OREANDA-NEWS. June 24, 2008. Net profit of Ust-Luga Company OJSC totaled RUR 109.946 million in 2007, the company reports. The annual general meeting of the shareholders decided to spend the net profit on the company development including 10% for charity (social assistance to the residents of the Kingisepp district and construction of a Holy Trinity Church with a side-chapel of Saint Nicholas the Wonderworker in the town of Ust-Luga. The company will not pay the dividendsfor 2007. The shareholders also elected the new Board of Directors:

Izrajlit V.S., Chairman of Ust-Luga Company BOD;

Drozdenko A.Yu., Vice-Governor of the Leningrad region;

Pasyada N.I., Vice-Governor of the Leningrad region on construction, road facilities, energy complex and housing maintenance;

Stepov V.V., head of Oktyabrskaya Railway (branch of Russian Railways OJSC);

Svetakov A.A., Chairman of the BOD of AKB Absolut Bank;

Yegiazarov V.V., managing partner of Aquila Capital Group;

Rybkin V.G., deputy Director General of Interjurconsult CJSC;

The BOD elected Valery Izrajlit the Chairman of the BOD, Maxim Shirokov – Director General of the Company.

Ust-Luga Company JSC is the customer-developer of commercial seaport Ust-Luga on the grounds of the contract with the Ministry of Transport of the RF of 15 June 2000. Ust-Luga Port is Russia’s largest infrastructure project aimed to solve the issue of deficit of Russian transshipment facilities at the Baltic Sea and to decrease transport costs for Russian manufacturers.

By 2015 the port is to handle 170 million tonnes of cargo including 50 million tonnes ensured by Baltic Pipeline System-2 (BPS-2), the end point of which is Ust-Luga as approved by RF Prime Minister Vladimir Putin on May 14, 2008.

The Master Plan for the port development envisages construction of 16 terminals for transshipment of different types of cargo including ro-ro, general, container, loose, liquid bulk cargo etc. The following terminals have been put into operation already: coal terminal, automobile-railway ferry complex, Multipurpose transshipment complex, first phase of Multipurpose transloading complex "Yug-2".

In 2007, the company continued the construction of port facilities, development of port infrastructure and railway approaches. Ust-Luga Company signed and started design work with NOVATEK OJSC on transshipment of gas condensate. The Company also signed a contract with Shipyard Pella for construction of two more tug boats and successfully completed placement of ruble bonds of Ust-Luga Company OJSC at the Stock Exchange of the MICEX. The Company also signed an investment contract with United Metallurgical Company CJSC to build a complex for transshipment of general cargo, a memorandum with Asia Invest LTD (Kazakhstan) on implementation of the project for construction of a complex for general cargo transshipment, as well as a memorandum with on implementation of the project for construction of two terminals to handle aluminium and alumina.

Total investments into Ust-Luga port exceeded \\$1 billion including \\$300 invested by Ust-Luga Company. In 2008, Ust-Luga Company is to invest some \\$500 million. Total investments are to make \\$1 billion in 2008.
The development of commercial seaport Ust-Luga is carried out within the framework of Federal Special-Purpose Program Modernization of Russia’s Transport System on public-private partnership principles.