Industrial Output Up 8.8% yoy in 2M08

According to the State Statistics Committee, industrial output rose 11.5% yoy in February 2008, following relatively weak 5.7% yoy growth in January. The main drivers of industrial output growth in February were machinery (+39.2% yoy) and chemicals (+11.2% yoy). Booming CIS and domestic markets’ demand favored growth in machinery production, whereas growth in the chemical sector was underpinned by rising global prices for chemical products. Industrial output in coke and the oil refining sector declined 15% yoy in February, the latter of which is attributed to reduced oil supplies from Russia.