federation and his administration **

President of the Russian Federation V. Putin

... held a meeting in Sochi with the Deputy Prime Minister - Minister of Defense of the Russian Federation S. Ivanov , who informed the head of state about military exercises conducted in various regions of Russia.

... I signed a decree with which he approved the Regulation and the composition of the commission on improving the socio-economic situation in the Southern Federal District. The head of the commission was appointed envoy of the village of Kozak . The deputy chairman of the commission was the head of the Mayrt Group and Minister of Finance A. Kudrin .

** Government of the Russian Federation **

Government of the Russian Federation

... by order of September 16 approved the Charter of the Federal State Institution " Analytical Center under the Government of the Russian Federation ".

... accepted the proposal of the Ministry of Transport, agreed with the Ministry of Foreign Affairs of the Russian Federation, on negotiations on the conclusion of an agreement between the Ministry of Transport of the Russian Federation and the Ministry of Transport of the Republic of Kazakhstan on the organization of a direct international railway message through the ports of the Astrakhan water transport unit, Makhachkala (Russia) and Aktau (Kazakhstan).

... approved the rules for the provision of state guarantees to support the export of industrial products in 2006

The Government of the Russian Federation at the meeting approved

... amendments to the legislative acts of the Russian Federation, clarifying the terms and procedure for acquiring rights to land plots located in state and municipal property.

... a decrease in the threshold of the purchased shares, the excess of which requires notification proposed by the Central Bank. These amendments are proposed to establish a 1%threshold for the acquisition of shares (shares) by a credit institution, the excess of which requires notification of the Central Bank of the Russian Federation, and a 10%acquisition threshold, the excess of which requires the preliminary consent of the Bank of Russia.

... a bill reducing the marginal rates of redemption prices and rental payments for land under privatized enterprises. The redemption prices are set for Moscow and St. Petersburg at a level of not more than 20% of the cadastral value of land plots and 2.5% for other territories.

* * * Speaking at a government meeting,

- The Chairman of the Central Bank of the Russian Federation S. Ingonatiev noted that the issue of restricting the share of non-residents in the total capital of the Russian banking system in the next 3-5 years is irrelevant. "The current share [as of July 1, 12.92% in the total authorized capital of credit organizations] is small according to any criteria. It is increasing, but in the next three to five years the issue of limiting this share is not necessary," he said. According to him, such a thing as the optimal share of non -residents in the capital of the banking system does not exist at all. In different countries and in different situations, such a share can be different.

- The Minister of Finance of the Russian Federation A. Kudrin noted that during the negotiations on Russia's entry into the WTO, the negotiating position of the Russian Federation is to reserve the right to establish a quota for non -residents in the Russian banking system. The minister emphasized that so far there are no grounds for the introduction of such a quota, "but if such participation can be dangerous for the Russian banking system, the quota can be established." A. Kudrin pointed out that in the negotiations on the entry of the Russian Federation to the secondary, we are talking about a quota of approximately 50%.

** Regional news **

The head of the department of the State Duma department A. Tselik was elected a member of the Federation Council from the Legislative Assembly of Omsk, the press service of the region’s parliament said. A. Tselik was elected senator instead of M. Lapshin , who died in June, ex-head of the Altai Republic.

The Irkutsk region and the European investment and technological research center (European Technology and Investment Research Center, Etirc) plan to create a venture fund, said the governor of the Irkutsk region A. Tishanin. He noted that the creation of the venture fund is provided by the already signed by the memorandum of cooperation.

** Economic news **

During the Baikal Economic Forum in Irkutsk

- Deputy Head of the Ministry of Economic Development of the Russian Federation K. Androsov said that the ministry has developed 13 standard concession agreements, including an agreement on the construction and operation of pipelines. According to him, the government has already approved two typical concession agreements regarding roads and housing and communal services, the remaining 11 MARTs have been included in the government and are currently being considered in the office of the Cabinet of Ministers. K. Androsov noted that these agreements concern, among other things, the possibility of building pipelines on the terms of concession, railways, heating mains, water utilities, cultural and healthcare facilities.

