U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-QSB

    FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934 (MARK ONE)

[X]         QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
            SECURITIES  EXCHANGE  ACT  OF  1934

                           FOR THE THREE MONTHS ENDED
                                 MARCH 31, 2006

[_]         TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
            SECURITIES  EXCHANGE  ACT  OF  1934

                        Commission File Number 000-27189

                            VICTORIA INDUSTRIES, INC.
                (Name of Registrant as specified in its charter)

                  NEVADA                               98-0230423
    (State or other jurisdiction of                (I.R.S. Employer
    incorporation or organization)              Identification Number)

        551 Fifth Avenue, Suite 601
            New York, New York                            10017
  (Address of principal executive office)              (Zip Code)

ISSUER'S TELEPHONE NUMBER: (212) 973-0063

Securities registered under Section 12(b) of the Exchange Act:

     Title of each class              Name of each exchange on which registered
         Common shares                            OTC Bulletin Board

Securities registered under Section 12(g) of the Exchange Act: Common Stock

Check  weather the issuer is not required to file reports pursuant to Section 13
or 15(d) of the Exchange Act:                                                [_]

Note  -  Checking the box above will not relieve any registrant required to file
reports  pursuant  to  Section  13  or  15(d)  of  the  Exchange  Act from their
obligations  under  those  Sections.

                              PERSONS  WHO  ARE  TO RESPOND TO THE COLLECTION OF
                              INFORMATION  CONTAINED  IN  THIS  FORM  ARE  NOT
                              REQUIRED  TO  RESPOND  UNLESS  THE FORM DISPLAYS A
     SEC 2334 (3-06)          CURRENTLY  VALID  OMB  CONTROL  NUMBER.

Check  weather  the issuer (I) filed all reports required to be filed by Section
13  or  15(d) of the Exchange Act during the past 12 months (or for such shorter
period  that the registrant was required to file such reports), and (2) has been
subject  to  such  filing  requirements  for  the  past  90 days. Yes [_] No [X]

Check  if  there is a disclosure of delinquent filers in response to Item 405 of
Regulation  S-B  contained in this form, and no disclosure will be contained, to
the  best  of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in  Part  II of this Form 10-QSB or any
amendment  to  this  Form  10-QSB.                                           [_]

Indicate  by check mark whether the registrant is a shell company (as defined in
Rule  12b-2  of  the  Act).                                    Yes  [_]  No  [X]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of May 12, 2006:

Common Stock; 10,965,090
------------------------

Transitional Small Business Disclosure Format (Check one):  Yes [_]; No [X]


<PAGE>
<TABLE>
<CAPTION>
VICTORIA INDUSTRIES, INC.

FORM 10-QSB

                                                    TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION                                                                                       Page
                                                                                                                    ----
<S>         <C>                                                                                                     <C>
Item 1.     Financial Statements (unaudited)

            Consolidated Balance Sheets - March 31, 2006 and December 31, 2005. . . . . . . . . . . . . . . .  . . .

            Consolidated Statements of Operations and Comprehensive Income (Loss) - for the three months ended
            March 31, 2006 and 2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

            Consolidated Statements of Changes in Stockholder's Equity (Capital Deficit) - March 31, 2006 and
            December 31, 2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

            Consolidated Statements of Cash Flows - for the three months ended March 31, 2006 and 2005 . . . . . . .

            Notes to Unaudited Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . .

Item 2.     Management's Discussion and Analysis of Principal Condition and Operations . . . . . . . . . . . . . . .

Item 3.     Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . . . . . . . . . .

Item 4.     Controls and Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART II.    OTHER INFORMATION

Item 1.     Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds. . . . . . . . . . . . . . . . . . . . . . .

Item 3.     Defaults upon Senior Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Item 4.     Submission of Matters to a Vote of Security Holders. . . . . . . . . . . . . . . . . . . . . . . . . . .

Item 5.     Other Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Item 6.     Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SIGNATURES
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
                                                                                  VICTORIA INDUSTRIES, INC.
                                                                                CONSOLIDATED BALANCE SHEETS
                                                                                  (EXPRESSED IN US DOLLARS)
                                                                                                  UNAUDITED

-----------------------------------------------------------------------------------------------------------

                                                                                 MARCH 31,    DECEMBER 31,
                                                                                   2006           2005
                                                                             --------------  --------------
<S>                                                                          <C>             <C>
ASSETS

CURRENT ASSETS
  Cash and cash equivalents                                                  $       3,186   $      32,301
  Accounts receivable                                                            2,704,175       1,750,404
  Related party receivable - current portion                                       270,381         270,381
  Taxes receivable                                                                 392,421         404,325
  Inventories                                                                       47,930               -
  Prepayments and other current assets                                             140,304         118,573
  Deferred tax asset                                                                 6,749           6,957

                                                                             --------------  --------------
    Total current assets                                                         3,565,146       2,582,941

Property, plant and equipment, net                                                   1,131           1,183
Related party receivable                                                            66,290         132,065

                                                                             --------------  --------------
TOTAL ASSETS                                                                 $   3,632,567   $   2,716,189
                                                                             ==============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Short term borrowings from related parties                                 $      77,925   $      77,925
  Short term bank loans                                                            416,571         409,039
  Accounts payable                                                               1,835,918         843,886
  Taxes payable                                                                     47,284          34,485
  Other current liabilities                                                        120,844         334,326
  Interest payable                                                                   6,926           2,360

                                                                             --------------  --------------
    Total current liabilities                                                    2,505,468       1,702,021

Commitments and Contingencies (Note 19)                                                  -               -


STOCKHOLDERS' EQUITY

  Common stock, $0.001 par value, 10,965,090 shares issued and outstanding          10,965          10,965
  Additional paid-in capital                                                     1,833,477       1,823,629
  Accumulated deficit                                                             (727,455)       (818,200)
  Accumulated other comprehensive income (loss)  - foreign currency                 10,112          (2,226)

                                                                             --------------  --------------
Total stockholders' equity                                                       1,127,099       1,014,168

                                                                             --------------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                   $   3,632,567   $   2,716,189
                                                                             ==============  ==============
<FN>
          The accompanying notes are an integral part of the consolidated financial statements
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
                                                VICTORIA INDUSTRIES, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
                          (EXPRESSED IN US DOLLARS, EXCEPT SHARE AMOUNTS)
                                                                UNAUDITED

-------------------------------------------------------------------------

                                                FOR THE PERIODS ENDED
                                               MARCH 31,      MARCH 31,
                                                 2006            2005
                                             -------------  -------------
<S>                                          <C>            <C >
REVENUES                                     $  2,455,164   $   594,204

COST OF SALES                                  (2,102,014)      (406,546)
                                             -------------  -------------
                                                  353,150        187,658

OPERATING EXPENSES
Sales, general and administrative                (178,022)      (184,657)
Compensation                                       (9,848)       (19,389)
Professional fees                                  (9,469)             -
Depreciation and amortization                        (151)           (77)
                                             -------------  -------------

OPERATING INCOME (LOSS)                           155,660        (16,465)

OTHER INCOME (EXPENSE)
Interest income                                     4,164          4,099
Interest expense                                  (11,487)          (315)
Foreign exchange loss                             (42,916)        (1,814)
Other expense, net                                      -         (1,997)
                                             -------------  -------------

INCOME (LOSS) BEFORE TAX                          105,421        (16,492)

FOREIGN INCOME TAX                                (14,676)         4,620
                                             -------------  -------------

NET INCOME (LOSS)                                  90,745        (11,872)
                                             -------------  -------------

Other comprehensive (loss) income
  Foreign currency translation income (loss)       12,338         (1,147)
                                             -------------  -------------

COMPREHENSIVE INCOME (LOSS)                  $    103,083   $    (13,019)
                                             =============  =============

BASIC INCOME (LOSS) PER SHARE
  From Continuing operations                 $       0.01   $     (0,001)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING     10,965,090     10,965,090
<FN>
     The accompanying notes are an integral part of the consolidated
                           financial statements
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
                                                                                                       VICTORIA INDUSTRIES, INC.
                                                    CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (CAPITAL DEFICIT)
                                                                                                                       UNAUDITED
                                                                                 (EXPRESSED IN US DOLLARS, EXCEPT SHARE AMOUNTS)
--------------------------------------------------------------------------------------------------------------------------------

                                               COMMON STOCK      ADDITIONAL     ACCUMULATED     ACCUMULATED         TOTAL
                                                                   PAID-IN         OTHER         (DEFICIT)      STOCKHOLDERS'
                                                                   CAPITAL     COMPREHENSIVE                        EQUITY
                                              SHARES    AMOUNT                    (LOSS)                      (CAPITAL DEFICIT)
                                            ----------  -------  -----------  ---------------  -------------  ------------------
<S>                                         <C>         <C>      <C>          <C>              <C>            <C>
DECEMBER 31, 2004                           10,965,090  $10,965  $ 1,749,878  $       11,721   $   (980,279)  $         792,285

