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 NINE MONTHS ENDED
                               SEPTEMBER 30, 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 2020
              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 Bulleting 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
SEC 2337 (12-05)  FORM DISPLAYS A 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 Hem 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]

Issuer's revenues for its most recent fiscal year:    $5,353,013


<PAGE>
State the aggregate market value of the voting and non-voting common equity held
by  non-affiliates computed by reference to the price at which the common equity
was  sold, or the average bid and asked price of such equity, as of November 13,
2006  within  past  60  days:  $916,513

State the number of shares outstanding of each of the issuer's classes of common
equity, as of November 13, 2006:

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

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


<PAGE>
VICTORIA  INDUSTRIES,  INC.

FORM 10-QSB

<TABLE>
<CAPTION>
                                                             TABLE OF CONTENTS

<S>         <C>                                                                                                           <C>
PART I.     FINANCIAL INFORMATION                                                                                         Page
                                                                                                                          ----

Item 1.     Financial Statements (unaudited)

            Consolidated Balance Sheets - September 30, 2006 and December 31, 2005

            Consolidated Statements of Operations and Comprehensive Income (Loss) - for the three and nine months
            ended September 30, 2006 and 2005

            Consolidated Statements of Changes in Stockholder's Equity (Capital Deficit) - September 30, 2006 and
            December 31, 2005

            Consolidated Statements of Cash Flows - for the nine months ended September 30, 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)

--------------------------------------------------------------------------------------------------------------
                                                                                SEPTEMBER 30,
                                                                                    2006         DECEMBER 31,
                                                                                 (UNAUDITED)         2005
                                                                               ---------------  --------------
<S>                                                                            <C>              <C>
ASSETS

CURRENT ASSETS
  Cash and cash equivalents                                                    $      346,026   $      32,301
  Accounts receivable                                                               2,307,856       1,750,404
  Related party receivable - current portion                                          203,575         270,381
  Taxes receivable                                                                    290,890         404,325
  Inventories                                                                               -               -
  Prepayments and other current assets                                                 65,059         118,573
  Deferred interest expense                                                            32,965               -
  Deferred tax asset                                                                    5,010           6,957

                                                                               ---------------  --------------
    Total current assets                                                            3,251,381       2,582,941

Property, plant and equipment, net                                                        862           1,183
Related party receivable - long term portion                                                -         132,065

                                                                               ---------------  --------------
TOTAL ASSETS                                                                   $    3,252,243   $   2,716,189
                                                                               ===============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Short term borrowings from related parties                                   $       77,925   $      77,925
  Short term bank loans                                                               394,746         409,039
  Accounts payable                                                                  1,206,787         843,886
  Taxes payable                                                                         1,338          34,485
  Other current liabilities                                                           313,826         334,326
  Interest payable                                                                          -           2,360

                                                                               ---------------  --------------
    Total current liabilities                                                       1,994,622       1,702,021

Commitments and Contingencies (Note 20)                                                     -               -


STOCKHOLDERS' EQUITY
  Common stock, $0.001 par value, 10,965,090 shares issued and outstanding             10,965          10,965
  as of September 30, 2006 and December 31, 2005
  Additional paid-in capital                                                        1,852,771       1,823,629
  Accumulated (deficit )                                                             (513,632)       (818,200)
  Accumulated other comprehensive (loss) - foreign currency                           (92,483)         (2,226)

                                                                               ---------------  --------------
Total stockholders' equity                                                          1,257,621       1,014,168

                                                                               ---------------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                     $    3,252,243   $   2,716,189
                                                                               ===============  ==============
</TABLE>

        The accompanying notes are an integral part of the consolidated
                              financial statements


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

---------------------------------------------------------------------------------------------------------------
                                               FOR THE THREE MONTHS ENDED         FOR THE NINE MONTHS ENDED
                                              SEPTEMBER 30,    SEPTEMBER 30,    SEPTEMBER 30,    SEPTEMBER 30,
                                                  2006             2005             2006             2005
                                             ---------------  ---------------  ---------------  ---------------
<S>                                          <C>              <C>              <C>              <C>
REVENUES                                     $    1,461,181   $    1,223,294   $    6,303,206   $    3,034,284

COST OF SALES                                    (1,141,704)        (999,721)      (5,265,283)      (2,426,132)
                                             ---------------  ---------------  ---------------  ---------------

