OREANDA-NEWS. On 30 June 2008 was announced, that Basic Element's revenues in 2007 were \\$26.8 billion, up 45% on the previous year, while the value of its assets almost doubled to \\$45 billion. In addition to the increase in assets, an important driver in Basic Element's revenue growth was the improved production performance of its sectors, particularly construction and manufacturing.

Revenues at the Energy and Construction Sectors grew fastest during 2007, with turnover at Energy rising by 49% to \\$16.2 billion and Construction to \\$1.6 billion. Revenues at the Manufacturing and Financial Services Sectors increased by over 30% to \\$6 billion and \\$1.9 billion. The Resources Sector boosted sales by 16% to \\$630 million last year. In mid-2007, Basic Element established an Aviation Sector whose companies achieved estimated revenues of \\$272 million last year.

"We are pleased to note that the increase in our revenue growth, in addition to new acquisitions, was driven by the organic growth in production performance at our businesses, in particular manufacturing and construction," said Gulzhan Moldazhanova, CEO of Basic Element.

Last year, Basic Element acquired major stakes in international and Russian companies.

Basic Element's Construction Sector bought 25% plus one share of Austria's largest construction group Strabag and 9.99% of the German company Hochtief, as well as 50% in the Russian company Transstroy, which specialises in building transport infrastructure. Russian Machines, Basic Element's Manufacturing Sector, completed a deal to acquire a 20% stake in the Canadian vehicle components manufacturer Magna.

By acquiring large stakes in some of the world's leading companies, Basic Element continued to follow its strategy of investing revenues from its profitable primary resources business in the development of competitive manufacturing industries and modern infrastructure.

In Basic Element's Energy Sector En + the merger of RUSAL, SUAL and the alumina assets of Glencore in the beginning of last year resulted in the creation of United Company RUSAL, the largest aluminum producer in the world. In 2007, the Company initiated the construction of the Komi Aluminium Bauxite and Alumina Complex, the largest in Eurasia, and of the Boguchansk and Tayshet aluminum smelters. At the end of 2007, UC RUSAL reached an agreement to buy a stake of 25% plus one share in Norilsk Nickel.

The Manufacturing Sector set up a plant to begin the assembly of the Siber car and started implementing a project to produce vehicle components in partnership with Magna.

Basic Element's Resources Sector bought Metallurg ferromolybdenum processing plant and made a closed-circulation water system ready for operation at the Baikal Pulp and Paper Mill.

The biggest assets in Basic Element's Financial Sector, Bank Soyuz and the insurance company Ingosstrakh, received higher ratings from the international rating agencies, while Element Leasing secured a loan a loan from the European Bank for Reconstruction and Development.

The companies in Basic Element's Construction Sector began laying the ground for participation in major public-private partnership projects . In June 2008, the Nevsky Meridian consortium, which includes Basic Element, was awarded the tender to construct the Western High-Speed Diameter, a 46.6km road and one of the largest infrastructure projects in the world. In 2007, Glavstroy began constructing Yuntolovo and Northern Valley, two large new districts in St. Petersburg .

Late last year, a goal was set before managers of Basic Element companies to ensure readiness of their business units for IPO on the Russian or international stock markets by 2010.

Basic Element's priorities for this year are the development of corporate governance and improving production efficiency, environmental protection and social responsibility.