Contributed services                                 -        -       73,751               -              -              73,751
Comprehensive loss for the year                      -        -            -         (13,947)             -             (13,947)
Net income for the year                              -        -            -               -        162,079             162,079

                                            ----------  -------  -----------  ---------------  -------------  ------------------
DECEMBER 31, 2005                           10,965,090   10,965    1,823,629          (2,226)      (818,200)          1,014,168
                                            ----------  -------  -----------  ---------------  -------------  ------------------

Contributed services                                 -        -        9,848               -              -               9,848
Comprehensive income (loss) for the period           -        -            -          12,338              -              12,338
Net income for the period                            -        -            -               -         90,745              90,745

                                            ----------  -------  -----------  ---------------  -------------  ------------------
MARCH 31,2006                               10,965,090  $10,965  $ 1,833,477  $       10,112   $   (727,455)  $       1,127,099
                                            ==========  =======  ===========  ===============  =============  ==================

--------------------------------------------------------------------------------------------------------------------------------
<FN>
                      The accompanying notes are an integral part of the consolidated financial statements
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
                                                                      VICTORIA INDUSTRIES, INC.
                                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                      (EXPRESSED IN US DOLLARS)
                                                                                      UNAUDITED
-----------------------------------------------------------------------------------------------

                                                                        FOR THE PERIODS ENDED
                                                                        MARCH 31,    MARCH 31,
                                                                          2006         2005
                                                                       -----------  -----------
<S>                                                                    <C>          <C>
CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES:
  Net income (loss) from continuing operations for the period          $   90,745   $  (11,872)
  Adjustments to reconcile net income (loss) from continuing
  operations to net cash in operating activities:
    Contributed services by shareholders                                    9,847       19,389
    Deferred tax expense (gain)                                               208      (11,236)
    Depreciation                                                              151           77

  Changes in current assets and liabilities:
    Net accrued interest (gain), net                                       (3,149)      (4,099)
    (Increase) in accounts receivable                                    (953,771)    (254,885)
    (Increase) decrease in prepaid expenses and other current assets      (21,731)      90,745
    (Increase) in inventories                                             (47,930)     (49,400)
    Decrease (increase) in VAT receivable and other taxes prepaids         11,904      (60,308)
    Increase in accounts payable                                          992,032      279,175
    Increase in taxes payable                                              12,591        5,986
    (Decrease) increase in other accounts payable                        (213,482)      28,619
    Increase in interest payable                                            4,566            -
                                                                       -----------  -----------
NET CASH FLOW FROM OPERATING ACTIVITY                                    (118,019)      32,191

CASH PROVIDED BY FINANCING ACTIVITIES:
  Short term loans received                                                 7,532            -
                                                                       -----------  -----------
NET CASH FLOW FROM FINANCING ACTIVITY                                       7,532            -

CASH USED IN INVESTING ACTIVITY:
  Related party promissory note repaid                                     68,922            -
                                                                       -----------  -----------
NET CASH FLOW FROM INVESTING ACTIVITY                                      68,922            -

Effect of exchange rate changes                                            12,450       (1,147)
                                                                       -----------  -----------

INCREASE (DECREASE) IN CASH:                                              (29,115)      31,044
CASH, AT THE BEGINNING OF THE PERIOD                                       32,301       14,752

                                                                       -----------  -----------
CASH, AT THE END OF THE PERIOD                                         $    3,186   $   45,796
                                                                       ===========  ===========
<FN>
     (1) Cash paid for income tax in the amount of $844 and $6,616 for the three
     months  ended  March  31,  2006  and  2005,  respectively.

     (2)  Cash paid in the amount of $5,550 and $None for the three months ended
     March  31,  2006  and  2005,  respectively.


      The accompanying notes are an integral part of the consolidated financial statements
</TABLE>


<PAGE>
     1.   NATURE  OF  BUSINESS


     Victoria  Industries,  Inc.  was incorporated on January 25, 2000 under the
     laws  of  the  State  of  Nevada.

     The  current  principal  activities  of  Victoria Industries, Inc. and its'
     subsidiaries  (collectively  referred  to as the "Company") as of March 31,
     2006  and  December  31,  2005  were  as  follows:

<TABLE>
<CAPTION>
     OPERATING ENTITY              PRINCIPAL ACTIVITY       COUNTRY OF    MARCH 31,   DECEMBER 31,
                                                           INCORPORATION     2006         2005
                                                                                CONTROL %
     -------------------------  -------------------------  -------------  ----------  -------------
<S>                             <C>                        <C>            <C>         <C>
     Victoria Industries, Inc.  Holding company            United States          -              -
                                                           of America

     Victoria Resources, Inc.   Marketing and              United States        100%           100%
                                distribution of forestry   of America
                                products

     Victoria Lumber, LLC       Marketing and              Russian              100%           100%
                                distribution of forestry   Federation
                                products

     Coptent Trading            Marketing and              Cyprus               100%           100%
     Limited                    distribution of forestry
                                products
</TABLE>

     The  principal executive office of the Company is situated at the following
     address:  551  Fifth  Avenue,  Suite  601,  New  York,  NY  10017, USA. The
     principal  operating  office  of  the  Company  is located at the following
     address:  2-B  Vitebskaya  Street,  Suite  1-A, 454080 Chelyabinsk, Russian
     Federation.

     The  number  of  employees of the Company as at March 31, 2006 and December
     31,  2005  amounted  to  9.

     The principal customers of the Company are based in Eastern Siberia and Far
     East  regions  of  Russia, and North provinces of China: Inner Mongolia and
     Heyluntszyan.

     GOING  CONCERN - These consolidated financial statements have been prepared
     on  a  going concern basis which assumes that adequate sources of financing
     will  be  obtained  as  required  and  that our assets will be realized and
     liabilities  settled in the ordinary course of business. Accordingly, these
     consolidated financial statements do not include any adjustments related to
     the  recoverability  of assets and classification of assets and liabilities
     that might be necessary should we be unable to continue as a going concern.

     In  order  to  continue as a going concern, the Company requires additional
     financing.  There  can  be  no  assurance that additional financing will be
     available  to  us  when needed or, if available, that it can be obtained on
     commercially  reasonable terms. If the Company is not able to continue as a
     going  concern,  it would likely be unable to realize the carrying value of
     the  Company's  assets reflected in the balances set out in the preparation
     of  consolidated  financial statements. While the company was profitable in
     2005  and  the first quarter of 2006, there is no assurance that the lumber
     business  that  the  Company  is involved in will generate sufficient funds
     that  will  be  available  for  operations.  The  Company's limited revenue
     history,  its  dependence  on  a  narrow


<PAGE>
     customer  base  and  limited  funding  raise  substantial  doubt  about the
     Company's  ability  to  continue  as  a  going  concern.

     Management  of  the  Company  plans to continue to recover its' losses that
     relates  to  prior  periods through extensive marketing policy and flexible
     shipment terms being offered to its new clients for 2006. However, there is
     no  assurance  these  policies  will  continue  to  be  successful.


2.   PRESENTATION  OF  FINANCIAL  STATEMENTS

     BASIS  OF  PRESENTATION  -  The consolidated financial statements have been
     prepared  in  accordance  with  the  requirements of Statement of Financial
     Accounting  Standards No. 52, "Foreign Currency Translation" (SFAS 52). The
     functional  currency  of our Cyprus subsidiary is U.S. Dollars. The Russian
     subsidiary  of  the  Company  maintains it is accounting records in Russian
     Rubles  in  accordance with the accounting and reporting regulations of the
     Russian  Federation. Russian statutory accounting principles and procedures
     differ  substantially  from  those  generally  accepted  under  US  GAAP.
     Accordingly,  the  consolidated  financial  statements,  which  have  been
     prepared  from  the Company's Russian statutory accounting records, reflect
     adjustments  necessary  for  such  financial  statements to be presented in
     accordance  with  US  GAAP.

     USE  OF ESTIMATES AND ASSUMPTIONS - The preparation of financial statements
     in  conformity  with  generally  accepted  accounting  principles  requires
     management  to  make  estimates  and  assumptions  that affect the reported
     amounts  of  assets and liabilities and disclosure of contingent assets and
     liabilities at the date of the financial statements and the reported amount
     of  revenues and expenses during the reporting period. Actual results could
     differ  from  those  estimates.

     FUNCTIONAL  AND REPORTING CURRENCY - The functional currency of the Company
     is  the  U.S. Dollar. Certain subsidiaries keep their financial records and
     transact  most  of  their  transactions in Russian Rubles, their functional
     currencies.  Their  financial  statements  have  been  translated into U.S.
     dollars using period end foreign exchange rates for assets and liabilities,
     average  foreign  exchange  rates  for  income  and expenses, and rates for
     common stock issuance that were in effect on the dates of the transactions.
     Translation  differences  from year to year resulting from varying exchange
     rates  are  reflected  in  other  comprehensive  income.  Remeasurement
     differences  from  settlements of transactions in currencies other than the
     functional  currency  are  reflected  in  the  statement  of  income.

