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| Alfa Bank Alfa Bank has more than 80 branches across Russia and the CIS and fully licensed banking subsidiaries in Ukraine, Kazakhstan and the Netherlands. The Bank’s fast growing brokerage business has a FSA authorised arm in London — Alfa Securities Limited — and a NASD registered Broker Dealer in New York — Alfa Capital Markets Inc. Inside Russia, Alfa Bank is a leader in mergers and acquisitions and debt capital markets and is one of the biggest issuers of banking cards. The Bank also runs the country’s largest mutual fund. The Bank is a core holding of Alfa Group Consortium, a privately owned financial industrial group with interests ranging from oil and telecommunications to supermarkets and commodities trading. As of 31 December 2001 Alfa Bank had assets of $2.7 billion and shareholders’ equity of $278 million. Net profits in 2001 were $85 million compared with $77 million in 2000. Alfa Bank has a mix of Western and Russian management and aims to provide expertise in Russian markets with the highest standards of international business practice. Alfa Bank honoured its financial commitments to western institutions before, during and following Russia’s 1998 devaluation and in 2000 became the only Russian issuer to repay its Eurobond in full and on time. Alfa Bank is rated B- by Fitch IBCA, B1 by Moody’s and B- by Standard & Poor’s. These are the highest ratings for a private financial institution in Russia. The Bank has won numerous press awards, including Euromoney Best Bank in Russia 2002, Global Finance’s Best Russian Bank in 2002 and Best Trade Finance Russian Bank in 2002, Bank of the Year 2000 in The Banker. |
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Gazprom Gazprom is the world’s largest natural gas company in terms of reserves, transportation and production volumes. As of December 31 2001, wholly-owned Gazprom subsidiaries held production licences for 26.0 tcm of A, B, and C1 natural gas reserves (classified in accordance with Russian standards; See Appendix B – Part 1 – “Overview of the Russian Gas Industry and its Regulation”) and subsidiaries, in which Gazprom holds less than 100% of the Shares, held production licences for another 5.0 tcm of A, B, and C1 natural gas reserves, of which 2.1 tcm is attributable to Gazprom in proportion to its actual shareholding. The Group’s total A, B, and C1 natural gas reserves of 28.1 tcm are equivalent to approximately 60% of Russia’s estimated total for such reserves. In addition, as of December 31 2001, Gazprom through its wholly owned subsidiaries or through subsidiaries, in which Gazprom holds less than 100% of the Shares, held production licenses for approximately 1,293.8 million tonnes of A, B, and C1 gas condensate (which represents approximately two-thirds of such reserves in Russia) and 584.6 million tonnes of A, B, and C1 oil reserves (in proportion to Gazprom’s actual shareholding.) Gazprom’s subsidiaries produced a total of 512.0 bcm of natural gas in 2001 (compared to 523.2 bcm in 2000), and this amounted to approximately 88.1% of Russia’s natural gas production in that year. As of December 31 of 2001, the Group’s total number of wells reached 9,302 natural gas wells and 569 oil wells. Gazprom owns and operates the UGSS, a single centrally controlled system for natural gas production, processing, transportation, storage and deliveries. The UGSS includes the world’s largest high-pressure trunk pipeline system. The network is powered by 253 compressor stations with a total capacity of approximately 42,600 megawatts. The pipeline network (of approximately 150,000 km) is the most critical link in the system delivering natural gas to consumers within Russia and abroad. Seasonal peak loads are levelled off using 22 underground natural gas storage facilities with an active storage capacity of approximately 57.9 bcm. Gazprom’s dispatch management centre, located in Moscow, controls and manages the transportation of gas in Russia. Gazprom is the largest supplier of natural gas to Europe. Its market share (according to CEDIGAZ – “Natural Gas in the World – 2001”. Survey, July 2001) in the European natural gas market was 25.9% in 2000. Gazprom also supplies most of the natural gas consumed in Russia and certain countries in the FSU. In 2001, Gazprom exported 127.0 bcm of natural gas to Europe. A further 39.60 bcm of natural gas was exported to the FSU. Deliveries of natural gas to Russian consumers in 2001 amounted to 278.9 bcm. Revenue form natural gas exports to Europe for the year ended December 31 of 2000 amounted to U.S.$15.5 billion (including excise tax but net of VAT) (compared to U.S.$9.9 billion for the year ended December 31 of 1999). Sales of natural gas in the FSU market for the year ended December 31 of 2000 account for the revenue of U.S.$2.3 billion (including excise tax but net of VAT) as compared to U.S.$2.5 for the year ended December 31 of 1999. Revenue from natural gas sales in Russia for the year ended December 31 of 2000 totalled U.S.$3.3 billion (including excise tax but net of VAT) (compared to U.S.$3.6 billion for the year ended December 31 of 1999). |
