UNITED STATES

SECURITIES AND EXCHANGE            COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF            REGISTERED**

**MANAGEMENT INVESTMENT            COMPANY**

**_______________________________**

Investment Company Act file number            811-06041

Central Europe & Russia Fund, Inc.

(Exact name of registrant as specified in            charter)

 

345            Park Avenue

New York, NY 10154

(Address of principal executive offices)                        (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and address of agent for            service)

Registrant's telephone number, including area            code:(212) 454-7190

Date of fiscal year end:10/31

Date of reporting            period:1/31/09

 

ITEM 1.            SCHEDULE OF INVESTMENTS

 

**THE CENTRAL EUROPE AND RUSSIA        FUND, INC.        SCHEDULE OF INVESTMENTS — JANUARY 31, 2009 (unaudited)**

| **Shares**                                             |       | **Description**                                               |       | **Value****(a)**                                               |   |
|--------------------------------------------------------|------------|---------------------------------------------------------------|------------|----------------------------------------------------------------|--------|
| **INVESTMENTS IN RUSSIAN****SECURITIES – 47.1%** |       |                                                          |       |
|                                                   |       | **COMMON STOCKS –                46.1%**                |       |
|                                                   |       | **BUILDING PRODUCTS –                0.1%**             |       |
|                                                   | 5,900      |                                                          |       | Gornozavodsktsement                                            |   | $ | 324,500 |   |   |
|                                                   |       | **COMMERCIAL BANKS –                4.0%**              |       |
|                                                   | 22,339,286 |                                                          |       | Sberbank                                                       |   |   | 10,499,465 |   |   |
|                                                   |       | **CONSTRUCTION****MATERIALS – 0.1%**                    |       |
|                                                   | 504,000    |                                                          |       | LSR Group (GDR) Reg S*                                         |   |   | 365,400 |   |   |
|                                                   |       | **DIVERSIFIED FINANCIAL****SERVICES – 0.0%**            |       |
|                                                   | 52,000     |                                                          |       | Vostok Nafta Investment (SDR)*†                         |   |   | 94,056 |   |   |
|                                                   |       | **DIVERSIFIED****TELECOMMUNICATION****SERVICES – 4.2%** |       |
|                                                   | 800,000    |                                                          |       | Comstar United Telesystems                (GDR) Reg S          |   |   | 1,920,000 |   |   |
|                                                   | 117,100    |                                                          |       | Rostelecom (ADR)†                                       |   |   | 6,042,360 |   |   |
|                                                   | 500,000    |                                                          |       | Vimpel Communications (ADR)                                    |   |   | 3,028,380 |   |   |
|                                                   |       |                                                          | 10,990,740 |                                                           |   |
|                                                   |       | **ELECTRIC UTILITIES –                0.1%**            |       |
|                                                   | 216,633    |                                                          |       | OJSC The Fifth Power                Generation (GDR)*          |   |   | 219,016 |   |   |
|                                                   |       | **ENERGY EQUIPMENT &****SERVICES – 0.4%**           |       |
|                                                   | 1,270,371  |                                                          |       | Integra Group Holdings (GDR)*                                  |   |   | 1,022,649 |   |   |
|                                                   |       | **FOOD PRODUCTS – 1.5%**                                |       |
|                                                   | 150,000    |                                                          |       | Wimm Bill Dann Foods (ADR)*†                            |   |   | 3,921,645 |   |   |
|                                                   |       | **MEDIA – 0.3%**                                        |       |
|                                                   | 200,000    |                                                          |       | CTC Media*                                                     |   |   | 718,000 |   |   |
|                                                   |       | **METALS & MINING –                3.4%**           |       |
|                                                   | 4,650,000  |                                                          |       | Kuzbassrazrezugol*                                             |   |   | 279,000 |   |   |
|                                                   | 500,000    |                                                          |       | Magnitogorsk Iron & Steel Works                (GDR) Reg S |   |   | 1,165,000 |   |   |
|                                                   | 1,725,542  |                                                          |       | MMC Norilsk Nickel (ADR)                                       |   |   | 7,143,744 |   |   |
|                                                   | 580,000    |                                                          |       | Raspadskaya                                                    |   |   | 499,380 |   |   |
|                                                   |       |                                                          | 9,087,124  |                                                           |   |

