ENR Russia Invest’s net asset value rose 17% over the first quarter of 2006 and is up 43% as compared with the first quarter of 2005. We are satisfied with this performance re-flecting the management’s efforts to achieve a steady, risk-adjusted return to investors in what has historically been a volatile investment environment.

In early 2006 Russian assets benefited from a highly condu-cive external environment; including the sustained strength of commodity prices, Asian growth drivers and global liquidity. Foreign portfolio inflows reached record levels over the first quarter, easily surpassing total inflows for the full 12 months of 2005 (which was itself was a banner year.). The rebalancing of Russia within the highly influential MSCI Emerging Market indices further fanned foreign investor enthusiasm. Russia’s country weightings in the index now matches China and South Africa, trailing only Taiwan and Korea. Meanwhile Gazprom, (already one of the world’s largest companies in terms of market capitalization, rivalling Microsoft Corp, General Electric and Exxon) has become the single largest emerging market company ahead of Samsung Electronics.

Abundant liquidity, both foreign and domestic, translated into rapid price appreciation, particularly in the oil and gas sectors. However, a sudden reversal of risk tolerance (itself brought on by concerns over higher global inflation and rising interest rates), led to a significant withdrawl of portfolio funds in the second quarter. In turn this brought on a wave of redemption driven selling.

Price volatility is nothing new to the Russian market. Over the past 24 months the equity index has corrected no fewer then seven times, each by more then 10% (including a 20% share price fall in the spring of 2005). Following each of these cor-rections the market has recovered to new highs. Interestingly, unlike previous market declines, trading volumes have remai-ned high. Russian domestic mutual funds have consistently reported net inflows in spite of market conditions. Overall share valuations are not high with market’s price to earning ratio’s in single digits and corporate earnings expanding 15-20% annually. On the macro-economic level we expect Rus-sian GDP to grow by between 5%-7% this year, even adjusting for the possibility for lower oil prices. Furthermore, Russia’s fiscal position is rock solid with no net-debt and a large bud-get surplus. Indeed government’s financial resources have ballooned over the past 12 months with the stabilization fund expected to reach $75-$85bn by year-end (an equivalent to 10% of GDP).

derivative financial instruments 1.1%

energy 15.3%

mining3.9%

oil & gas 22.8%

other3.1%

real estate 13.7%

telecommunications 15.6%

auto parts & equipment 2.0%

banking and finance services10.3%

retail10.0%

steel manufacturing 2.1%

listed equity 59.6%

private equity 22.0%

fixed income 3.5%

real estate 13.7%

derivative financial instruments 1.1%

31.03.2006

First Quarter Report 2006

ENR Russia Invest SA • 2-4 Place du Molard • 1204 Geneva 3 • Tel : +41 22 716 1000 • Fax : +41 22 716 1001 • www.enr.ch

Investment Portfolio by Sector Investmen portfolio by Asset Class

Listed and Private Securities Market Value % of NAV (CHF 000s)

Sarnatus 47’668’767 10.60%Naftrans 45’055’220 10.02%EPH 41’769’623 9.29%Panariello 25’488’601 5.67%Gazprom 24’223’005 5.39%Sibirtelecom 23’327’526 5.19%Saratovenergo 18’029’101 4.01%OGK-3 13’499’149 3.00%VTB Capital 13’008’398 2.89%Surgutneftegaz 12’405’134 2.76%

Top 10 Investments

Organization BoardofDirectors ChristophLöw Chairman GustavStenbolt Vice-Chairman PeterRüegg Member WalterFetscherin Member InvestmentCommittee GustavStenbolt-TimothyRogers-ChristineSpyrou-Catras GeorgvonOpel-AlexanderNikolaev-MedinaDietz InvestmentManager MCTInternationalLimited,B.V.I. InvestmentAdvisor MCTAssetManagementS.A. PortfolioManagementCommittee AlexanderNikolaev-ChristineSpyrou-Catras-MedinaDietz Custodian Pictet&Cie,Geneva-INGBankEurasiaA/O,Moscow Administrator Rhône-AuditSociétéFiduciaireS.A.,Geneva Auditors PricewaterhouseCoopers,Geneva ManagementFee 2%perannumoftheaverageNetAssetValue PerformanceFee 15%oftheamountiftheNetAssetValue

