Released on = July 13, 2007, 2:37 am

Press Release Author = Shushmul Maheshwari

Industry = Retail

Press Release Summary = Findings of the World Bank report reveal that Russian
economy has been demonstrating positive growth over the past six years, and this
trend is expected to continue in the near future as well.

Press Release Body = As per World Bank’s Russian Economic Report, the sky
rocketing prices of oil would keep bringing dollars in to the economy of Russia,
thereby fueling the growth in its GDP. But, the inflow of foreign investment and
petrodollars would prevent the Government of Russia from keeping the inflation
within projected limits.

According to John Litwack, Russia’s Chief Economist, GDP is expected to grow
by over 7% this year (2007), considerably above the govt.’s forecasted 6.5%,
as reported by financialexpress.com on June 13, 2007.

\"Russian investment growth has mushroomed into a genuine boom in early 2007,\" said
the report, predicting that the current growth boom would break year 2000’s
record of 17.4%. The capital investment grew 19.9% over the first four months (from
January to April) of the year in comparison to corresponding period last year
(2006).

Metallurgy and commodities sectors are Russia’s most lucrative sectors, with
the thriving domestic market that has shown rapid growth owing to the increasing
purchasing power, said World Bank in its report.

Investors are drawn towards the markets where they see a strengthening currency,
Ruble in this case, and where they can earn relatively stronger margins. Foreign
investment reached a record US$ 9.8 Billion in the 1Q of 2007, and around US$ 7.7
Billion of this investment went in industrial minerals. FDI (Foreign Direct
Investment) remained just US$ 3.8 Billion in the 1Q of 2006. Unemployment, a chronic
issue, is another problem in the economy of Russia figured out by the Bank experts.

According to RNCOS report “Russian Retail Sector Analysis (2007-2011)”,
“Russian economy has been growing at an impressive pace over the past six
years (period between 2001 and 2006). In spite of a minor lag during 2005-06,
economic growth during the recent years has remained generally on an upswing.
Ongoing strengthening of the currency (Ruble), and stable growth in personal incomes
are expected to help expand the retail market’s size to US$ 744.92 Billion by
the year 2011.

Key issues and facts analyzed in this report include: market size and scope of the
organized retail in Russia, factors driving growth in this sector, size of organized
market segment wise & its growth prospects, opportunities & challenges faced by
retailers in Russia, and so on.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM0303.htm
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Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
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info@rncos.com