- Deputy Head of the Federal Agency for Subsoil Use (Rosnedra) V. Bavlov noted that Rosnedra expects to implement in 2006 a license for the right to use subsoil worth about 40 billion rubles. He stated that the task of his department and private business is to promote the speedy construction and load of the Eastern Siberia - Pacific Ocean and the full -fledged work of the Baikal -Amur highway as axes of transport infrastructure. According to the federal official, the construction of a mining and metallurgical plant is necessary in Eastern Siberia, since in the near future a significant increase in the extraction of ores of ferrous and non-ferrous metals is predicted. Thus, the forecast resources of the indigenous gold of Eastern Siberia and the Far East are about 3.6 thousand tons, the scatter gold - 412 tons, diamonds - 20 million carats.

** Companies news **

In 2007, OJSC Territorial Generating Company No. 1 (TGK-1 ) plans to conduct an additional issue of shares for $ 1-2 billion. At the same time, he noted that the final amount of additional ministry is currently not determined. According to V. Rodin, as a result of the additional mining, the TGK-1 shares belonging to the UES RAO will be 25%+1 promotion. The CEO of TGK -1 also emphasized that the company does not plan to significantly reduce the forecast of net profit in 2006 - it will remain at the level of 500 million rubles.

Russian aluminum OJSC increased the investment program for 2004-2013. up to more than $ 16 billion. According to the deputy leader of the company for the corporate development strategy of P. Ulyanov, this investment program provides for investing $ 4 billion in the company's booxite and alumina assets, $ 6.5 billion in aluminum, $ 5.2 billion in the environmental program will amount to about $ 500 million. The implementation of the program "provides for various forms of financing, including reinvestment of profits, as well as the possibility of eurobligations."

* * * " Eurosibenergo " (the subsidiary of the " basic element ", which manages the energy actes of the holding) plans to build a hydroelectric power station worth about $ 800 million in the Krasnoyarsk Territory, said the general director of Euro-Sybenergo-Engineering, V. Kolmogorov . According to him, the company is currently developing justification for the project investment, which is planned to be completed by the fall of 2007 and in 2010-2011. It is supposed to start directly to construction. The power of the hydroelectric power station will be 660 MW. It is assumed that the hydroelectric power station will be built on the hangar, below the Boguchanskaya hydroelectric power station. Construction will begin immediately after entering the latter.

The net profit of the British Peter Hambro Mining PLC , which develops gold deposits in Russia, increased in the first half of 2006 by 88.63% to $ 11.118 million. Compared to the first half of 2005, in the first half of 2006, the company increased the production of gold by 6% to 108.363 thousand instances compared with the 1st half of 2005 2005 2005 At the same time, Peter Hambro expects to produce in 2006 more than 250 thousand triple ounces that it predicted earlier.

The net loss of Highland Gold Mining Limited (HGM), which develops gold deposits in Russia, decreased in the first half of 2006 by 36 times to $ 0.2 million from $ 7.2 million. In the first half of 2005, the revenue in the first half of 2006 increased by 90% to $ 53.8 million, compared to compared From the first half of 2005, the company received an operating profit of $ 4.2 million against $ 1.7 million operating losses a year earlier.

The volume of gold sales increased in the first half of 2006 to 85.567 thousand ounces from 63.333 thousand ounces in the first half of 2005. The production of gold increased by 43% to 91.205 thousand ounces compared to the first half of 2005.

* * * HGM plans in 2006 to the production of gold at the level of 168-178 thousand ounces, in 2007 - about 200 thousand ounces, said the management director of the company Khorn .

British TRANS-SIBERIAN GOLD (TSG) sells its shares in the GRK Amikan LLC and Angarskaya Production Company LLC in the Krasnoyarsk Territory to its shareholder Anglogold ashanti for $ 40 million and buys the company " Siberian Mining and Metallogic Alliance " (Sigma) from its other shareholder-UFG- UFG Private Equity Fund , TSG said in a message. The TSG Board of Directors appointed the new general director of O. Bagirov , who is also the general director of Sigma, who owns a number of golden assets in Kamchatka. The funds from the deal with Anglogold Asshanti will be aimed at financing the project of the Asachinskoye field development project in Kamchatka, which the company expects to put into operation by the end of 2008

The company " Russian Railways " intends to purchase stakes in terminals in the seaports of Novorossiysk and Ust-Luga, said Russian Railways President V. Yakunin . According to him, the participation of railway workers in the assets of complexes will ensure that consignors who use the services of railway workers and sailors during transportation, through a through tariff rate.

Read about the further development of events in the next issue of the monitor at 19 o’clock.