GROSS PROFIT                                        319,477          223,573        1,037,923          608,152

OPERATING EXPENSES
Sales, general and administrative                  (193,580)        (133,823)        (580,207)        (416,257)
Compensation                                         (9,634)         (19,476)         (29,142)         (58,282)
Professional fees                                   (24,250)         (62,372)         (67,512)         (62,372)
Depreciation and amortization                          (163)            (225)            (475)            (225)
                                             ---------------  ---------------  ---------------  ---------------

OPERATING INCOME                                     91,850            7,677          360,587           71,016

OTHER INCOME (EXPENSE)
Interest income                                       6,703            4,165           16,450           12,397
Interest expense                                     (7,578)          (1,807)         (31,286)          (1,807)
Foreign exchange loss                               (20,387)           4,530          (71,263)         (27,006)
Other expense, net                                        -           (4,024)               -           (4,024)
                                             ---------------  ---------------  ---------------  ---------------

INCOME BEFORE TAX                                    70,588           10,541          274,488           50,576

FOREIGN INCOME TAX                                   33,659           (7,884)          30,080          (15,852)
                                             ---------------  ---------------  ---------------  ---------------

NET INCOME                                          104,247            2,657          304,568           34,724

Other comprehensive (loss)
  Foreign currency translation  (loss)              (12,681)           1,952          (90,257)         (10,218)
                                             ---------------  ---------------  ---------------  ---------------

COMPREHENSIVE INCOME (LOSS)                  $       91,566   $        4,609   $      214,311   $       24,506
                                             ===============  ===============  ===============  ===============

BASIC INCOME PER SHARE
  From Continuing operations                 $         0.01   $         0.00   $         0.02   $         0.00
WEIGHTED AVERAGE COMMON
  SHARES OUTSTANDING                             10,965,090       10,965,090       10,965,090       10,965,090
</TABLE>

        The accompanying notes are an integral part of the consolidated
                              financial statements


<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      (DEFICIT)         OTHER         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  $   (980,279)  $       11,721   $         792,285

Contributed services                                -         -       73,751             -                -              73,751
Other 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      (818,200)          (2,226)          1,014,168

Contributed services                                -         -       29,142             -                -              29,142
Other comprehensive (loss) for the period           -         -            -             -          (90,257)            (90,257)
Net income for the period                           -         -            -       304,568                -             304,568

                                           ----------  --------  -----------  -------------  ---------------  ------------------
SEPTEMBER 30, 2006                         10,965,090  $ 10,965  $ 1,852,771  $   (513,632)  $      (92,483)  $       1,257,621
                                           ==========  ========  ===========  =============  ===============  ==================

--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

        The accompanying notes are an integral part of the consolidated
                              financial statements


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

-------------------------------------------------------------------------------------------------------
                                                                          FOR THE NINE MONTHS ENDED
                                                                        SEPTEMBER 30,    SEPTEMBER 30,
                                                                            2006             2005
                                                                       ---------------  ---------------
<S>                                                                    <C>              <C>
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES:
    Net income                                                         $      304,568   $       34,724
    Adjustments due to reconcile net income from
    operations to net cash in operating activities:
      Contributed services by shareholders                                     29,142           58,282
      Deferred tax expense (gain)                                               1,947          (15,505)
      Net imputed interest (income)                                           (16,450)         (12,397)
      Depreciation                                                                475              225

    Changes in current assets and liabilities:
      (Increase) in accounts receivable                                      (557,452)        (347,083)
      Decrease in prepaid expenses and other current assets                    53,514          (47,854)
      (Increase) in inventories                                                     -         (225,718)
      Decrease (increase) in VAT receivable and other taxes prepaids          121,987         (208,835)
      Increase in accounts payable                                            362,901          662,434
      Increase in taxes payable                                               (33,147)          18,967
      Increase (decrease) in other accounts payable                           (20,500)         (18,012)
      Change in interest payable                                              (35,325)
                                                                       ---------------  ---------------
  NET CASH FLOW FROM OPERATING ACTIVITIES                                     211,660         (100,772)

CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES:
    Short term loans received                                                 335,000           34,407
    Short term loans repaid                                                  (349,293)               -
    Related party promissory note repaid                                      206,768           68,922
                                                                       ---------------  ---------------
  NET CASH FLOW FROM FINANCING ACTIVITIES                                     192,475          103,329