 

| **Shares**                                               |      | **Description**                                             |       | **Value****(a)**                                                                          |   |
|----------------------------------------------------------|-----------|-------------------------------------------------------------|------------|-------------------------------------------------------------------------------------------|--------|
|                                                     |      | **OIL, GAS & CONSUMABLE****FUELS – 29.1%**        |       |
|                                                     | 3,398,000 |                                                        |       | Gazprom                                                                                   |   | $ | 11,281,360 |   |   |
|                                                     | 1,000,000 |                                                        |       | Gazprom (ADR)                                                                             |   |   | 12,970,000 |   |   |
|                                                     | 300,000   |                                                        |       | LUKOIL                                                                                    |   |   | 10,290,000 |   |   |
|                                                     | 411,500   |                                                        |       | LUKOIL (ADR)†                                                                      |   |   | 13,558,925 |   |   |
|                                                     | 170,000   |                                                        |       | NovaTek OAO (GDR) Reg S                                                                   |   |   | 3,740,000 |   |   |
|                                                     | 4,800,000 |                                                        |       | Rosneft Oil Company                (GDR) Reg S                                            |   |   | 14,928,000 |   |   |
|                                                     | 2,200,000 |                                                        |       | Surgutneftegaz (ADR)†                                                              |   |   | 9,695,400 |   |   |
|                                                     | 52,000    |                                                        |       | Vostok Gas*†                                                                       |   |   | 1,254 |   |   |
|                                                     | 52,000    |                                                        |       | Vostok Gas (RDR)*                                                                         |   |   | 426,389 |   |   |
|                                                     |      |                                                        | 76,891,328 |                                                                                      |   |
|                                                     |      | **WIRELESS****TELECOMMUNICATIONS****SERVICES – 2.9%** |       |
|                                                     | 1,000,000 |                                                        |       | Mobile Telesystems                                                                        |   |   | 3,230,000 |   |   |
|                                                     | 100,000   |                                                        |       | Mobile Telesystems (ADR)                                                                  |   |   | 2,219,870 |   |   |
|                                                     | 100,000   |                                                        |       | Mobile Telesystems (GDR) Reg S                                                            |   |   | 2,219,870 |   |   |
|                                                     |      |                                                        | 7,669,740  |                                                                                      |   |
|                                                     |      |                                                        |       | Total Common Stocks                (cost $240,184,129)                                    |   |   | 121,803,663 |   |   |
|                                                     |      | **PREFERRED STOCK –                1.0%**             |       |
|                                                     |      | **OIL, GAS & CONSUMABLE****FUELS – 1.0%**         |       |
|                                                     | 1,320,000 |                                                        |       | Surgutneftegaz (ADR)                (cost $6,310,195)                                     |   |   | 2,652,830 |   |   |
|                                                     |      |                                                        |       | Total Investments                in Russian Securities                (cost $246,494,324) |   |   | 124,456,493 |   |   |
| **INVESTMENTS IN POLISH****COMMON STOCKS – 14.8%** |      |                                                        |       |
|                                                     |      | **COMMERCIAL BANKS –                7.2%**            |       |
|                                                     | 350,000   |                                                        |       | Bank Pekao†                                                                        |   |   | 10,971,787 |   |   |
|                                                     | 1,005,000 |                                                        |       | Powszechna Kasa                Oszczednosci Bank Polski†                           |   |   | 8,035,144 |   |   |
|                                                     |      |                                                        | 19,006,931 |                                                                                      |   |
|                                                     |      | **CONSTRUCTION &****ENGINEERING – 0.2%**          |       |
|                                                     | 97,175    |                                                        |       | Pol-Aqua*                                                                                 |   |   | 427,591 |   |   |

 