     The  prevailing  exchange  rates as at March 31, 2006 and December 31, 2005
     were  approximately  1  U.S.  dollar  to  27.76  and  28.78 Russian rubles,
     respectively.  For  the  periods ended March 31, 2006 and 2005, the average
     exchange  rate  for  1U.S.  Dollar  was  28.16  and  27.84, Russian rubles,
     respectively.


<PAGE>
3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     BASIS  OF CONSOLIDATION - The consolidated financial statements incorporate
     the  financial  statements  of  Victoria  Industries,  Inc.  and  other
     enterprises,  where  the Company, directly or indirectly exercises control.
     Control is achieved where the Company has the power to govern the financial
     and  operating  policies of an invested enterprise so as to obtain benefits
     from  its  activities.

     Where  necessary,  adjustments  are  made  to  the  financial statements of
     subsidiaries  to  ensure  the accounting policies are consistently applied.

     All  significant  intercompany  transactions, balances and unrealized gains
     (losses)  on  transactions  are  eliminated  on  consolidation.

     REVENUE  RECOGNITION  -  For  revenue  from  product  sales,  the  Company
     recognizes  revenue  in  accordance  with SEC Staff Accounting Bulletin No.
     104,  "Revenue  Recognition  in  Financial  Statements ("SAB 104"). SAB 104
     requires  that  four  basic  criteria  must  be  met  before revenue can be
     recognized:  (1) persuasive evidence of an arrangement exists; (2) delivery
     has  occurred;  (3)  the  selling  price is fixed and determinable; and (4)
     collectibility  is  reasonably  assured.

     Criterion  (1)  is  met as every delivery is covered by a separate contract
     and  the  title  passes  to the customer only upon customer's acceptance at
     point  of  destination,  which  is  in  compliance  with  criterion  (2).
     Determination  of  criteria (3) and (4) are based on management's judgments
     regarding  the fixed nature of the selling prices of the products delivered
     and  the  collectibility  of  those  amounts.  Provisions for discounts and
     rebates  to  customers,  and other adjustments are provided for in the same
     period  the  related sales are recorded. The Company defers any revenue for
     which  the product has not been delivered and accepted by its customers. In
     accordance  with  the Company's standard contract terms, once delivered and
     accepted  the  product cannot be returned and no claims can be presented to
     the  Company.  The  Company  recognizes  revenue  on  gross  basis.

     PROPERTY,  PLANT AND EQUIPMENT - Property, plant and equipment is stated at
     cost.

     Depreciation  is  computed  under the straight-line method utilizing useful
     lives  of  the  assets,  which  are:


               Office  Equipment                   4 - 6 years
               Computer  Equipment                     3 years

     The  gain  or  loss  arising  on  the disposal or retirement of an asset is
     determined  as  the  difference between the sales proceeds and the carrying
     amount  of  the  asset  and  is  recognized  in  the  income  statement.

     LEASING  -  There were no assets held under capital leases. Operating lease
     expenses  are  written  of  in the profit and loss account in the period in
     which  they  are  incurred.

     INVENTORIES - Inventories are stated at the lower of cost or net realizable
     value.  Cost  comprises  direct cost of products purchased, customs duties,
     transportation  and  handling  costs. Cost is calculated using the specific
     identification  method.  Net  realizable  value  represents  the  estimated


<PAGE>
     selling  price  less  all  estimated  costs  to  completion and costs to be
     incurred  in  marketing,  selling  and  distribution.

     ACCOUNTS  RECEIVABLE  -  Accounts  receivable  are  stated  at  their  net
     realizable  value after deducting provisions for uncollectible amounts. The
     provision  for  uncollectable accounts is estimated based on credit history
     of  particular  customers.

     CASH  AND  CASH  EQUIVALENTS  -  Cash  include  petty cash and cash held on
     current bank accounts. Cash equivalents include short-term investments with
     a maturity of 3 months or less that are readily convertible to known amount
     of  cash  and  which are subject to insignificant risk of changes in value.

     LOANS  AND  OTHER  NON-BANK  BORROWINGS  -  All  loans  and  borrowings are
     initially  recorded  at  the  proceeds received, net of direct issue costs.
     After  initial  recognition  all  loans  and  borrowings  are  subsequently
     measured  at amortized cost, which is calculated by taking into account any
     discount  or  premium  on  settlement.

     VALUE ADDED TAX ON PURCHASES AND SALES - Value added taxes (VAT) related to
     sales  is  payable  to  tax authorities upon collection of receivables from
     customers.  Input  VAT  is  reclaimable  against sales VAT upon payment for
     purchases. The tax authorities permit the settlement of VAT on a net basis.
     VAT  related  to  sales  and  purchases  which have not been settled at the
     balance  sheet  date (VAT deferred) is recognized in the balance sheet on a
     gross  basis  and  disclosed  separately  as a current asset and liability.
     Where  provision  has  been made against debtors deemed to be uncollectible
     bad  debt expense is recorded for the gross amount of the debtor, including
     VAT.  The  related VAT deferred liability is maintained until the debtor is
     settled  or  until  the  debtor  is  written  off  for statutory accounting
     purposes.

     INCOME  TAXES  -  Income tax has been computed based on the results for the
     year  as  adjusted for items that are non-assessable or non-tax deductible.

     The  Company  has  adopted  Financial  Accounting  Standards No. 109 ("SFAS
     109"),  under  which  the  deferred  tax is accounted for using the balance
     sheet  liability  method  in  respect of temporary differences arising from
     differences  between  the  carrying amount of assets and liabilities in the
     financial  statements  and  the  corresponding  tax  basis  used  in  the
     computation  of  taxable  profit.  Deferred  tax  liabilities are generally
     recognized  for  all  taxable temporary differences and deferred tax assets
     are  recognized to the extent that it is probable that taxable profits will
     be  available  against  which  deductible  temporary  differences  can  be
     utilized.  Deferred  tax assets and liabilities are offset when they relate
     to  income  taxes  levied  by  the  same taxation authority and the Company
     intends  to  settle  its  tax  assets  and  liabilities  on  a  net  basis.

     Deferred  tax  is  calculated  at  rates  that are expected to apply to the
     period  when  the  asset  is  realized  or  the liability is settled. It is
     charged  or  credited  to  the  income statement, except when it relates to
     items  credited  or  charged directly to equity, in which case the Deferred
     tax  is  also  dealt  with  in  equity.

     FAIR  VALUE  OF FINANCIAL INSTRUMENTS - The Company's financial instruments
     consist  of  cash,  accounts  receivable,  short term loans given, accounts
     payable  and  accrued  liabilities  and  amounts  due  to directors. Unless
     otherwise noted, it is management's opinion that the Company is not exposed
     to  significant  interest,  currency  or  credit  risks  arising from these
     financial


<PAGE>
     instruments.  The  fair  value  of  financial instruments approximate their
     carrying  values  due  to  the  immediate  or  short term maturity of these
     financial  instruments.

     LOSS  PER  SHARE  -  Loss per share is computed in accordance with SFAS No.
     128,  "Earnings  Per Share". Basic loss per share is calculated by dividing
     the  net  loss  available  to  common  stockholders by the weighted average
     number  of  shares  outstanding during the year. Diluted earnings per share
     reflect  the  potential dilution of securities that could share in earnings
     of  an  entity.  In  a  loss  year,  dilutive  common equivalent shares are
     excluded  from  the  loss  per  share  calculation  as  the effect would be
     anti-dilutive.  Basic and diluted loss per share are the same for the years
     presented.

     COMPREHENSIVE  INCOME  -  Statement  of  SFAS 130, "Reporting Comprehensive
     Income,"  establishes  standards  for  reporting  and  displaying  of
     comprehensive  income,  its  components  and  accumulated  balances.
     Comprehensive  income  is  defined  to include all changes in equity except
     those  resulting  from  investments  by owners and distributions to owners.
     Among other disclosures, SFAS 130 requires that all items that are required
     to  be  recognized  under  current  accounting  standards  as components of
     comprehensive income be reported in a financial statement that is displayed
     with  the  same  prominence  as  other  financial  statements.

     RETIREMENT  BENEFIT COSTS - The operating entities of the Group situated in
     the  Russian Federation contribute to the state pension, medical and social
     insurance  and employment funds on behalf of all its current employees. Any
     related  expenses  are  recognized  in the income statement as incurred. No
     other  retirement  plans  have  been  established.

     SEGMENT  REPORTING  -  The Company's business operations are located in the
     Russian  Federation  and  relate primarily to marketing and distribution of
     forestry  products.  Therefore, business activities are subject to the same
     risks and returns and addressed in the consolidated financial statements of
     the  Company  as  one  reportable  segment.