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| MICEX Moscow Interbank Currency Exchange (MICEX) has served as a basis for the nation-wide system of trading in currency, equity, bond and derivative markets of Russia. For ten years of work MICEX became the leading exchange in Russia, CIS countries and Eastern Europe in trading volume (in 2001 – USD107 bln.). MICEX has one of the most advanced electronic trading and depository system in the world. About 1500 banks and investment companies located in Moscow and other major financial centers are linked with MICEX through remote working terminals. On MICEX trades are conducted in equities of more than 150 Russian issuers including such blue chips as RAO "UES", "LUKoil", "Surgutneftegas", "Rostelecom", "Mosenergo", "YUKOS" and others. At the moment, MICEX's share in the combined turnover of the leading trading floors on the Russian equity market is over 80%. The MICEX as a nation-wide system of trade in government securities provides the whole range of operations with government GKO, OFZ, OBR and eurobonds. |
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| Moscow
City Government The Committee of Municipal Debt, Securities and Capital Market Development of the Government of the City of Moscow was established on July 22, 1996 in accordance with the Resolution of the Mayor of Moscow to arrange and execute borrowing on behalf of the City through placement of securities. The Committee is the only borrower on behalf of the Government of the City of Moscow in relation to all kinds of debt guaranteed by the City budget. The main objectives of the Committee are as follows:
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RAO UES of Russia The technical basis of UES of Russia is comprised of:
The organisational basis of UES of Russia is comprised of:
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| RTC-LEASING In 2001, the shareholders agreed on a new company strategy in developing the business, improving the market value and the capitalisation. The programme includes a wider clients’ base, working on Svyazinvest investment projects, leasing activity in the most attractive sectors, improvement of the services and the involvement in the Russian and international capital markets. The investing policy features well-balanced risks management, almost complete income reinvestments in the main business (leasing). The main objective is to provide the dynamic development of the company and its clients. 2001 financial results: income 1.38 milliard rubles, gain 2.1 milliard rubles, capitalization 2.52 milliard rubles, assets 6.85 milliard rubles., debt/equity 1.7 (4.0 is average for US and European leasing companies), profitability 34.5%. Equipment in leasing up to date worth of 20.36 milliard rubles. RTC-Leasing launched two bond issues in the amount of 500 million rubles and one milliard rubles, respectively. The first issue has been already redeemed, and the third 1.5 billion ruble issue is underway. RTC-Leasing serves over 50 regional telecommunication operators incorporated into Svyazinvest holding, various mobile and satellite phone operators, and Rostelecom, Russian largest ILD & DLD operator. |
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| Sberbank |
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| SISTEMA JSFC Since 1997 SISTEMA JSFC has been doing its consolidated financial accounts under GAAP. Deloitte & Touche is the Group’s auditor. As of January 2002 the market value of its assets including a stake in MTS equaled $3.042 billion. Currently SISTEMA JSFC owns and manages over 200 enterprises in different sectors of the economy including telecommunications (MTS, MGTS, MTU-Inform, Telmos, Comstar and a number of other leading telecommunications companies), electronics (NIME and MIKRON plant as well as a number of other microelectronics enterprises), insurance (ROSNO), radio engineering (the academician A.L. Mints radio technical institute, NPK NIDAR and others), real estate and construction (SISTEMA-HALS), oil and oil products ( UIC NEDRA, FIC KEDR-M), retail (Detsky mir trading house), finances and securities ( MBRD JSB), mass media (newspapers Rossia, Smena, Metro, Literaturnaya gazeta, Rosbalt agency, Maxima communication group), tourism (Intourist), sports (Olympiyskaya sistema), medicine (MTH medical technological holding). SISTEMA’s strategy includes consolidation of assets and enhancement of its presence on international capital markets. |
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| TNK |
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| United Metallurgical
Company Plants of OMK are famous for their production line. They are the largest Russian producers of pipe production, railway wheels, automobile springs, vanadium and etc. OMK occupies about 20% of Russian pipe market, 63% of domestic market of railway wheels. It produces nearly 75% of ferrovanadium and 47% of automobile springs in Russian Federation. OMK has a solid financial background. In 2001 company generated more than 1 billion in total sales. |
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