Final Results

JPMorgan Russian Securities PLC
29 January 2008


                       LONDON STOCK EXCHANGE ANNOUNCEMENT

                        JPMORGAN RUSSIAN SECURITIES PLC

          UNAUDITED FINAL RESULTS FOR THE YEAR ENDED 31ST OCTOBER 2007


Chairman's Statement

I am delighted to report that your Company has produced another year of strong
returns for shareholders with a total return of +52.5% being achieved from net 
assets, compared to a return of +47.6% (in sterling terms) from the Company's 
new benchmark, the MSCI Russian 10/40 Equity Indices Index.

This has been particularly pleasing given the increased volatility in the
Russian equities market this year. The Company's share price rose by 52.4%
during the year to 31st October 2007 with the discount to net asset value
standing at 7.7% at the year-end. This is the fifth successive year that net
assets have outperformed the benchmark index since the Company became listed on
the London Stock Exchange in December 2002. Indeed, when performance is judged
over the long term, the total return on net assets equates to 627.7%.

Revenue and Earnings

The revenue loss after taxation for the year to 31st October 2007 was £739,000
with a loss per share of 1.32p. No dividend is payable in respect of the year
ended 31st October 2007.

Authority to Repurchase the Company's Shares

During the year under review the Company repurchased 80,000 shares for
cancellation at a discount of 11.6%. The Board continues to believe that a
facility to reduce discount volatility is important to have in place, and is
therefore seeking approval from shareholders to renew the authority at the
forthcoming Annual General Meeting.

Corporate Governance

The Company operates in accordance with corporate governance best practice. The
Board has reviewed the investment management, secretarial and marketing services
provided to the Company by JPMorgan Asset Management (UK) Limited. This annual
review has included their performance record, management processes, investment
style, resources and risk control mechanisms. The Board was satisfied with the
results of the review and therefore in the opinion of the Directors, the
continuing appointment of JPMAM for the provision of these services is in the
interests of shareholders as a whole.

Board of Directors

In accordance with the Company's Articles of Association, I will be retiring by
rotation at the forthcoming Annual General Meeting, along with Mr Patrick
Gifford. A Nomination Committee of the Board, consisting of Directors who are
not standing for re-election by rotation, has met to consider the attributes and
contribution of myself and Mr Gifford to the Board's deliberations. Following
this review, the Board recommends to shareholders that, taking into account our
respective investment experience and contribution to the Board, both Mr Gifford
and I be re-elected.

VAT on Management Fees

Following a ruling by the European Court of Justice, HM Revenue & Customs has
recently accepted that investment trusts should be exempt from VAT on investment
management fees. This means that henceforth, VAT will no longer be charged on
investment management fees and that the Company is entitled to seek
reimbursement of the VAT paid in previous years. However the Board has been
advised that the change will not have a significant financial impact on the
Company, as it has been able to recover most of the VAT suffered on investment
management fees paid in the past.

Outlook

Despite the recent downturn in the global economy, your Board remains optimistic
about the long term benefits of investing in the Russian economy. As detailed in
the Investment Managers' Report, the country appears to have all the required
ingredients to sustain economic growth. In particular a key theme developing in
Russia is the rise of the consumer and of consumer-related stocks, and the
portfolio is positioned to take advantage of this trend. In short, Russia
continues to offer exciting investment opportunities for more adventurous
investors.

Annual General Meeting

The Company's fifth Annual General Meeting will be held on Monday 3rd March 2008
at 12.00 noon., at Trinity House, Tower Hill, London, EC3N 4DH. In addition to
the formal part of the meeting, there will be a presentation from the investment
managers who will answer questions on the portfolio and performance. There will
also be an opportunity to meet the Board, the investment managers and
representatives of JPMorgan Asset Management. I look forward to seeing as many
of you as possible at this meeting.

Shareholders are asked to submit in writing any detailed or technical questions
that they wish to raise at the AGM in advance to the Company Secretary at
Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ. Alternatively you can lodge
questions on the Company's website at jpmrussiansecurities.co.uk.

Pamela Idelson Smith
Chairman 28th January 2008

Investment Managers' Report

We are very pleased to report another successful year of investing in the
Russian equity market. The Company achieved a total return on net assets of 
+52.5% against a benchmark return from the MSCI Russian 10/40 Equity Indices 
Index of +47.6% for the 12 months ended 31st October 2007.