     NEW  ACCOUNTING PRONOUNCEMENTS - In May 2005, the FASB issued SFAS No. 154,
     Accounting  Changes and Error Corrections. SFAS No. 154 replaces Accounting
     Principles  Board  Opinion  No.  20,  Accounting  changes,  and SFAS No. 3,
     Reporting  Accounting Changes in Internal Financial Statements, and changes
     the  requirements  for  the  accounting  for  and  reporting of a change in
     accounting  principle.  SFAS  No. 154 requires retrospective application of
     changes in accounting principle to the prior periods` financial statements,
     unless  it is impracticable to determine either the period-specific effects
     or  the  cumulative  effect  of  the  change. SFAS No. 154 is effective for
     accounting changes and corrections of errors made in fiscal years beginning
     after  December  15,  2005.  The  Company adopts SFAS No. 154 on January 1,
     2006.  Any  impact  on the Company's consolidated results of operations and
     earnings  per  share  will  be  dependent  on  the amount of any accounting
     changes  or  corrections  of  errors  whenever  recognized.

4.   FOUNDATION  AND  DISPOSAL  OF  SUBSIDIARIES

     VICTORIA RESOURCES, INC. - 100%

     In September 2003, the Company contributed $1,000 into the establishment of
     a  wholly-owned  subsidiary,  Victoria  Resources, Inc. in the State of New
     York  for  the  purpose  of  pursuing  opportunities in the lumber resource
     sector.


<PAGE>
     VICTORIA LUMBER, LLC - 100%

     In  December  2003  the  Company's  subsidiary,  Victoria  Resources, Inc.,
     contributed approximately $300,000 into the establishment of new 100% owned
     subsidiary,  Victoria Lumber, LLC, based in Chelyabinsk, Ural region of the
     Russian  Federation.

     Victoria  Lumber  LLC,  was  established in order to focus on marketing and
     distribution  of  high-value  added  forestry  products.

     COPTENT  TRADING  LTD  -  100%

     In  April  2004  the Group's subsidiary, Victoria Resources Inc contributed
     $10,095  into  the  establishment  of  new  100%  owned subsidiary, Coptent
     Trading Ltd., registered in Cyprus. The subsidiary was established in order
     to provide better marketing and administration functions of lumber sales on
     the  Chinese  market.


5.   ACCOUNTS  RECEIVABLE

     As  of March 31, 2006 and December 31, 2005 accounts receivable were mostly
     comprised  of  $2,551,612 and $1,387,924, respectively, receivable from Yun
     Chou  and  $145,583 and $342,288, respectively, receivable from Exintra for
     the  forestry  products sold. No provision was accrued as management of the
     company  considers  all  receivables  to  be  fully  collectible.


6.   RELATED  PARTY  RECEIVABLE

     In  August  2004  the  Company  decided  to  dispose of its shareholding in
     Siberian  Wood LLC. As of December 31, 2004 the Company signed an agreement
     with a related party TK Promtekhresurs to transfer its interest in exchange
     for  an  interest  free  note  of  $551,377,  and the Company believes this
     approximation  equals  to  what that could be negotiated with a third party
     based  on  arms-length  transaction  terms. The current balance of the note
     receivable  is  as  follows:

<TABLE>
<CAPTION>
                                   AT COST          AT NET PRESENT
                                                         VALUE
                                                       MARCH 31,
                                                         2006
                                   ---------------  ---------------
<S>                                <C>              <C>
               June 30, 2006       $        68,922           68,387
               September 30, 2006           68,922           67,856
               December 31, 2006            68,922           67,330
               March 31, 2007               68,922           66,808
                                   ---------------  ---------------
               CURRENT PORTION             275,688          270,381

               June 30, 2007                68,922           66,290
                                   ---------------  ---------------
               LONG TERM PORTION            68,922           66,290

                                   ---------------  ---------------
               TOTAL               $       344,610  $       336,671
                                   ===============  ===============
</TABLE>

     The  net  recovered  amount  of  the  investment  has  been  discounted
     approximately at 3%, the estimated cost of capital as of December 31, 2004.


<PAGE>
     As  of  March 31, 2006, the net discounted amount of $336,671 equals to the
     Company's  balance  of  amount  receivable in exchange of its` share in net
     assets of Siberian Wood LLC after redemption of three scheduled payments in
     the  amount  of  $206,766.


7.   TAXES  RECEIVABLE

     As  of  March 31, 2006 and December 31, 2005, taxes receivable consisted of
     VAT  receivable of $392,421 and $404,325, respectively, and were discounted
     at 15% annual rate based on average six months turnover period.


8.   INVENTORIES

     Inventories  as  of  March  31, 2006 and December 31, 2005 consisted of the
     following:

<TABLE>
<CAPTION>
                                3/31/2006   12/31/2005
                                ----------  ----------
<S>                             <C>         <C>
     Hardwood lumber            $   47,930           -
                                ----------  ----------
     TOTAL                      $   47,930           -
                                ==========  ==========
</TABLE>

     As  of  March  31, 2006 and December 31, 2005 hardwood lumber was valued at
     the  lower  of  specific  identification  cost  or  market.


9.   PREPAYMENTS  AND  OTHER  CURRENT  ASSETS


     As  of March 31, 2006 and December 31, 2005 prepayments consisted mainly of
     $137,738  and $118,573, respectively representing advances to the Company's
     payment  agent  in  order to purchase certain amounts of forestry products.


10.  INCOME  TAX

     The Company's provision for income tax for the periods ended March 31, 2006
     and  December  31,  2005  were  as  follows:

<TABLE>
<CAPTION>
                                            3/31/2006    12/31/2005

                                            ----------  ------------
<S>                                         <C>         <C>

     Current tax                            $   14,468  $    53,099
     Deferred tax (gain) expense                   208      (18,152)
                                            ----------  ------------
     TOTAL INCOME TAX CREDIT                $   14,676  $    34,947
                                            ==========  ============
</TABLE>

     Deferred taxes reflect the net tax effects of temporary differences, due to
     the  discounting  of VAT receivable, between the carrying amounts of assets
     and  liabilities  for financial reporting purposes and the amounts used for
     tax  purposes.

     The  change  for  the  periods in the Company's deferred tax position is as
     follows:


<PAGE>
<TABLE>
<CAPTION>
                                                  3/31/2006    12/31/2005

                                                 -----------  ------------
<S>                                              <C>          <C>

     Net (liability) asset  at the beginning of
     the period                                  $    6,957   $   (11,195)

     Charged to income (expense) for the period        (208)       18,152
                                                 -----------  ------------

     NET ASSET  AT THE END OF THE PERIOD         $    6,749   $     6,957
                                                 ===========  ============
</TABLE>

     The  tax  effect  on  the major temporary differences that give rise to the
     deferred tax assets as at March 31, 2006 and December 31, 2005 is presented
     below:

<TABLE>
<CAPTION>
                                               3/31/2006    12/31/2005

                                              -------------------------
<S>                                           <C>          <C>
     TEMPORARY DIFFERENCES THAT GIVE RISE TO
     DEFERRED TAX ASSETS
     Valuation of VAT receivable              $   28,251   $    29,265
                                              -------------------------
     TOTAL                                    $   28,251   $    29,265

     TEMPORARY DIFFERENCES THAT GIVE RISE TO
     DEFERRED TAX LIABILITIES                       (129)         (279)

                                              -------------------------
     NET DEFERRED TAX ASSET                   $   28,122   $    28,986
                                              =========================
</TABLE>

     The  deferred  tax  assets  as  at  March  31,  2006 and December 31, 2005,
     calculated at effective Russian income tax rate of 24%, is consisted of the
     following:

<TABLE>
<CAPTION>
                                     3/31/2006    12/31/2005

                                    -----------  ------------
<S>                                 <C>          <C>
     DEFERRED TAX ASSETS
       Valuation of VAT receivable  $    6,780   $     7,024
                                    -----------  ------------
     TOTAL                               6,780         7,024
     DEFERRED TAX LIABILITIES              (31)          (67)
                                    -----------  ------------
     NET DEFERRED TAX ASSET         $    6,749   $     6,957
                                    ===========  ============
</TABLE>

     The  taxation  charge  for  the  year is different from that which would be
     obtained  by  applying  the federal US statutory income tax rate to the net
     loss before income tax. Below is a reconciliation of theoretical income tax
     at  34%  to  the actual expense recorded in the Company's income statement:

<TABLE>
<CAPTION>
                                                3/31/2006    12/31/2005

                                               -----------  ------------
<S>                                            <C>          <C>
     Income (loss) before income tax and
     minority interest                         $  105,421   $   197,026
     Theoretical income tax at statutory rate      35,843        66,989
     Non deductible fair value compensation
     adjustment                                     3,348        25,075
                                                  (24,515)      (57,117)
                                               -----------  ------------
                                               $   14,676   $    34,947
                                               ===========  ============
</TABLE>

     At  March  31,  2006  and December 31, 2005 the Company had a net operating
     loss  carry forwards for purposes of US federal income tax of approximately
     $140,000 and $230,000.  No  deferred tax asset has been recorded because of
     the  uncertainty  of realization. The carry forward expires in periods from
     2022  to  2024.