        6

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| **Shares**                                                       |      | **Description**                                               |       | **Value****(a)**                                                                                   |   |
|------------------------------------------------------------------|-----------|---------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------|--------|
|                                                             |      | **DIVERSIFIED****TELECOMMUNICATION****SERVICES – 5.0%** |       |
|                                                             | 2,350,000 |                                                          |       | Telekomunikacja Polska                                                                             |   | $ | 13,348,049 |   |   |
|                                                             |      | **METALS & MINING –                0.7%**           |       |
|                                                             | 200,000   |                                                          |       | KGHM Polska Miedz                                                                                  |   |   | 1,731,328 |   |   |
|                                                             |      | **OIL, GAS & CONSUMABLE****FUELS – 1.7%**           |       |
|                                                             | 460,000   |                                                          |       | Polski Koncern Naftowy Orlen*                                                                      |   |   | 2,963,389 |   |   |
|                                                             | 1,500,000 |                                                          |       | Polskie Gornictwo Naftowe I                Gazownictwo                                             |   |   | 1,639,297 |   |   |
|                                                             |      |                                                          | 4,602,686  |                                                                                               |   |
|                                                             |      |                                                          |       | Total Investments in Polish                Common Stocks                (cost $46,701,060)         |   |   | 39,116,585 |   |   |
| **INVESTMENTS IN CZECH REPUBLIC****COMMON STOCKS – 11.5%** |      |                                                          |       |
|                                                             |      | **COMMERCIAL BANKS –                1.6%**              |       |
|                                                             | 37,500    |                                                          |       | Komercni Banka AS                                                                                  |   |   | 4,174,858 |   |   |
|                                                             |      | **DIVERSIFIED****TELECOMMUNICATION****SERVICES – 4.0%** |       |
|                                                             | 570,000   |                                                          |       | Telefonica 02 Czech Republic                                                                       |   |   | 10,658,833 |   |   |
|                                                             |      | **ELECTRIC UTILITIES –                5.9%**            |       |
|                                                             | 450,000   |                                                          |       | Ceske Energeticke Zavody                                                                           |   |   | 15,533,559 |   |   |
|                                                             |      |                                                          |       | Total Investments in Czech Republic                Common Stocks                (cost $16,822,750) |   |   | 30,367,250 |   |   |
| **INVESTMENTS IN TURKISH****COMMON STOCKS – 11.1%**        |      |                                                          |       |
|                                                             |      | **AUTOMOBILES – 0.6%**                                  |       |
|                                                             | 2,100,000 |                                                          |       | Tofas Turk Otomobil Fabrikasi                                                                      |   |   | 1,531,542 |   |   |
|                                                             |      | **COMMERCIAL BANKS –                3.9%**              |       |
|                                                             | 5,999,998 |                                                          |       | Turkiye Garanti Bankasi                                                                            |   |   | 8,204,689 |   |   |
|                                                             | 750,000   |                                                          |       | Turkiye Is Bankasi                                                                                 |   |   | 1,677,404 |   |   |
|                                                             | 750,000   |                                                          |       | Turkiye Vakiflar Bankasi T.A.O.                                                                    |   |   | 546,979 |   |   |
|                                                             |      |                                                          | 10,429,072 |                                                                                               |   |
|                                                             |      | **CONSTRUCTION &****ENGINEERING – 0.6%**            |       |
|                                                             | 1,000,000 |                                                          |       | Tekfen Holding AS                                                                                  |   |   | 1,640,938 |   |   |

 