CASH PROVIDED BY INVESTING ACTIVITIES:

    Purchase of property, plant and equipment                                       -             (884)
                                                                       ---------------  ---------------
  NET CASH FLOW FROM INVESTING ACTIVITIES                                           -             (884)

EFFECT OF FOREIGN EXCHANGE TRANSLATIO RATE CHANGES                            (90,410)         (10,218)
                                                                       ---------------  ---------------

(DECREASE) INCREASE IN CASH:                                                  313,725           (8,545)
CASH, AT THE BEGINNING OF THE PERIOD                                           32,301           14,752

                                                                       ---------------  ---------------
CASH, AT THE END OF THE PERIOD                                         $      346,026   $        6,207
                                                                       ===============  ===============
</TABLE>

     (1) Cash paid for income tax in the amount of $4,725 and $13,723 for the
     nine months ended September 30, 2006 and 2005, respectively.
     (2) Cash paid for interest in the amount of $31,286 and $1,807 for the nine
     months ended September 30, 2006 and 2005, respectively.


        The accompanying notes are an integral part of the consolidated
                              financial statements


<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 September
     30,  2006  and  December  31,  2005  were  as  follows:

<TABLE>
<CAPTION>
        OPERATING ENTITY           PRINCIPAL ACTIVITY      COUNTRY OF    SEPTEMBER 30,   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 Limited    Marketing and             Cyprus                   100%           100%
                                distribution of forestry
                                products
</TABLE>

     The  principal  executive  office  of  the  Company  is  situated  at  the
     following  address:  551 Fifth Avenue, Suite 2020, 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  Company's  web  site  is  www.victoriaind.com.

     The  number  of  fulltime  employees  of  the  Company  as at September 30,
     2006  and  December  31,  2005  amounted  to  9.

     The  principal  customers  of  the  Company  are  based  in Eastern Siberia
     and the Far East regions of Russia, and the 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  nine  months  period  of  2006, there is no
     assurance  that  the  lumber  business that the Company is involved in will
     generate  sufficient  funds  that  will  be


<PAGE>
     available  for  operations.  The  Company's  limited  revenue history, high
     concentration  of  credit risk in consequence of its dependence on a single
     major  customer  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  its  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.

     The  accompanying  unaudited  condensed  consolidated  financial statements
     have  been  prepared  in accordance with U.S. generally accepted accounting
     principles  ("GAAP")  for  interim  financial  information  and  with  the
     instructions  to  Form  10-QSB. Accordingly, they do not include all of the
     information  and  footnotes  required  by  GAAP  for  complete  financial
     statements.  In  the  opinion of management, all adjustments (consisting of
     normal  recurring adjustments) considered necessary for a fair presentation
     have  been  included.  Operating  results  for the nine months period ended
     September  30,  2006 are not indicative of the results that may be expected
     for  the  year  ending  December  31,  2006.

     As  contemplated  by  the  Securities  and  Exchange Commission (SEC) under
     Rules  of Regulation S-B, the accompanying financial statements and related
     footnotes  have  been condensed and do not contain certain information that
     will be included in the Company's annual financial statements and footnotes
     thereto.  For  further  information,  refer  to  the  Company's  audited
     consolidated financial statements and related footnotes thereto included in
     the  Company's annual report on Form 10-KSB for the year ended December 31,
     2005.

     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


<PAGE>
     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  September  30,  2006 and December
     31,  2005  were  approximately  1  U.S.  dollar  to 26.78 and 28.67 Russian
     rubles,  respectively.  For  the periods ended September 30, 2006 and 2005,
     the  average  exchange  rate  for 1U.S. Dollar was 26.81 and 28.51, Russian
     rubles,  respectively.


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:

<TABLE>
<CAPTION>
<S>                                            <C>
                 Office Equipment              4 - 6 years
                 Computer Equipment                3 years
</TABLE>


<PAGE>
     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 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  the 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.


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

     INCOME  PER  SHARE  -  Income  per  share  is  computed  in accordance with
     SFAS No. 128, "Earnings Per Share". Basic income per share is calculated by
     dividing  the  net  income 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  income  per share are the same for the
     years  presented.