Political and Economic Review

The Russian State recently declared two clear priorities. They are investment in
infrastructure and social spending. We anticipate that investment and
consumption will be two leading factors for economic growth in Russia over the
next decade. We can see some parallels with China, in terms of the impact on
economic growth

from significant state-led investment. Taking into account the vast territory of
Russia, a lack of significant investment in the last decade and with the
associated revenue support of continued strong economic growth, we would not be
surprised to see a 20-25% annual increase in infrastructure related investment
projects. Clearly it will take time to make all investment agencies work
efficiently at federal and regional levels, but some pilot projects such as
Sochi (infrastructure development in preparation for the Winter Olympic Games in
2014), will be a good test for the outlook of the entire country.

High rates of economic growth in the last decade have given a significant boost
to the GDP per capita of Russian consumers; Russia has leapfrogged the rest of
the major emerging market economies and clearly stands out in this respect. With
close to US$10,000 of GDP per capita today and forecast to be somewhat higher
next year, Russian society is moving from an industrial base towards a
service-led economy. This fundamental change will not take place overnight and
it is unlikely to be a smooth transition, but we are very certain that the
relative size of the service sector in the Russian economy in ten years from
now, will be significantly larger than today.

In the political arena the forthcoming election season is unlikely to bring any
major surprises and the general direction of economic policy in Russia will be
the same as it has been for the last five years. We anticipate that the high
political risks assigned today to the Russian market, due to the uncertainty
related to elections, will dissipate within the next six to nine months, and we
are less concerned about Russian political risk than most of the western mass
media.

Market and Portfolio Review

The differentiation of performance among sectors and stocks in Russia is
becoming more evident and the market is gaining some signs of maturity.

The Russian market tried to decouple from the oil price, but did not really
manage to achieve this. It is important to realise the positive and negative
consequences of this tendency. Earnings growth for the majority of the Russian
energy sector has significantly lagged behind the oil price increase. In spite
of this, Russian energy stocks have risen with the market and are now valued at
similar multiples to their global peers. Therefore investors will demand the
same level of equity returns from Russian companies as from the rest of the
global sector. We are somewhat sceptical that Russian companies, with the State
as a controlling shareholder, will be run as efficiently and in the interests of
minority shareholders as they would be run without State control.

In the last five years we have been living in an environment with continuous
upgrades of long term oil prices. During this period the consensus oil price
moved up from US$12-15 pbbl to US$65-75 pbbl. This is a massive increase which
reflects the reality of the current situation in the oil industry, supply and
demand balance in the global economy and the significant impact of geopolitical
risks. We are bullish on the oil price outlook, which is one of the reasons for
our positive outlook on the Russian economy. We do not think that the oil price
will collapse in 2008, but we do expect a slowdown in the rate of increase going
forward. We think that the profitability of the Russian oil sector has passed
its peak and that the operational environment for oil companies is becoming very
challenging. We do not believe that the Russian State will need to amend oil
taxation in the near future. Taxation of the oil sector in its current form is
forcing diversification and enhancing value creation in the economy, which are
key priorities for the Russian Government.

Finally, a great deal of value has been assigned by market commentators to the
residual value of Russian oil companies, but after the 'Yukos' saga and the last
four years of soft nationalisation in the Russian energy sector, it is difficult
to believe that any company of a significant size and value could be easily sold
to the highest bidder on the market rather than being sold to the State at an
arbitrary price. These factors together with the Government's desire to
prioritise infrastructure and human capital have led us to our major portfolio
decision of being underweight the energy sector. The portfolio has a large
overweight position in financials, real estate and materials.

The largest contributors to the Company's outperformance during the year were
the investments in Sberbank and Mechel. The underweight position in the energy
sector also was a significant contributor to outperformance.

Outlook

Today Russia as a major global emerging market participant is far more
integrated in the global economic cycle than it was in the past. It has proved
immune to the global liquidity crunch, due to plentiful domestic liquidity and
an undeveloped banking sector. However as a major global commodity producer,
Russia would be exposed to any significant slowdown in the global demand for
natural resources. In addition we would identify a risk in the year ahead to be
a significant withdrawal of investment by overseas investors who have enjoyed
positive returns for a number of years.

