FEDERAL COMMISSION FOR THE SECURITIES MARKET

For immediate distribution 11 December 2003

For more information: FCSM of Russia Press Service (095) 937-2174

RUSSIA'S TOP FINANCIAL MARKET REGULATOR MEETS
U.S. COUNTERPARTS

FCSM of Russia Chairman Kostikov updates investors, business leaders and graduate business students on the status of the Russian securities markets and
addresses concerns

11 December 2003 — Washington, DC — Igor Kostikov, Chairman of the Federal Commission for the Securities Market of Russia (FCSM of Russia), met with regulatory counterparts at the United States Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB) and the Commodity Futures Trading Commission (CFTC) on expanding cooperation between Russia and the United States on enforcement actions and regulation of the activities of stock exchanges and professional market participants.

"My colleagues at the US Securities and Exchange Commission, the Public Company Accounting Oversight Board and the Commodity Futures Trading Commission are helping to further enhance the level of our mutual cooperation to address violations of our respective laws," said Chairman Kostikov.

Chairman Kostikov discussed with the U.S. SEC, the American counterpart to the FCSM of Russia, possible violations of insider trading laws by bond issuers who potentially profited from illegally accessed information prior to Moody's decision on October 8, 2003 to raise Russia's debt rating to investment grade. Chairman Kostikov also discussed regulatory standards and best practices for stock exchanges and the investment professionals.

"Profiting from insider information at the expense of investors cannot be tolerated," said Chairman Kostikov.

Chairman Kostikov and CFTC Chairman James Newsome discussed issues on regulation of the futures markets and corporate governance practices.

The Chairmen agreed that they are committed to further cooperation between the CFTC and the FCSM. Chairman Newsome said that "we agree to join in efforts to build open and effective channels of communication in the U.S. and Russia through the exchange of information and technical assistance programs."

Chairman Kostikov also met with Congressman Michael Oxley (R-OH) to look at corporate governance issues, the latest probes into financial fraud and trade practice abuses, and other issues. The Russian regulator briefed his U.S. counterpart on the Russian Corporate Governance Code and progress made in advancing corporate ethics among Russian companies. He drew special attention to the bill "On Insider Information," promoted by the FCSM of Russia.

"Effective law enforcement is the key to building investor confidence," said Chairman Kostikov. "The legal and regulatory framework for protecting investors in Russia will only be as good as our ability to enforce the law against violators both in Russia and abroad."

Chairman Kostikov also consulted with America's top public accounting regulator, William McDonough, Chairman of the Board of the PCAOB, on the implementation of fair and informative accounting and financial reporting standards to protect the interests of investors and to discuss the Sarbanes-Oxley Act of 2002.

"Chairman McDonough and I share a common view on the importance of keeping the accounting and auditing profession and the professional investment community responsible for actions that impact the interests of investors," said Chairman Kostikov.

The U.S. regulators agreed with the FCSM of Russia on the need to immediately adopt the Law "On Insider Information" to bolster investor confidence in the Russian stock market.

Chairman Kostikov also met with investors and business leaders to brief them on the status of the Russian securities market and to hear their views on the investment climate in Russia.

"The American investors and business leaders I met were impressed with the stability of the securities market and economy, despite the recent market downturns related to developments in the Yukos matter," said Chairman Kostikov. "The investment opportunities offered by the generally high performing Russian securities market are very attractive to American investors."

Chairman Kostikov's final stop on his official working visit to the United States will be New York City, where he will meet with investors, regulators, high-level federal and local political leaders and financial news media.