     COMPREHENSIVE  INCOME  (LOSS)  -  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.


<PAGE>
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.

     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  September  30,  2006  and  December  31,  2005  accounts receivable
     were  comprised  of  receivables from three parties: Yun Chou of $2,083,365
     and  $1,387,924,  respectively;  Exintra  of  $189,792  and  $342,288,
     respectively;  and  Energia of $34,699 and $None, respectively. All amounts
     were  due  for  the  Company's  forestry products sold to these parties. No
     provisions  were  accrued  as  management  of  the  Company  considers  all
     receivables  to  be  fully collectible, in accordance with the terms of the
     contracts.


6.   RELATED PARTY RECEIVABLE

     In  August  2004  the  Company  decided  to  dispose of its shareholding in
     Siberian  Wood  LLC.  On  or  about December 31, 2004 the Company signed an
     agreement  with  TK  Promtekhresurs  (a  related  party)  to  transfer  the
     Company's  interest  in  exchange  for  an  interest  free note of $551,377
     payable by TK Promtekhresures. The Company considers this transaction to be
     in  accordance  with  market  terms,  and  that  these  terms  represent an
     arms-length  transaction.  The current balance of the note receivable is as
     follows:

<TABLE>
<CAPTION>
                                  AT COST      AT NET PRESENT
                                                   VALUE
                                               SEPTEMBER 30,
                                                   2006
                              --------------  ---------------
<S>                           <C>             <C>
           December 31, 2006  $       68,922  $        68,387
           March 31, 2007             68,922           67,857
           June 30, 2007              68,922           67,331
                              --------------  ---------------
           TOTAL              $      206,766  $       203,575
                              ==============  ===============
</TABLE>


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

     As  of  September  30,  2006,  the  present  value  of  payments due to the
     Company  from the above transaction equaled $203,575. This value represents
     the  Company's  share  in  the  net  assets of Siberian Wood LLC, after the
     redemption  of  five  scheduled  payments  in the total amount of $344,610.


7.   TAXES RECEIVABLE

<TABLE>
<CAPTION>
                            9/30/2006   12/31/2005
                            ----------  -----------
<S>                         <C>         <C>

     VAT receivable         $  286,165  $   404,325
     Income tax receivable       4,725            -
                            ----------  -----------
     TOTAL                  $  290,890  $   404,325
                            ==========  ===========
</TABLE>

     As  of  September  30,  2006  and  December  31,  2005,  taxes  receivable
     consisted  mostly  of VAT receivable and were discounted at 15% annual rate
     based  on  an  average  six  months  turnover  period.


8.   INVENTORIES

     As  of  September  30,  2006  and December 31, 2005 the Company's inventory
     balances  amounted  to  zero  which  is explained by the increased seasonal
     demand  for  the  forestry  products.


9.   PREPAYMENTS AND OTHER CURRENT ASSETS

     As  of  September  30,  2006  and  December 31, 2005 amounts of $65,059 and
     $118,573,  respectively,  represent  advances  to  Cenex  Continental,  the
     Company's  payment  agent,  prepaid in order to purchase certain amounts of
     forestry  products.


10.  DEFERRED INTEREST EXPENSE

     On  September  15,  2006,  the  Company  obtained  a  short  term loan from
     Thor United Corporation (the Lender) in amount of $335,000 with interest on
     the  loan  affixed  at  $35,000, which, in accordance with the terms of the
     Loan  agreement,  was  withheld in full by the Lender immediately following
     the  receipt  of  funds  (Note  14).  Accordingly  the respective amount of
     interest  was  capitalized  and is being charged to expense pro rata at the
     end  of  each  quarter. During the quarter ended September 30, 2006, amount
     charged  to  expense  was  $2,035;  accordingly  balance  of  the  interest
     capitalized  remained  on  the  balance  sheet as of September 30, 2006, in
     amount  of  $32,965.