<PAGE>
11.  PROPERTY,  PLANT  AND  EQUIPMENT

     Property,  plant  and  equipment as of March 31, 2006 and December 31, 2005
     consisted  of  the  following:

<TABLE>
<CAPTION>
                                     3/31/2006    12/31/2005

                                    -----------  ------------
<S>                                 <C>          <C>
          Computer equipment        $    2,164   $     2,087
          Accumulated Depreciation      (1,033)         (904)
                                    -----------  ------------
          NET BOOK VALUE            $    1,131   $     1,183
                                    ===========  ============
</TABLE>

12.  SHORT TERM BORROWINGS FROM RELATED PARTIES

     Borrowings  from  related  parties  of  $77,925  as  of  March 31, 2006 and
     December  31,  2005  were  composed  of

-    Advances  from  the shareholders as of March 31, 2006 and December 31, 2005
     in  the  amount  of  $62,925  represents  non-interest  bearing  borrowings
     repayable on demand to finance administration of the New York office of the
     Company.

-    Borrowings  from  the former directors outstanding as of March 31, 2006 and
     December  31,  2005 represented the outstanding balance of $15,000 of short
     term  loans  obtained during the year ended December 31, 2002 and repayable
     on  demand.


13.  SHORT  TERM  LOANS

     Short-term  loans  as  of  March  31,  2006  and  December 31, 2005 were as
     follows:

<TABLE>
<CAPTION>
                                              %,       3/31/2006   12/31/2005
                                           CURRENCY

                                         ------------  ----------  -----------
<S>                                      <C>           <C>         <C>
     Thor United Corporation                12%, US
                                            Dollars    $  200,640  $   200,640
     Sberbank-revolving credit facility  14%, Russian
                                             Rubles       180,115      173,732
     Sberbank -cash credit               16%, Russian
                                             Rubles        35,816       34,667
                                                       ----------  -----------

         TOTAL                                         $  416,571  $   409,039
                                                       ==========  ===========
</TABLE>

     The  short  term  loans  from Sberbank outstanding as of March 31, 2006 and
     December  31,  2005  were  secured  by the guarantees of several individual
     major  shareholders  and  officers  of  the company (See also Note 22). The
     credit  line facility is also secured by property owned by related parties.
     The  short  term  loan  obtained from Thor United Corporation is secured by
     Victoria Industries` common stock (See also Note 16). Proceeds of the loans
     were  used  mainly  for  immediate  working  capital  requirements.

     Interest  expense  for  the  three months ended March 31, 2006 and 2005 was
     accrued in the amount of $11,487 and $None, respectively and represents the
     weighted  average  interest  rate  of  pool  of  loans.


<PAGE>
14.  TAXES  PAYABLE

     Taxes  payable  as of March 31, 2006 and December 31, 2005 consisted of the
     following:

<TABLE>
<CAPTION>
                                          3/31/2006   12/31/2005

                                          ----------  -----------
<S>                                       <C>         <C>

          Income Tax- Coptent Trading     $   45,988  $    32,364
          Taxes withheld from employees          679          455
          Income Tax-Victoria  Lumber
            (Russian Federation)                   -        1,666
          Other taxes                            617            -
                                          ----------  -----------
          TOTAL                           $   47,284  $    34,485
                                          ==========  ===========
</TABLE>

15.  OTHER  CURRENT  LIABILITIES

     Other  accounts  payable  of $120,844 and $334,326 as of March 31, 2006 and
     December 31, 2005 were mostly comprised of $88,508 (2005: $314,821) payable
     to  Exintra  and  represents  amounts  of transportation, storage and other
     expenses  that  are  to  be  reimbursed  by  the Company in accordance with
     Commission  agreement.

16.  INTEREST  PAYABLE

     As  of March 31, 2006 and December 31, 2005 the amount of $6,926 and $2,360
     represents  balance of interest accrued on short term loans obtained by the
     Company  during  2005  (Note  13).


17.  COMMON  STOCK

     There  are 75,000,000 common shares authorized by the Company's Amended and
     Restated Certificate of Incorporation. There are 10,965,090 ordinary shares
     with  a par value of $0.001 US dollar issued and fully paid, outstanding as
     of  March  31,  2006  and  December  31,  2005.

     The  holders  of  ordinary  shares  have  voting rights but no guarantee of
     dividends.  Distributable  profits  are  determined on the basis of profits
     reported in statutory financial statements of the Company's entities. These
     profits  differ  from  profits  recorded  under  US  GAAP.

     No  dividends were declared or paid during the periods ended March 31, 2006
     and  December  31,  2005.

18.  RELATED  PARTIES

     Related  parties include shareholders, affiliates and entities under common
     ownership, over which the Company has the ability to exercise a significant
     influence.

     Transactions  with  related  parties  are  performed  on terms that may not
     necessarily  be  available  to  unrelated  parties.

     For  details of related party balances outstanding as of March 31, 2006 and
     December  31,  2005  see  Notes  4,  6  and  12.


<PAGE>
19.  COMMITMENTS  AND  CONTINGENCIES

     LEASE  COMMITMENTS  --  The  Company  leases office space on a year by year
     basis  and  its  outstanding  lease  commitments  as of March 31, 2006, are
     presented  as  follows:

<TABLE>
<CAPTION>
                                    2006
                                  -------

<S>                               <C>
               Office lease       $ 4,690
                                  -------
               TOTAL              $ 4,690
                                  =======
</TABLE>

     LITIGATION  - The Company has been and continues to be the subject of legal
     proceedings  and  adjudications  from  time to time, none of which has had,
     individually or in the aggregate, a material adverse impact on the Company.
     Management  believes  that  the resolution of all business matters will not
     have  a  material  impact  on the Company's financial position or operating
     results.

     RUSSIAN  FEDERATION  TAX AND REGULATORY ENVIRONMENT - The government of the
     Russian  Federation  continues  to  reform  the  business  and  commercial
     infrastructure  in its transition to a market economy. As a result laws and
     regulations  affecting businesses continue to change rapidly. These changes
     are characterized by poor drafting, different interpretations and arbitrary
     application  by  the authorities. In particular taxes are subject to review
     and investigation by a number of authorities enabled by law to impose fines
     and  penalties.  While  the Company believes it has provided adequately for
     all  tax liabilities based on its understanding of the tax legislation, the
     above  facts  may  create  tax  risks  for  the  Company.


20.  RISK  MANAGEMENT  POLICIES

     The  main  risks  inherent to the Company's operations are those related to
     credit  risk  exposures,  market movements in foreign exchange rates and in
     interest  rates. A description of the Company's risk management policies in
     relation  to  those  risks  are  as  follows.

     CREDIT  RISK - The Company is exposed to credit risk which is the risk that
     one  party  to  a financial instrument will fail to discharge an obligation
     and  cause  the  other  party  to  incur  a  financial  loss.

     The  Company  structures the levels of credit risk it undertakes by placing
     limits  on  the  amount  of  risk  accepted in relation to one customer, or
     groups  of  customers.  Limits  on the level of credit risk by customer are
     approved  by  the  Credit  Committee.

     CURRENCY  RISK  -  Currency risk is defined as the risk that the value of a
     financial  instrument  will  fluctuate  due  to changes in foreign exchange
     rates.

     The  Credit  Committee  sets  limits on the level of exposure by currencies
     (primarily  US  Dollar),  by  entities  and  in  total.

     CONCENTRATION  OF SALES - Sales in excess of 5% to any one customer for the
     periods  ended  March  31,  2006  and  2005  were  as  follows:


<PAGE>
<TABLE>
<CAPTION>
                                   3/31/2006   3/31/2005

                                   ----------  ----------
<S>                                <C>         <C>
     Yon Chou                      $2,406,788  $  594,204
     Exintra                           48,376           -
                                   ----------  ----------
     TOTAL                         $2,455,164  $  594,204
                                   ==========  ==========
</TABLE>

     Customers  are  Russian  and  Chinese  operating  companies  involved  in
     construction  and  lumber  trading.

     Our  main  suppliers in excess of 5% over the cost of goods sold during for
     the  periods  ended  March  31,  2006  and  2005  were  as  follows:

<TABLE>
<CAPTION>
                                  3/31/2006   3/31/2005

                                  ----------------------
<S>                               <C>         <C>
     Exintra                      $1,222,030  $  406,546
     Stroitransservice               879,984           -
                                  ----------------------
     TOTAL                        $2,102,014  $  406,546
                                  ======================
</TABLE>

     INTEREST  RATE  RISK  - Interest rate risk arises from the possibility that
     changes  in  interest  rates  will  affect  the  value  of  the  financial
     instruments.  Currently, the Group management approach to the interest risk
     limitation  is  borrowing  at  fixed  rates.


