FEDERAL COMMISSION FOR THE SECURITIES MARKET

For immediate distribution 13 December 2003

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

RUSSIA'S SECURITIES MARKET REGULATOR MEETS WITH NEW YORK STOCK EXCHANGE OFFICIALS

Reforms at the NYSE are main topics of discussion

13 December 2003, New York City — Igor Kostikov, Chairman of the Federal Commission for the Securities Market in Russia (FCSM of Russia), and Bob Britz, NYSE Co-Chairman and Bryant Seaman, NYSE Executive Vice President, met to share views on the major corporate governance reforms being implemented at the NYSE and those needed for the Russian stock markets.

Chairman Kostikov and his NYSE colleagues discussed a range of topical issues, including corporate governance, listing standards, research analyst conflicts of interest and the important self-regulatory role played by stock exchanges to maintain investor trust in the securities market. The parties focused on transparency in the operations of stock exchanges.

"Investor trust can be damaged by ethical and securities law violations by stock exchanges," said Kostikov. "The new NYSE leadership is implementing reforms that are vital in restoring the highest standards of independence, oversight and transparency and, most importantly, in rebuilding investor trust."

"In Russia, tens of millions of people have an estimated 20 billion dollars hidden in their homes because they don't trust banks or the securities market. Building trust in the securities markets as a whole will be critical in tapping into this important group of potential investors," said Kostikov. "We are taking measures to increase the protection of investor rights and the transparency of stock exchanges. We are also introducing harsher penalties for stock exchanges and professional market participants for their misdeeds, particularly as millions of Russians will soon have the opportunity to invest their pension savings in the securities market."

"We will monitor closely the corporate governance changes occurring at the New York Stock Exchange to identify approaches that can be applied to the Russian securities market," said Kostikov.

In meetings with major investors, Chairman Kostikov provided an overview of developments in the Russian securities market.

"The FCSM of Russia's strong and transparent regulatory regime has contributed to the development of a stable securities market that can rebound from occasional market downturns, such as the RTS drop," said Chairman Kostikov during meetings with investors.

Kostikov added: "We are committed to creating a solid foundation for long-term sustainable growth in Russia by encouraging companies to diversify their investments in the securities market. The percentage of oil and gas companies on the Russian stock exchange has dropped from 85 percent in 2002 to 65 percent, showing that the Russian securities market is diversifying and less susceptible to fluctuations in oil and gas prices."