<PAGE>
11.  INCOME TAX

     The  Company's  provision  for  income  tax for the periods ended September
     30,  2006  and  December  31,  2005  were  as  follows:

<TABLE>
<CAPTION>
                                  9/30/2006    12/31/2005
                                  ----------  ------------
<S>                               <C>         <C>
     Current tax                  $   32,027  $    53,099
     Deferred tax (gain) expense       1,947      (18,152)
                                  ----------  ------------
     TOTAL INCOME TAX CREDIT      $   30,080  $    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:

<TABLE>
<CAPTION>
                                                     9/30/2006    12/31/2005
                                                    -----------  ------------
<S>                                                 <C>          <C>
     Net asset (liability) at the beginning of
     the period                                     $    6,957   $   (11,195)

     Charged to (expense)  income for the period        (1,947)       18,152
                                                    -----------  ------------

     NET ASSET  AT THE END OF THE PERIOD            $    5,010   $     6,957
                                                    ===========  ============
</TABLE>

     The  tax  effect  on  the  major  temporary  differences  that give rise to
     the  deferred  tax assets as at September 30, 2006 and December 31, 2005 is
     presented  below:

<TABLE>
<CAPTION>
                                               9/30/2006    12/31/2005
                                              ------------------------
<S>                                           <C>         <C>
     TEMPORARY DIFFERENCES THAT GIVE RISE TO
     DEFERRED TAX ASSETS
     Valuation of VAT receivable              $   20,713  $    29,265
     Difference in depreciable value of PPE          160            -
                                              ------------------------
     TOTAL                                    $   20,873  $    29,265

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

                                              ------------------------
     NET DEFERRED TAX ASSET                   $   20,873  $    28,986
                                              ========================
</TABLE>

     The  deferred  tax  assets  as  at  September  30,  2006  and  December 31,
     2005,  calculated at effective Russian income tax rate of 24%, is consisted
     of  the  following:

<TABLE>
<CAPTION>
                                               9/30/2006    12/31/2005
                                               ----------  ------------
<S>                                            <C>         <C>
     DEFERRED TAX ASSETS
       Valuation of VAT receivable             $    4,972  $     7,024
       Difference in depreciable value of PPE          38            -
                                               ----------  ------------
     TOTAL                                          5,010        7,024
     DEFERRED TAX LIABILITIES                           -          (67)
                                               ----------  ------------
     NET DEFERRED TAX ASSET                    $    5,010  $     6,957
                                               ==========  ============
</TABLE>


<PAGE>
     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
     income  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>
                                                   9/30/2006     9/30/2005
                                                 -----------  ------------
<S>                                              <C>          <C>
      Income (loss) before income tax            $  274,488   $    50,575
      Theoretical income tax at statutory rate       93,326        17,196
      Non deductible fair value compensation
      adjustment                                     29,142        58,282
      Change in income tax estimates                (32,364)            -
      Other permanent differences                  (120,184)      (59,626)
                                                 -----------  ------------
     INCOME TAX EXPENSE (BENEFIT)                $  (30,080)  $    15,852
                                                 ===========  ============
</TABLE>

     As  at  September  30,  2006  and  December  31, 2005 the Company had a net
     operating  loss  carry  forwards  for  purposes of US federal income tax of
     approximately  $110,000  and  $230,000 for the respective above periods. No
     deferred  tax  asset  has  been  recorded  because  of  the  uncertainty of
     realization. The carry forward expires during the period from 2022 to 2024.


12.  PROPERTY, PLANT AND EQUIPMENT

     Property,  plant  and  equipment  as  of  September  30,  2006 and December
     31,  2005  consisted  of  the  following:

<TABLE>
<CAPTION>
                                     9/30/2006    12/31/2005
                                    -----------  ------------
<S>                                 <C>          <C>
          Computer equipment        $    2,243   $     2,087
          Accumulated Depreciation      (1,381)         (904)
                                    -----------  ------------
          NET BOOK VALUE            $      862   $     1,183
                                    ===========  ============
</TABLE>


13.  SHORT TERM BORROWINGS FROM RELATED PARTIES

     Borrowings  from  related  parties  as  of  September 30, 2006 and December
     31,  2005  in  a  total  amount  of  $77,925  were  as  follows:

-    Advances  from  the  shareholders as of September 30, 2006 and December 31,
     2005  in  the  total  amount  of  $62,925  represents  non-interest bearing
     borrowings  payable  on  demand,  which  the  Company  borrowed in order to
     finance  certain administrative expenses relating to the Company's New York
     office.

-    Borrowings  from the Company's former directors outstanding as of September
     30,  2006  and  December 31, 2005 amounted to $15,000. The short term loans
     were  obtained  during  the year ended December 31, 2002 and are payable on
     demand.


