Azerbaijan posts highest H1 industrial output growth in CIS

Interfax, Russia
Aug 4, 2006

Azerbaijan posted the highest year-on-year industrial output growth
in the CIS in the first half of 2006 at 41.1%, the CIS Interstate
Statistics Committee said Thursday.

Industrial production increased 22.4% in Turkmenistan, 12.6% in
Belarus, 6.3% in Tajikistan, 5.1% in Kazakhstan, 4.4% in Russia and
3.6% in Ukraine.

Production fell 6.8% in Kyrgyzstan, 6.4% in Moldova and 1% in Armenia.

The CIS statistics committee does not have industrial production
figures for Georgia, and Uzbekistan.

GDP grew 6.5% year-on-year on average in the CIS in the first half
of 2006 and industrial production was up 5.5%.

GDP growth was highest in Azerbaijan at 36.3%. GDP went up 11.9%
in Armenia, 10.1% in Belarus, 7.1% in Tajikistan, 5% in Ukraine, and
3.1% in Kyrgyzstan. GDP has not yet been calculated for the rest of
the CIS countries.

"The economic growth trend will continue to be restored throughout
the CIS in 2-6. However, half of the countries will see a lower rate
of growth than in 2005 and 2004 for many basic economic indicators.
The CIS Statistics Committee predicts that GDP will increase by an
average of 6% in the CIS, compared with 6.8% in 2005 and 8.1% in 2004,
and average growth in EurAsEC countries is, respectively, 6%, 6.7%
and 7.5%," the committee said.

"The rate of GDP growth in Azerbaijan will continue to grow at a record
high rate with continued increased oil production and the official
launch in June 2006 of the Baku-Ceyhan pipeline," analysts predicted.

"For Ukraine and Kyrgyzstan, GDP growth will be higher than the
relatively low base from the previous years. Ukraine saw the lowest
GDP growth in five years among all the CIS countries in 2005, while
in Kyrgyzstan production remained virtually at the same level as the
previous year due to reduced production at Kumtor," the analysts said.

"GDP growth is expected to slow in Armenia, Belarus, Georgia,
Kazakhstan, Moldova and Russia," the committee said. me