21.  CONCENTRATION  OF  BUSINESS  RISK

     The  Company's  business  activities  are  presently limited to the Russian
     Federation,  China,  Mongolia,  and  Cyprus. Laws and regulations affecting
     businesses  operating  in  the these countries are subject to rapid changes
     and  the  Company's  assets and operations could be at risk due to negative
     changes  in  the  political  and  business  environment.


22.  SUBSEQUENT  EVENTS

     During  April  2006  the Company repaid in full the balance due to Sberbank
     outstanding as of March 31, 2006 in the amount of $35,816 together with the
     respective  accrued  interest.


<PAGE>
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF PRINCIPAL CONDITION AND OPERATIONS

DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION
---------------------------------------------------


RESULTS OF OPERATIONS

Revenues  recognized  for  the periods ended March 31, 2006 and 2005 amounted to
$2,455,164 and $594,204, respectively. Cost of sales for the respective periods,
2006  and  2005,  consisted  mainly of purchased logs and transportation cost in
amounts  of  $2,102,014  and  $406,546,  respectively.

The significant increase in sales for the three months of 2006 was mostly due to
the  increased  volumes of birch, larch and pine in amounts of $2,147,608 (9,908
cubic  meters),  $241,704  (2,946 cubic meters), and $65,852 (974 cubic meters),
respectively.

Cost  of  sales  for the three month ended March 31, 2006 consisted primarily of
birch,  larch  and  pine purchase costs and transportation expenses amounting to
$1,894,780,  $142,391,  and  $64,843,  respectively.

Prices  for  our products are subject to volatility depending on seasonal demand
for  forestry  products and the relatively low gross margin in the first quarter
of  2006  was  a  result  of  unfavorable  market  conditions.

No  assurance can be given as  to  if and when we become an established supplier
and  as  to  whether  or  not this  would  allow us to sell at prevailing market
prices.  We  also  expect  to  secure better terms from our suppliers, which may
further  improve  our  gross  margin in the future.  There is no assurance as to
when  and  if  these  will  be  achieved.

Trade  accounts  receivable  as  of  March  31, 2006 and December 31, 2005, were
comprised  of amounts receivable for forestry products delivered to customers in
the  amount  of  $2,704,175  and $1,750,404. The significant increase in 2006 as
compared  to  2005  was  due to the increased volumes of forestry products sold.
Based  on  the  contracts  terms  with customers and on the Company's management
estimates  no  provision  for  the doubtful debt is required, as all outstanding
amounts  are  considered  to  be  recoverable.  Other  accounts  receivable  are
comprised mostly of prepayments for forestry products in the amounts of $137,738
and  $118,573,  respectively.

The  long  term  assets  of  the  Company  as of March 31, 2006 and December 31,
2005  were  represented  by the long term related party receivable and property,
plant  and  equipment  in  the  amounts  of  $66,290  (2005:$132,065) and $1,131
(2005:$1,183),  respectively. The current portion of related party receivable is
reflected  as  short  term  receivable  in  amount of $270,381 (2005: $270,381).

Current  liabilities  of  the Company as of March 31, 2006 and December 31, 2005
mainly  consisted of the trade payable in amount of $1,835,918 (2005: $843,886),
short  term borrowings from related parties of $77,925 (2005: $77,925) and other
accounts  payable  of  $120,844  (2005:  $334,326), respectively. Other accounts
payable are represented mostly by payable to Exintra, the Company's commissioner
for  logistic services that are reimbursed by the Company in accordance with the
terms  of  Commission agreement. There were no long term liabilities as of March
31,  2006  and  December  31,  2005.

During  the  periods  ended March 31, 2006 and 2005, we incurred total operating
expenses  of  $197,490  and  $204,123, respectively, consisting mainly of sales,
general  and  administrative


<PAGE>
expenses  of  $178,022  (2005:  $184,657), compensation expense of $9,848 (2005:
$19,389)  and  professional  fees  of  $9,469  (2005:  $none).

Compensation  expense  for  the periods ended March 31, 2006 and 2005 represents
the  imputed  value  of services provided by the Directors for which no fees are
due.  These  amounts  have  been  recorded  as additional capital contributions.

Sales,  general and administrative expenses for the periods ended March 31, 2006
and  2005  include transportation and transportation related costs ($134,440 and
$158,612,  respectively),  commission  ($6,455 and $7,175, respectively),  legal
and  professional  services ($9,797 and $216, respectively), payroll and related
taxes  ($9,156  and  $4,952),  as  well  as  rent  expenses  ($6,724 and $3,659,
respectively).  Decrease  in  transportation expenses incurred during the period
ended  March  31, 2006 was due to change in Coptent's delivery terms from EXW to
DAF  under  which  all  transportation  expenses  are  carried by a purchaser of
forestry  products.

Professional  fees expenses for the periods ended March 31, 2006 and 2005 mostly
consisted  of  audit fees of $8,921 and $none, and legal and filing fees of $548
and  $None,  respectively.  Professional  fees  were  required  to  maintain the
Company's  status  as  a  publicly  traded  company.

Depreciation  and  amortization expense for the periods ended March 31, 2006 and
2005  amounted  to  $151  and  $77,  respectively.

The continuation of the Company is dependent upon maintaining a profitable level
of operations, expanding the Company's business, continuing financial support of
creditors  and stockholders as well as obtaining long-term financing. Management
plans  to  raise  equity capital to finance the current cash requirements of the
Company.  Capital  raised  will  be  used  to expand current operations, finance
working  capital  and acquire fixed assets. While the Company is undertaking its
best  efforts  to  achieve  the above plans, there is no assurance that any such
activity will generate funds that will be sufficient to expand our operations or
maintain  their  current  level.  If  the  Company  is not successful in raising
financing the Company's expected business volumes may be revised down or may not
materialize  at  all.  Additionally,  the Company may lose its current business,
which may lead to significant curtailment or suspension of operations.


CAPITAL  EXPENDITURES

As  at  March  31,  2006  and  December  31,  2005  the  Company  did  not  have
significant  fixed  assets  as  it  operated  solely  as  a  trader  and  not  a
producer.

At  certain  stage  during  2006  we  may require to add certain fixed assets or
obtain  timberland  leases  to maintain and further grow our business. The fixed
assets  may  be  in  the  form  of  warehouse  space,  manufacturing facilities,
processing  machinery,  logging  machinery,  automotive  vehicles  and tractors,
chainsaws  and  other  equipment  used for logging and lumber processing. We may
also  elect to form new partnerships, invest into and/or acquire other companies
operating  in the same segment. In order to finance future capital expenditures,
we  may need to raise substantial funds. There is no assurance that the required
financing  will  be raised. Further, there is no assurance that the Company will
be  able to continue successfully in operating existence if the required Capital
expenditures  are  not  made.


<PAGE>
COMPETITION

We compete in a highly competitive industry that is open to new entrants without
significant  barriers  to  entry.  We  encounter  competition  in  all  of  our
operations,  including the acquisition of goods from suppliers and sale of these
goods  to  customers. Many of our competitors have financial and other Resources
substantially  greater  than  ours.


CASH REQUIREMENTS

The  Company anticipates it will require around $2,500,000 to sustain operations
and  develop  its subsidiaries over the next twelve months. The Company believes
it  will  be  able  to  raise  these  funds  through  equity and debt financing;
however,  there  is  no  guarantee  that  funds  will  be  raised.


LIQUIDITY AND CAPITAL RESOURCES

Since  inception,  the Company has financed its operations from private sources.
The  Company  began  operations  in  2003  and  2004  through  its'  subsidiary
businesses,  Victoria  Siberian  Wood,  Victoria Lumber and Coptent Trading Ltd.

In  the first quarter of 2006 we recognized a net profit of $90,745. As of March
31,  2006  the  Company had total current assets of $3,565,146 and total current
liabilities of $2,505,468. As of March 31, 2006, the Company had cash balance of
$3,186  and  a  working  Capital  surplus  of  $1,059,678,  respectively.

GOING  CONCERN

These  financial  statements  have  been prepared on a going concern basis which
assumes that adequate sources of financing will be obtained as required and that
our  assets  will  be realized and liabilities settled in the ordinary course of
business.  Accordingly,  these  consolidated financial statements do not include
any  adjustments  related  to the recoverability of assets and classification of
assets  and  liabilities that might be necessary should we be unable to continue
as  a  going concern. In order for us to continue as a going concern, we require
additional  financing.  There can be no assurance that additional financing will
be  available  to  us  when  needed or, if available, that it can be obtained on
commercially  reasonable  terms.  If  we  are  not  able  to continue as a going
concern,  we  would likely be unable to realize the carrying value of our assets
reflected  in  the  balances set out in the preparation of financial statements.
Although operations were profitable in 2005 and the first quarter of 2006, there
continues  to  be  substantial  doubt  about  our ability to continue as a going
concern  as  we  are  just  commencing  operations  and  have  no assurance that
profitable  operations  will  continue.  Accordingly,  our  independent auditors
included  an  explanatory  paragraph  in  their  report on the December 31, 2005
financial statements regarding concerns about our ability to continue as a going
concern. Our financial statements contain additional note disclosures describing
the  circumstances  that  lead  to  this disclosure by our independent auditors.