| **Shares**                                                 |      | **Description**                                               |      | **Value****(a)**                                                                              |   |
|------------------------------------------------------------|-----------|---------------------------------------------------------------|-----------|-----------------------------------------------------------------------------------------------|--------|
|                                                       |      | **FOOD & STAPLES****RETAILING – 1.0%**              |      |
|                                                       | 125,000   |                                                          |      | Bim Birlesik Magazalar                                                                        |   | $ | 2,696,913 |   |   |
|                                                       |      | **INDUSTRIAL****CONGLOMERATES – 1.0%**                  |      |
|                                                       | 799,999   |                                                          |      | Enka Insaat ve Sanayi                                                                         |   |   | 2,625,498 |   |   |
|                                                       |      | **INSURANCE – 1.9%**                                    |      |
|                                                       | 2,000,000 |                                                          |      | Aksigorta AS                                                                                  |   |   | 3,281,877 |   |   |
|                                                       | 2,172,618 |                                                          |      | Anadolu Hayat Emeklilik                                                                       |   |   | 1,756,158 |   |   |
|                                                       |      |                                                          | 5,038,035 |                                                                                          |   |
|                                                       |      | **OIL, GAS &****CONSUMABLE FUELS – 0.7%**           |      |
|                                                       | 200,000   |                                                          |      | Tupras-Turkiye Petrol                Rafinerileri                                             |   |   | 1,908,351 |   |   |
|                                                       |      | **WIRELESS****TELECOMMUNICATIONS****SERVICES – 1.4%**   |      |
|                                                       | 683,166   |                                                          |      | Turkcell Iletisim Hizmetleri                                                                  |   |   | 3,674,498 |   |   |
|                                                       |      |                                                          |      | Total Investments in Turkish                Common Stocks                (cost $48,336,365)   |   |   | 29,544,847 |   |   |
| **INVESTMENTS IN HUNGARIAN****COMMON STOCKS – 4.9%** |      |                                                          |      |
|                                                       |      | **COMMERCIAL BANKS –                0.9%**              |      |
|                                                       | 250,000   |                                                          |      | OTP Bank†                                                                              |   |   | 2,496,249 |   |   |
|                                                       |      | **DIVERSIFIED****TELECOMMUNICATION****SERVICES – 1.7%** |      |
|                                                       | 1,800,000 |                                                          |      | Magyar Telekom Plc                                                                            |   |   | 4,429,582 |   |   |
|                                                       |      | **OIL, GAS &****CONSUMABLE FUELS – 0.8%**           |      |
|                                                       | 50,000    |                                                          |      | MOL Hungarian                Oil and Gas Nyrt.                                                |   |   | 2,015,005 |   |   |
|                                                       |      | **PHARMACEUTICALS –                1.5%**               |      |
|                                                       | 30,000    |                                                          |      | Richter Gedeon Nyrt.                                                                          |   |   | 3,414,791 |   |   |
|                                                       | 4,300     |                                                          |      | Richter Gedeon Nyrt. (GDR)                                                                    |   |   | 548,250 |   |   |
|                                                       |      |                                                          | 3,963,041 |                                                                                          |   |
|                                                       |      |                                                          |      | Total Investments in Hungarian                Common Stocks                (cost $10,940,825) |   |   | 12,903,877 |   |   |

 

        7

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| **Shares**                                                   |       | **Description**                                     |   | **Value****(a)**                                                                                                                                                                                |   |
|--------------------------------------------------------------|------------|-----------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **INVESTMENTS IN AUSTRIAN****COMMON STOCKS – 2.3%**    |       |                                                |   |
|                                                         |       | **COMMERCIAL BANKS –                2.3%**    |   |
|                                                         | 400,000    |                                                |   | Erste Group Bank                (cost $11,459,735)                                                                                                                                              |   | $ | 6,067,290 |   |   |
| **INVESTMENTS IN KAZAKHSTANI****COMMON STOCKS – 1.2%** |       |                                                |   |
|                                                         |       | **OIL, GAS &****CONSUMABLE FUELS – 1.2%** |   |
|                                                         | 250,000    |                                                |   | KazMunaiGas Exploration                Production (GDR) Reg S                (cost $3,344,175)                                                                                                  |   |   | 3,175,000 |   |   |
| **CLOSED-END****INVESTMENT COMPANY – 0.4%**            |       |                                                |   |
|                                                         |       | **RUSSIA — 0.4%**                             |   |
|                                                         | 2,043,084  |                                                |   | RenShares Utilities Limited                (cost $3,249,403)*                                                                                                                                   |   |   | 1,021,542 |   |   |
|                                                         |       |                                                |   | Total Investments in                Common and                Preferred Stocks and                closed-end investment                company – 93.3%                (cost $387,348,637) |   |   | 246,652,884 |   |   |
| **SECURITIES LENDING****COLLATERAL - 16.7%**                 |       |                                                |   |
|                                                         | 44,219,082 |                                                |   | Daily Assets Institutional                Fund, 1.25%(b)(c)(cost $44,219,082)                                                                                                                   |   |   | 44,219,082 |   |   |

