Russian Balahninsky Volga reported overall loss of RUR 161.089 million in 2003

Jun 29, 2004. /Lesprom Network/. Russian Balahninsky Volga pulp and paper enterprise (Nizhny Novgorod, Russia’s major newsprint producer)general meeting prepared the annual report that claims the overall loss reached RUR 161.089 million, the enterprise’s top-management told Lesprom.ru. The dividends were not discussed during the meeting due to the loss reported. In 2002 the enterprise paid no dividends either ad allocated the net profits of RUR 583.203 million to the compensation of the losses and further development. Sales profits earnings increased 2.8% to RUR 5.950114 billion, cost price – up 24.9% to RUR 44.385505 billion, sales profits – down 3.8 times to RUR 207.263 million. The loss in 2003 was due to the growth of cost price that increased because of the electric power and pulp costs, as well as due to the decline of paper export prices. The enterprise’s credit arrears declined 13.3% to RUR 201.534 million by January,1 2004, debit arrears – down 13.3% to RUR 776.468 million. Newsprint production increased 4.9% to 542.298 thousand tons, including newsprint for export – 356.388 thousand tons (65.9% of the total volume). In 2002 73.7% of newsprint were exported. The shareholders elected a board of 7 members, however the names have not yet been disclosed. As Lesprom.ru reported earlier, 10 candidates were offered to compete for the 7 posts: Alfa-Bank president Peter Aven, Ost-West group chairman of the board Shalva Breous, Ost-West group deputy-CEO Alexey Ahuba, Gosconcert deputy-CEO Vakhtang Bagzhelidze, Poligrafkarton president Anatoli Vovk, Ost-West group CEO Yuli Kaloev, Ost-West group director of department Andrei Kuzkmin, Alfa-Eco M vice-president on economics and finance Vadim Kucharin, Ost-West group member of the board Yuri Petukhov. The enterprise declined to announce the name of the auditor appointed for 2004, however 2 candidates were nominated: PriceWaterhouseCoopers (Moscow) and Deloitte&Touche. Volga stock capital is RUR 1121839 thousand, divided into 11.808827 million ordinary shares at RUR 95 par value. 92.97% of Volga shares were owned by Nizhny Newsprint Holdings Limited by May,14 2004 (the date of the registers closure), the majority stake of Nizhni Newsprint Holding Ltd is owned by Ost-West group; 3.5% - NBD Bank (Nizhny Novgorod, nominal shareholder); 2% - by the employees, 0.24% by the Federal Property Fund.