The stockholders meeting of Ural Railway Mechanical Engineering Works JSC (UZhZM), member of Sinara Group, was held on May 18, 2006. The meeting was attended by the stockholders owning 74% of voting shares. The stockholders decided to approve of the company’s annual report and of the accounting statements for 2005. They also approved of some modifications and amendments to the articles of the association. The stockholders decided to pass a dividend for 2005. They also elected the members of the company’s Board of Directors, seven in number, and the inspection commission consisting of three

Integrated Metallurgical Complex of Nizhny Tagil (NTMK JSC), member of Evraz Group, is preparing to put into operation a new circulation vacuum vessel at its oxygen-converter plant. The vacuum vessel is used to remove detrimental gases from molten steel. NTMK has already received the vacuum vessel equipment by now. The German company SMS-Mevac has completely fulfilled its liabilities under its contract with NTMK. However, NTMK is going to manufacture some necessary units and the teeming ladle cars for the vacuum vessel on its own. Now the builders are completing the installation works.

On May 17, 2006, Sverdlovsk Regional Court of Arbitration adjudicated the claim laid by Koltsovo Airport JSC against Ural Airlines JSC. The airport demanded that Ural Airlines and the plaintiff sign the contract of handing over some socially important establishments to Yekaterinburg municipality and bear expenses of the handover on a pro rata basis. The plaintiff’s claim is based on the total privatization plan designed in 1993 during the privatization of the state enterprise Sverdlovsk Airline and its further disintegration into Koltsovo Airport JSC and Ural Airlines JSC. As a result, the

Shareholders of power generating company OGK-2 and of water power plant approved of the amendments to OGK-2 Charter proposing a merger with GRES generating company on May 15, 2006. The amendments state that OGK-2 takes on full liabilities and rights of the latter, including the ones concerning debtors and creditors, form the moment the merger has been completed. OGK-2 currently includes water power plants of Pskov, Stavropol, Surgut (a 100% share holding), Troitsk (fully controlled by GRES generating company), and Serov. GRES has recently gone through a public offer of 17,285.574,300 ordinary

Dukkerhoff AG of Germany decided to construct two cement production lines for SuholozhskCement JSC. The launch of the first line in 2007 will allow the company to raise its cement output by 1.3m tons a year and thus produce up to 3.6 million tons annually. The second line (to be launched in the beginning of 2008) will make it possible to further increase the cement output by another 1.3m tons. The total investments will come to $150m. The project was discussed at the meeting of Sverdlovsk Region Governor Eduard Rossel with management teams of both German and regional cement producers. The new

Integrated Metallurgical Complex of Nizhniy Tagil (part of Evraz Group) started rearranging its railways due to No. 5 blast furnace construction currently in process. The furnace will be put into operation in the second half of 2006 and should change the way the intramural railroad network is used, so the company now has to have some 700 meters of new railways and 8 points to make sure the furnace is supplied with coke and the converter shop with iron 24/7. According to the company’s spokesperson, the reconstruction project was designed last winter and the work started as soon as it was warm