 

| **Shares**                                       |      | **Description**                                                     |   | **Value****(a)**                                                   |        |
|--------------------------------------------------|-----------|---------------------------------------------------------------------|--------|--------------------------------------------------------------------|-------------|
| **CASH EQUIVALENTS –                2.7%** |      |
|                                             | 7,254,575 |                                                                |   | Cash Management QP                Trust, 1.12%(c)(cost $7,254,575) |        | $ | 7,254,575 |   |   |
|                                             |      | Total Investments – 112.7%                (cost $438,822,294) |   |                                                               | 298,126,541 |   |   |
|                                             |      | Other Assets and Liabilities,                Net – (12.7%)    |   |                                                               | (33,753,513 | ) |   |
|                                             |      | **NET ASSETS–100.0%**                                         |   | $                                                                  | 264,373,028 |   |   |

 

*  Non-income producing        securities.

†  All or a portion        of these securities were on loan. The value of all securities loaned at January 31, 2009        amounted to $42,359,828 which is 16.0% of the net assets.

(a)  Values stated in US        dollars.

(b)  Represents collateral        held in connection with securities lending. Income earned by the fund is net of borrower        rebates.

(c)  Affiliated fund        managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized        seven-day yield at period end.

Key

ADR – American Depositary        Receipt

GDR – Global Depositary        Receipt

SDR – Swedish Depositary        Receipt

RDR – Redemption        Depositary Receipt

        8

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**Fair Value        Measurements**

*Financial Accounting Standards        Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements,"        establishes a three-tier hierarchy for measuring fair value and requires additional        disclosure about the classification of fair value measurements.*

*Various inputs are used in        determining the value of the Fund's investments. These inputs are summarized in three broad        levels. Level 1 includes quoted prices in active markets for identical securities. Level 2        includes other significant unobservable inputs (including quoted prices for similar        securities, interest rates, prepayment speeds and credit risk). Level 3 includes        significant unobservable inputs (including the Fund's own assumptions in determining the        fair value of investments). The inputs or methodology used for valuing securities are not        necessarily an indication of the risk associated with investing in those        securities.*

*The following is a summary of the        inputs used as of January 31, 2009 in valuing the Fund's investments. Please see below for        information on the Fund's policy regarding valuation inputs, and their aggregate levels        used in the table below:*

| **Valuation Inputs** |   | **Investments in****Securities** |            |
|----------------------|--------|----------------------------------|-----------------|
| Level 1              |   | $                                | 289,850,424     |   |   |
| Level 2              |   |                             | 8,276,117       |   |   |
| Level 3              |   |                             | —         |   |   |
| **Total**            |   | **$**                            | **298,126,541** |   |   |

 

        9

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| **ITEM 2.** | **CONTROLS AND PROCEDURES**                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|        | (a)                                 The Chief Executive                        and Financial Officers concluded that the Registrant’s Disclosure                        Controls and Procedures are effective based on the evaluation of the                        Disclosure Controls and Procedures as of a date within 90 days of the                        filing date of this report.                                      |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|        | (b)         There                        have been no changes in the registrant’s internal control over                        financial reporting that occurred during the registrant’s last fiscal                        quarter that has materially affected, or is reasonably likely to materially                        affect, the registrant’s internal controls over financial                        reporting. |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| **ITEM 3.** | **EXHIBITS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|        | Certification pursuant to Rule 30a-2(a) under the Investment                        Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as                        Exhibit 99.CERT.                                                                                                                                                                                                                                                                                |

 

 

**SIGNATURES**

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and            the Investment Company Act of 1940, the registrant has duly caused this report to be            signed on its behalf by the undersigned, thereunto duly authorized.

 

| Registrant: | Central Europe & Russia Fund, Inc. |
|-------------|----------------------------------------|

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | March 23, 2009 |
|-------|----------------|

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and            the Investment Company Act of 1940, this report has been signed below by the following            persons on behalf of the registrant and in the capacities and on the dates            indicated.

 

| Registrant: | Central Europe & Russia Fund, Inc. |
|-------------|----------------------------------------|

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | March 23, 2009 |
|-------|----------------|

 

 

| By: | /s/Paul Schubert |
|-----|------------------|

|   | Paul Schubert |
|--------|---------------|

Chief Financial Officer and Treasurer

 

| Date: | March 23, 2009 |
|-------|----------------|