BAT May Profit from Russian Troubles (fwd)

[Robert Weissman <rob@essential.org>]

                         August 21, 1998
 Some U.K. Firms Hope To
 Benefit From Russia's Woes

 By LUCY FARNDON
 Dow Jones Newswires

 LONDON -- Some British companies active in Russia
 think that country's economic crisis may improve their
 returns, as the de facto devaluation of the ruble makes
 their products more attractive or increases their spending
 power.

 Take B.A.T Industries PLC (BTI), for example. A
 source close to the company said it's too soon to be
 sure, but the tobacco company is hoping that Russian
 smokers will have to switch from the high-priced imports
 they love into cheaper, domestic cigarettes like those
 made by B.A.T Russia, a standalone unit of the firm.

 So far, B.A.T's two Russian factories are still considered
 start-up operations, and they haven't yet contributed to
 group profits.

 Elsewhere, Dana Petroleum PLC (U.DNX) has
 benefited from a falling ruble before, Chief Executive
 Tom Cross said.

 "It improves our numbers," Cross explained in an
 interview. "We budget and plan in dollars, yet spend a
 large amount of our money in rubles."

 In 1994-95 - before Russia set the last ruble trading
 corridor - the ruble was generally falling, Cross said, and
 the company's capital spending ended up being around
 30% less than planned.

 Cross said Dana will continue as planned with its Russia
 operations, though he added that turmoil may limit new
 investments. In addition to other projects, Dana has
 worked with Russian oil company LUKoil Holdings
 (R.LKO) on exploration.

 -By Lucy Farndon; 44.171.832.9643;

 -lucy.farndon@cor.dowjones.com


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