We believe in a long-term bright future for Russia. The country has all the
required ingredients to sustain economic growth: plentiful natural resources;
domestic liquidity; industrial/infrastructure capital and human capital. There
is long list of anticipated reforms and challenges in front of Russia as a
country. We believe that a steady path of economic and social development will
continue and as a result we expect Russia to be significantly larger in terms of
its economy in a decade from now, and we expect this to be reflected fully in
the value of the Russian equity market.

Oleg I. Biryulyov
Vitaly N. Kazakov
Investment Managers
28th January 2008

For further information, please contact:
Alison Vincent
For and on behalf of
JPMorgan Asset Management (UK) Limited - Secretary
020 7742 6000


JPMorgan Russian Securities plc
Unaudited figures for the year ended 31st October 2007

Income Statement


                                                    (Unaudited)                          (Audited)
                                            Year ended 31st October 2007       Year  ended 31st October 2006
                                         Revenue      Capital         Total    Revenue    Capital      Total
                                           £'000        £'000         £'000      £'000      £'000      £'000

Gains from investments held at fair
value through profit or loss                   -      137,901       137,901          -    102,441    102,441
Net foreign currency gains                     -        1,786         1,786          -        853        853
Income from investments (note 2)           7,311            -         7,311      4,137          -      4,137
Other interest receivable and
similar income (note 2)                      158            -           158        251          -        251
Gross return                               7,469      139,687       147,156      4,388    103,294    107,682

Management fee                           (5,063)            -       (5,063)    (3,511)          -    (3,511)

Other administrative expenses              (903)            -         (903)      (554)          -      (554)

Net return on ordinary activities
before finance costs and taxation
                                           1,503      139,687       141,190        323    103,294    103,617
Finance costs                            (1,259)            -       (1,259)      (502)          -      (502)



Net return/(loss) on ordinary
activities before taxation                   244      139,687       139,931      (179)    103,294    103,115
Taxation                                   (983)            -         (983)      (574)          -      (574)



Net (loss)/return on ordinary
activities after taxation                 (739)      139,687       138,948      (753)    103,294    102,541


(Loss)/return per share (note 3)         (1.32)p      249.63p       248.31p    (1.34)p    184.14p    182.80p



All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the year.

The 'Total' column of this statement is the profit and loss account of the
Company and the 'Revenue' and 'Capital' columns represent supplementary 
information. The 'Total' column represents all the information that is required 
to be disclosed in a Statement of Total Recognised Gains and Losses ('STRGL'). 
For this reason a STRGL has not been presented.

JPMorgan Russian Securities plc
Unaudited figures for the year ended 31st October 2007

Reconciliation of Movements in Shareholders' Funds  (Unaudited)


                                          Called up                   Capital
                                              Share        Other   redemption     Capital    Revenue               
                                            capital      reserve      reserve     reserve    reserve     Total
                                              £'000        £'000        £'000       £'000      £'000     £'000
                                                                                                        

At 31st October 2005                           562       53,361           39     111,209       (906)   164,265

Adjustment to opening shareholders'
funds at 1st November 2005 to reflect
the adoption of bid prices                       -            -            -     (1,276)          -    (1,276)  
Repurchase of shares for cancellation           (2)        (548)           2           -          -      (548)
Total return/(loss)from ordinary                  -            -           -     103,294       (753)   102,541
activities
At 31st October 2006                           560       52,813           41     213,227     (1,659)   264,982
Repurchase of shares for cancellation           (1)        (416)           1           -          -      (416)
Total return/(loss) from ordinary                 -            -           -     139,687       (739)   138,948
activities
At 31st October 2007                           559       52,397           42     352,914     (2,398)   403,514


JPMorgan Russian Securities plc
Unaudited figures for the year ended 31st October 2007

   Balance Sheet                                                        (Unaudited)            (Audited)
                                                                  31st October 2007    31st October 2006
                                                                              £'000                £'000
Fixed assets
Equity investments at fair value through profit or loss                     424,128              272,343
Investment in liquidity fund at fair value through profit or                 17,676                2,464
loss                                                                        _______              _______
Total invetment portfolio                                                   441,804              274,807

Current assets
Debtors                                                                       2,784                1,266
Cash and short term deposits                                                 17,553                1,491
                                                                            _______              _______
                                                                             20,337                2,757

