For the first time in its thousand year history, Russia is becoming an integrated part of the larger world. The sustained strength of all quoted financial Russian markets — currency, debt and equity — are testimony to the reality of changes in the country's political and social spheres, as well as to real progress in the management of Russia's economy. The five-year rally in Russian assets from the stunning lows of 1998 reflects Russia's place not only as a vibrant developing market, but its unique role as a great power striving to reassert itself on the global stage.

Russia's economic prospects through 2005 may be summarized by:

• stable and competitive rouble loosely pegged at 30–32 to $1
• stable real GDP growth of 5%
• stable real industrial production growth of 4%
• strong gross fixed investment rising at 8% annually
• falling moderate inflation trending towards 10%
• falling moderate unemployment declining to 6%
• manageable, rapidly shrinking government debt
• rapidly rising real wages (since 1998 a sixfold rise in real wages)

With this momentum, opportunities abound. But so do risks — especially for those not yet familiar with the specific circumstances, personalities and drivers of the former Soviet Union. In assessing and balancing those risks, Alfa Capital's deep knowledge of Russia, and its team's wide experience in the country's development, make it source of great value to its clients; the backing of Alfa Bank and the Alfa Group, among the most respected leaders of the new Russia, make Alfa Capital a reliable and trusted partner for investors both at home and abroad.