CASHFLOW

Cash  (used in) provided by operating activities for the periods ended March 31,
2006 and 2005 amounted to $(118,019) and $32,191, respectively. Cash outflow for
the  period  ended  March 31, 2006 was primarily caused by the increase in trade
accounts  receivable of $953,771 (2005: $254,885), inventories of $47,930 (2005:
$49,400),  in  prepaid  expenses  and  other  current  assets  of $21,731 (2005:
decrease  of  $90,745) as well as decrease in other accounts payable of $213,482
(2005:  increase  of  $28,619).  The  aggregate outflow exceeded the cash inflow
resulting  from  the  increase in accounts payable of $992,032 (2005: $279,175).


<PAGE>
Cash  provided by financing activities during  three months ended March 31, 2006
and 2005 was due to short term loans received in amount of $7,532 (2005: $None).

In  the  first  quarter  2006  cash  provided by investing activities was due to
repayment of related party note receivable in amount of $68,922.

INCOME TAXES, NET OPERATING LOSSES AND TAX CREDITS

Currently,  the  Company is liable for the Russian income tax at the rate of 24%
of  the  pre-tax earnings as defined by the Russian income tax law. The taxation
system  in Russia is evolving as the central government transforms itself from a
command  to  a  market-oriented economy. Based on current tax law and the United
States-Russia  income  tax  treaty,  the  income  tax  paid  in  Russia  will be
a  creditable  tax  when  determining  the Company's US income taxes payable, if
any.


APPLICATION OF CRITICAL ACCOUNTING POLICIES


USE OF ESTIMATES

The  preparation  of  financial  statements  in  accordance  with  United States
generally  accepted  accounting principles requires management to make estimates
and  assumptions  that affect the reported amounts of assets and liabilities and
disclosures  of  contingent  assets and liabilities at the date of the financial
statements  and  the  reported  amounts  of  revenues  and  expenses  during the
reporting  period.  Actual results could materially differ from these estimates.

REVENUE  RECOGNITION

For  revenue  from  product  sales, the Company recognizes revenue in accordance
with  SEC  Staff Accounting Bulletin No.  104, "Revenue Recognition in Financial
Statements"  ("SAB  104"). SAB 104 requires that four basic criteria must be met
before  revenue  can  be  recognized:  (1) persuasive evidence of an arrangement
exists;  (2)  delivery  has  occurred;  (3)  the  selling  price  is  fixed  and
determinable;  and  (4)  collectibility  is  reasonably  assured.

Criterion (1) is met as every delivery is covered by a separate contract and the
title  passes  to  the  customer  only  upon  customer's  acceptance at point of
destination,  which  is  in  compliance  with  criterion  (2).  Determination of
criteria  (3)  and  (4)  are based on management's judgments regarding the fixed
nature of the selling prices of the products delivered and the collectibility of
those  amounts.  Provisions  for  discounts  and rebates to customers, and other
adjustments  are provided for in the same period the related sales are recorded.
The  Company defers any revenue for which the product has not been delivered and
accepted  by  its  customers. In accordance with the Company's standard contract
terms,  once delivered and accepted the product cannot be returned and no claims
can  be presented to the Company. The Company recognizes revenue on gross basis.


<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Much of the information included in this annual report includes or is based upon
estimates,  projections  or  other  forward  looking  statements".  Such forward
looking  statements  include  any  projections  or  estimates made by us and our
management  in  connection  with  our  business  operations.  While  these
forward-looking  statements,  and any assumptions upon which they are based, are
made  in  good faith and reflect our current judgment regarding the direction of
our business, actual results will almost always vary, sometimes materially, from
any estimates, predictions, projections, assumptions or other future performance
suggested  herein.

Such  estimates,  projections  or  other  "forward  looking  statements" involve
various  risks  and  uncertainties as outlined below. We caution the reader that
important  factors  in  some  cases  have  affected  and,  in  the future, could
materially  affect  actual results and cause actual results to differ materially
from  the results expressed in any such estimates, projections or other "forward
looking  statements".

Our  common  shares  are  considered  speculative  during  our  search for a new
business  opportunity.  Prospective investors should consider carefully the risk
factors  set  out  below

LIMITED OPERATING HISTORY; ANTICIPATED LOSSES; UNCERTAINTY OF FUTURE RESULTS

The  Company  has  a  limited  operating history upon which an evaluation of its
prospects  can  be  made.  There  can  be  no  assurance  that  the Company will
effectively  execute  its business plan or manage any growth of the business, or
that  the  Company's future operating and financial forecast will be met. Future
development  and operating results will depend on many factors, including access
to adequate capital, the demand for the Company's products, the level of product
and  price  competition,  the  Company's  success  in  setting  up and expanding
distribution  channels, and whether the Company can control costs. Many of these
factors are beyond the control of the Company. In addition, the Company's future
prospects  must  be considered in light of the risks, expenses, and difficulties
frequently  encountered  in  establishing  a new business in the forest products
industry,  which  is  characterized  by intense competition, rapid technological
change,  highly  litigious  competitors  and  significant  regulation.


LIMITED  PUBLIC  MARKET

The  Company's  Common  Stock is currently quoted on the NASD OTC Bulletin Board
under  the  ticker  symbol  VIIN.  As  of  May 12, 2006 there were approximately
10,965,090  shares of Common Stock outstanding. There can be no assurance that a
trading market will be sustained in the future. Factors such as, but not limited
to, technological innovations, new products, acquisitions or strategic alliances
entered  into  by  the  Company  or  its  competitors,  failure to meet security
analysts'  expectations,  government  regulatory  action,  proprietary  rights
developments,  and market conditions for lumber products in general could have a
material  effect  on  the  volatility  of  the  Company's  stock  price.


POLITICAL  RISKS

The markets in Russia, China and Mongolia are monitored by the government, which
could  impose  taxes  or  restrictions  at  any time which would make operations
unprofitable  and  infeasible  and  cause  a  write-off of capital investment in
lumber  opportunities.


<PAGE>
A number of factors, beyond the Company's control and the effect of which cannot
be  accurately  predicted  may  affect  the  marketing  of  the Company's lumber
operations.  These  factors  include  political  policy  on  foreign  ownership,
political policy to open the doors to foreign investors, and political policy on
lumber  exports.


RISKS  ASSOCIATED  WITH  INTERNATIONAL  MARKETS

Commencing  in  2004 Company started trading to China. The future success of the
Company  will  depend  in part on its ability to generate sales on international
markets. There can be no assurance, however, that the Company will be successful
in  generating  these  sales.  In addition, these will be subject to a number of
risks,  including:  foreign  currency  risk;  the  risks  that agreements may be
difficult  or impossible to enforce and receivables difficult to collect through
a  foreign  country's  legal  system;  foreign customers may have longer payment
cycles; or foreign countries could impose withholding taxes or otherwise tax the
Company's  foreign  income,  impose tariffs, embargoes, or exchange controls, or
adopt  other  restrictions  on  foreign  trade. In addition, the laws of certain
countries  do not protect the Company's offerings to the same extent as the laws
of  the  United  States.

Although  none  of  our  present  officers or directors is key to our continuing
operations, we rely upon the continued service and performance of these officers
and  directors, and our future success depends on the retention of these people,
whose knowledge of our business and whose technical expertise would be difficult
to  replace.  At  this  time,  none  of  our  officers or directors are bound by
employment  agreements,  and as a result, any of them could leave with little or
no  prior  notice.

Competition for qualified individuals is likely to be intense, and we may not be
able  to attract, assimilate, or retain additional highly qualified personnel in
the  future.  The  failure  to  attract,  integrate,  motivate  and retain these
employees  could  harm  our  business.

LACK OF DIVERSIFICATION

The  Company  is  currently  exclusively  in  the  business of trading in forest
products.  This lack of diversification into a number of areas may subject us to
economic  fluctuations  within  the forest products industry, thereby increasing
the  risks  associated  with  our  operations.


REGULATION

Although  we  will be subject to regulation under the Securities Exchange Act of
1934,  management  believes  that we will not be subject to regulation under the
Investment  Company  Act  of  1940,  insofar  as  we  will not be engaged in the
business  of  investing or trading in securities. In the event that we engage in
business combinations which result in us holding passive investment interests in
a  number  of  entities,  we could be subject to regulation under the Investment
Company  Act  of  1940,  meaning  that  we  would  be required to register as an
investment  company  and could be expected to incur significant registration and
compliance  costs.  We have obtained no formal determination from the Securities
and  Exchange  Commission  as  to the status of our company under the Investment
Company  Act  of 1940 and, consequently, any violation of such act would subject
us  to  material  adverse  consequences.