Creditors: amounts falling due within one year                             (58,627)             (12,582)
                                                                            _______              _______
Net current liabilities                                                    (38,290)              (9,825)
                                                                            _______              _______
Total assets less current liabilities                                       403,514              264,982
                                                                            _______              _______
Total net assets                                                            403,514              264,982
                                                                            =======              =======
Capital and reserves
Called up share capital                                                         559                  560
Other reserve                                                                52,397               52,813
Capital redemption reserve                                                       42                   41
Capital  reserve                                                            352,914              213,227
Revenue reserve                                                             (2,398)              (1,659)
                                                                            _______              _______
Shareholders' funds                                                         403,514              264,982
                                                                            =======              =======
                                                                                                       =
Net asset value per share (note 4)                                           721.4p               473.1p



Cash Flow Statement                                                     (Unaudited)            (Audited)
                                                                  31st October 2007    31st October 2006
                                                                              £'000                £'000

Net cash inflow/(outflow) from operating activities (note 5)                  1,108                (561)

Returns on investments and servicing of finance                             (1,134)                (525)

Net cash outflow from capital expenditure and financial                     (9,542)              (4,769)
investment

Net cash inflow/(outflow) from financing                                     25,447              (7,501)
                                                                            _______              _______
Increase/(decrease)  in cash for the year                                    15,879             (13,356)
                                                                            =======              =======


Notes to the Accounts

1. Accounting policies

The accounts are prepared in accordance with the Companies Act 1985 and 2006,
United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the
Statement of  Recommended Practice 'Financial Statements of Investment Trust
Companies' (the 'SORP') issued by the AIC in December 2005. The Preliminary
Announcement is prepared on the same basis as set out in the previous year's
annual accounts.

2. Income

                                                                 (Unaudited)                            (Audited)
                                                           31st October 2007                    31st October 2006
                                                                       £'000                                £'000
Income
Income from investments
Dividends from investments listed overseas                            7,311                                4,137

Other interest receivable and similar income
Deposit interest                                                        158                                  251
                                                                      7,469                                4,388


3. (Loss) / return per share


                                                                           (Unaudited)            (Audited)
                                                                     31st October 2007    31st October 2006
                                                                                 £'000                £'000
(Loss)/return per share is based on the following:


Revenue loss                                                                     (739)                (753)

Capital return                                                                 139,687              103,294

Total return                                                                   138,948              102,541

Weighted average number of shares in issue                                  55,957,427           56,094,887


Revenue loss per ordinary share                                                (1.32)p              (1.34)p

Capital return per ordinary share                                              249.63p              184.14p
Total return per ordinary share                                                248.31p              182.80p


4. Net asset value per share

The net asset value per share is based on the net assets attributable to the
ordinary shareholders of £403,514,000 (2006: £264,982,000) and on the 55,932,812
(2006: 56,012,812) shares in issue at the year end.

                                                               (Unaudited)                             (Audited)
                                                         31st October 2007                     31st October 2006
5.                                                                   £'000                                 £'000
Reconciliation of total return on ordinary activities
before finance costs and taxation to net cash inflow
from operating activities
Total return on ordinary activities before finance
costs and taxation                                                141,190                               103,617
Less capital return before finance costs and taxation            (139,687)                             (103,294)
Decrease / (increase) in accrued income                                44                                  (370)
Decrease in other debtors                                              62                                    21
Increase in accrued expenses                                          482                                    53
Overseas withholding tax                                             (983)                                 (588)
Net cash inflow / (outflow) from operating activities               1,108                                  (561)


6. Status of preliminary announcement

The financial information set out in this preliminary announcement does not
constitute the Company's statutory accounts for the years ended 31st October
2007 or 2006, as defined in Section 240 of the Companies Act 1985. The
comparative financial information is an extract from the statutory accounts for
the year ended 31st October 2006. Those accounts, upon which the auditors issued
an unqualified opinion and which contained no statement under Section 237 (2) or
237 (3) of the Companies Act 1985, have been delivered to the Registrar of
Companies. The statutory accounts for the year ended 31st October 2007 have not
been delivered to the Registrar of Companies, nor have the auditors yet reported
on them. The statutory accounts for the year ended 31st October 2007 will be
finalised on the basis of the information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the approval of the accounts by the Board of Directors.

JPMORGAN ASSET MANAGEMENT (UK) LIMITED



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