PublicationList NAVPublication Finanz&Wirtschaft(twiceaweek)-TheFinancialTimes(onceaweek) Reuters:OZBankers(daily)-Bloomberg(daily) InterimReport AvailableonrequestfromtheCompany,or onthecompanywebsite–www.enr.ch Listing SWXSwissExchange TickerSymbol Bloomberg:ENRSWReuters:ENRZ.S SecurityNumber BearerShares347166–CH0003471668 Convertiblebonds2324739–CH0023247395

InvestmentPolicy TheinvestmentobjectiveoftheCompanyistomaximizelongtermereturnstoshareholders.TheinvestmentManagerintendstoachievethisbyinvestingtheCompany’sassetsinadiversifiedportfolioofsecuritiesofcompanieswithsubstantialactivitiesinRussiaandinotherCISandothersBalticstates,andwithincertainlimits,indebtinstruments,physicalcommoditiesandprivatizationvouchers.

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Summary

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1) Capital increase of 250’000 shares, par value CHF 50, subscription price CHF 120 on June 30, 1997

2) Capital increase of 418’000 shares, par value CHF 50, subscription price CHF 95.80 on April 26, 2002

3) Capital increase of 2’016 shares, par value CHF 50 on May 5, 2004*

4) Capital increase of 45’199 shares on June 28, 2004* Capital increase of 56’069 shares on September 13, 2004* 5) Capital increase of 12’787 shares on November 3, 2004* 6) Capital increase of 983 shares on April 1, 2005* Capital increase of 1’967 shares on April 7, 2005* Capital increase of 38’363 shares on April 14, 2005* 7) Capital increase of 9’934 shares on August 19, 2005* Capital increase of 9’836 shares on September 2, 2005* Capital increase of 9’836 shares on September 22, 2005* Capital increase of 22’771 shares on September 23, 2005* Capital increase of 4’918 shares on September 27, 2005*

* Par value of shares is CHF 50, capital increase is by conversion of convertible bonds with a conversion factor

of 49.18 shares per CHF 5,000.00 bond

Price information

ENR NAV

NetAssetsCHFNAVpershareCHF SharepriceCHFDate Net Assets CHF NAV per share CHF Share price CHF (inthousands)

31.12.1995 45’958 75.31 88.69 30.6.1996 70’260 115.13 118.55 31.12.1996 69’202 113.39 109.64 30.6.1997 1) 162’998 217.33 154.00 31.12.1997 149’752 199.67 155.00 30.6.1998 65’003 86.67 91.00 31.12.1998 N/A N/A 25.85 30.6.1999 N/A N/A 24.20 31.12.1999 N/A N/A 25.85 30.6.2000 30’261 40.35 34.00 31.12.2000 32’296 43.06 38.50 30.6.2001 52’710 70.28 48.10 31.12.2001 54’244 72.32 49.00 30.6.2002 2) 121’621 104.13 86.00 31.12.2002 116’444 99.69 80.00 31.3.2003 116’894 100.08 79.50 30.6.2003 145’440 124.52 95.50 30.9.2003 163’087 139.63 102.75 31.12.2003 179’524 153.70 114.50 31.3.2004 219’283 187.74 140.50 30.6.2004 3) 208’134 177.44 137.50 30.9.2004 4) 225’853 177.65 135.00 31.12.2004 5) 239’491 186.51 136.00 31.3.2005 250’862 195.36 151.00 30.6.2005 6) 261’644 197.40 149.00 30.9.2005 7) 337’346 243.98 174.00 31.12.2005 8) 383’133 231.32 184.00 31.3.2006 449’810 279.27 220.00

ENR Russia Invest SA • 2-4 Place du Molard • 1204 Geneva 3 • Tel : +41 22 716 1000 • Fax : +41 22 716 1001 • www.enr.ch