<PAGE>
EXPOSURE  TO  NATURAL  DISASTERS


The  forest products industry is subject to natural events such as forest fires,
adverse  weather  conditions,  insect  infestation,  disease  and  other natural
disasters.  The  occurrence  of  any  of these events could adversely affect our
ability  to  trade  in  forest products which would result in a material adverse
consequence  to  the  Company.

EXPOSURE TO FOREIGN EXCHANGE RATE FLUCTUATIONS

The  majority  of  our operations being located in the Russian Federation, China
and  Mongolia,  and  the  majority  of  our expenses were denominated in Russian
rubles.  We  currently  do  not  and do not plan in the near future to engage in
hedging our exposure to changing foreign exchange rates. Any unfavorable changes
in  the  relevant  foreign  exchange  rates  may  have  a material effect on our
financials  and  performance.


"PENNY STOCK" RULES MAY RESTRICT THE MARKET FOR THE COMPANY'S SHARES

Our  common  shares  are  subject  to  rules  promulgated  by the Securities and
Exchange  Commission  relating to "penny stocks," which apply to companies whose
shares  are  not  traded  on  a national stock exchange or on the NASDAQ system,
trade  at  less than $5.00 per share, or who do not meet certain other financial
requirements  specified  by  the Securities and Exchange Commission. These rules
require  brokers  who  sell  "penny  stocks"  to  persons other than established
customers  and  "accredited  investors"  to complete certain documentation, make
suitability  inquiries  of  investors,  and  provide  investors  with  certain
information  concerning  the  risks of trading in such penny stocks. These rules
may  discourage or restrict the ability of brokers to sell our common shares and
may  affect  the  secondary market for our common shares. These rules could also
hamper  our  ability to raise funds in the primary market for our common shares.


POSSIBLE VOLATILITY OF SHARE PRICES

Our  common  shares are currently quoted on the Pink Sheets service. The trading
price  of  our  common  shares  has  been  subject to wide fluctuations. Trading
prices  of  our  common shares may fluctuate in response to a number of factors,
many  of  which  will  be  beyond  our  control.  The stock market has generally
experienced extreme price and volume fluctuations that have often been unrelated
or  disproportionate  to  the operating performance of companies with no current
business  operation.  There  can  be  no assurance that trading prices and price
earnings  ratios  previously experienced by our common shares will be matched or
maintained.  These  broad  market  and industry factors may adversely affect the
market price of our common shares, regardless of our operating performance.

In  the past, following periods of volatility in the market price of a company's
securities,  securities  class-action litigation has often been instituted. Such
litigation,  if  instituted,  could  result  in  substantial  costs for us and a
diversion  of  management's  attention  and  resources.


INDEMNIFICATION OF DIRECTORS, OFFICERS AND OTHERS

Our  by-laws  contain  provisions  with  respect  to  the indemnification of our
officers  and  directors  against  all  expenses (including, without limitation,
attorneys'  fees,  judgments, fines, settlements, and other amounts actually and
reasonably  incurred  in  connection  with  any  proceeding  arising  by


<PAGE>
reason of the fact that the person is one of our officers or directors) incurred
by  an  officer  or  director  in  defending  any such proceeding to the maximum
extent  permitted  by  Nevada  law.

Insofar  as  indemnification for liabilities arising under the Securities Act of
1933  may  be  permitted  to  directors, officers and controlling persons of our
company  under  Nevada law or otherwise, we have been advised the opinion of the
Securities  and  Exchange  Commission  is  that  such indemnification is against
public  policy  as  expressed  in  the Securities Act of 1933 and is, therefore,
unenforceable.


FUTURE  DILUTION

Our statutory documents authorize the issuance of 75,000,000 common shares, each
with  a  par  value  of  $0.001.  In the event that we are required to issue any
additional  shares  or  enter into private placements to raise financing through
the  sale  of  equity  securities,  investors'  interests in our Company will be
diluted  and  investors  may  suffer  dilution in their net book value per share
depending  on  the  price  at  which  such  securities are sold. If we issue any
such  Additional  shares,  such  issuances  also  will  cause a reduction in the
proportionate ownership and voting power of all other shareholders. Further, any
such issuance may result in a change in our control.

ANTI-TAKEOVER  PROVISIONS

We  do  not  currently  have  a  shareholder  rights  plan  or any anti-takeover
provisions  in  our  By-laws.  Without any anti-takeover provisions, there is no
deterrent  for  a  take-over of our Company, which may result in a change in our
management  and  directors.


REPORTS  TO  SECURITY  HOLDERS

Under  the  securities  laws of Nevada, we are not required to deliver an annual
report  to  our  shareholders  but  we  intend  to  send an annual report to our
shareholders.

ITEM  4.  CONTROLS  AND  PROCEDURES

The  registrant's  Principal executive officers and principal financial officer,
based on their evaluation of the registrant's disclosure controls and procedures
(as  defined in Rules 13a-14   (c) of the Securities Exchange Act of 1934) as of
March  31,  2006  have  concluded that the registrants' disclosure controls  and
procedures  are  adequate  and  effective  to  ensure  that material information
relating  to  the  registrants  and their consolidated subsidiaries is recorded,
processed  ,  summarized  and reported within the time periods specified by  the
SEC'  s  rules  and  forms,  particularly during the period in which this annual
report  has  been  prepared.

The  registrants'  principal  executive officers and principal financial officer
have  concluded  that  there  were  no  significant  changes in the registrants'
internal  controls  or  in  other  factors that could significantly affect these
controls  as  of  the  end  of  the  period covered by this report based on such
evaluation,  and  that  there  was  no  significant  deficiencies  or  material
weaknesses  in  the  registrant's  internal  controls.


<PAGE>
PART II.

ITEM 1. LEGAL PROCEEDINGS

We  know of no material, active or pending legal proceedings against us, nor are
we  involved  as  a plaintiff in any material proceedings or pending litigation.
There  are no proceedings in which any of our directors, officers or affiliates,
or  any  registered  or  beneficial  shareholders are an adverse party or have a
material  interest  adverse  to  us.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

REPORTS  ON  FORM  8-K
A  current  report  on  Form 8K/A Item 4.01: Changes in the Company's Certifying
Accountants and Item 9.01 Financial statements and Exhibits was filed on June 9,
2005.

The  following  Consolidated  Financial  Statements  pertaining  to  Victoria
Industries  are  filed  as  part  of  this  quarterly  report:

Consolidated  Balance  Sheets  as  of  March  31,  2006  and  December  31, 2005

Consolidated Statements of Changes in Stockholders' Equity (Capital Deficit) for
the  periods  ended  March  31,  2006  and  December  31,  2005.

Consolidated  Statements  of  Operations  and  Comprehensive  Loss for the three
months  ended  March  31,  2006  and  2005

Consolidated  Statements of Cash Flows for the three months ended March 31, 2006
and  2005

Notes  to the Consolidated Financial Statements for the three months ended March
31,  2006  and  the  year  ended  December  31,  2005.


<PAGE>
EXIBITS  REQUIRED  BY  ITEM  601  OF  REGULATION  S-B

Articles of Incorporation and Corporate Charter of the Registrant* (incorporated
by  reference  from our Registration Statement on Form 10-SB filed on October 4,
2000)

By-laws  of  the  Registrant*  (incorporated  by reference from our Registration
Statement  on  Form  10-SB  filed  on  October  4,  2000)

Exhibit 31.1 - Section 302 Certification
Exhibit 31.2 - Section 302 Certification
Exhibit 32.1 - Section 906 Certification
Exhibit 32.2 - Section 906 Certification


* Previously filed as an exhibit to the Company's Form 10-SB filed on October 4,
2000


*  CERTAIN  PARTS  OF  THIS DOCUMENT HAVE NOT BEEN DISCLOSED AND HAVE BEEN FILED
SEPARATELY  WITH  THE  SECRETARY,  SECURITIES  AND  EXCHANGE  COMMISSION, AND IS
SUBJECT  TO  A  CONFIDENTIAL  TREATMENT  REQUEST  PURSUANT  TO RULE 24B-2 OF THE
SECURITIES  ACT  OF  1934.


SUBSIDIARIES:

As at March 31, 2006 and December 31, 2005

Victoria  Resources  Inc.
Victoria  Lumber  LLC
Coptent  Trading  Ltd



SIGNATURES

In  accordance  with the requirements of the Exchange Act, the registrant caused
this  report  to  be  signed  on  its  behalf by the undersigned, thereunto duly
authorized.

Date: May 12, 2006                    Victoria Industries, Inc.


                                      /s/ Albert Abdoulline
                                      --------------------------------
                                      Albert  Abdoulline
                                      President