<PAGE>
14.  SHORT TERM  LOANS

     Short-term  loans  as  of  September  30,  2006  and December 31, 2005 were
     as  follows:

<TABLE>
<CAPTION>
                                              %,       9/30/2006   12/31/2005
                                           CURRENCY
                                         ------------  ----------  -----------
<S>                                      <C>           <C>         <C>
     Thor United Corporation              US Dollars   $  335,000            -
     Thor United Corporation               12%, US
                                           Dollars              -  $   200,640
     Sberbank-revolving credit facility  14%, Russian
                                            Rubles         59,746      173,732
     Sberbank -cash credit               16%, Russian
                                            Rubles              -       34,667
                                                       ----------  -----------

         TOTAL                                         $  394,746  $   409,039
                                                       ==========  ===========
</TABLE>

     The  credit  line  facility  and  cash  credit  obtained  from Sberbank and
     outstanding  as  of  December  31,  2005  (for  the  cash  credit only) and
     September  30,  2006  and December 31, 2005 (for the cash credit and credit
     line  facility)  were secured by the guarantees of several individual major
     shareholders and officers of the Company. The credit line facility was also
     secured  by  property  owned  by  related  parties.

     On  September  15,  2006  The  Company obtained a new loan of $335,000 from
     Thor United Corporation (The Lender) with the interest affixed in amount of
     $35,000,  which was paid by the Company to the Lender immediately following
     the  receipt  of  funds  (Note  10).

     The  short  term  loans  obtained  from  Thor United Corporation in amounts
     of  $335,000  and  $200,640,  during  2006  and 2005, and outstanding as of
     September  30,  2006  and  December 31, 2005, respectively, were secured by
     Victoria Industries` common stock (See also Note 17). Proceeds of the loans
     were  used  mainly  for  immediate  working  capital  requirements.

     During  the  second  quarter  of  2006  the  company  repaid  in  full cash
     credit obtained from Sberbank and a $200,640 loan obtained from Thor United
     Corporation.

     Interest  expense  for  the  nine  months  period  ended September 30, 2006
     and  2005  was  accrued  in  the  total  amounts  of  $31,286  and  $None,
     respectively,  which represent the weighted average interest rate on a pool
     of  loans,  and  was  repaid  in  full  as of September 30, 2006 (Note 17).


15.  TAXES PAYABLE

     Taxes  payable  as  of  September  30, 2006 and December 31, 2005 consisted
     of  the  following:

<TABLE>
<CAPTION>
                                     9/30/2006   12/31/2005
                                     ----------  -----------
<S>                                  <C>         <C>
     Income Tax-Coptent Trading
       (Republic of Cyprus)                   -  $    32,364
     Income Tax-Victoria  Lumber
       (Russian Federation)                   -        1,666
     Taxes withheld from employees   $      797          455
     Other taxes                            541            -
                                     ----------  -----------
     TOTAL                           $    1,338  $    34,485
                                     ==========  ===========
</TABLE>


<PAGE>
16.  OTHER CURRENT  LIABILITIES

     Other  accounts  payable  in  the  total  amounts  of $313,826 and $334,326
     as  of  September  30,  2006 and December 31, 2005 were mostly comprised of
     $254,086  (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  the  Agency  Agreement.


17.  INTEREST PAYABLE

     As  of  September  30,  2006  and  December  31,  2005 the amounts of $None
     and  $2,360  represented  balance  of  interest accrued on short term loans
     obtained  by  the  Company  during  2005  (Note  14).


18.  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 outstanding as of
     September  30,  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 September
     30,  2006  and  December  31,  2005.


19.  RELATED  PARTIES

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

     Transactions  with  related  parties  are  performed  on  terms  that  may
     differ  from  those  that  would  be  available  to  unrelated  parties.

     For  details  of  related  party  balances  outstanding as of September 30,
     2006  and  December  31,  2005  see  Notes  4,  6  and  13.


20.  COMMITMENTS  AND  CONTINGENCIES

     LEASE  COMMITMENTS  --  The  Company  leases office space on a year by year
     basis  and  its outstanding lease commitments as of September 30, 2006, are
     as  follows:

<TABLE>
<CAPTION>
                            2006
                          --------
<S>                       <C>
            Office lease  $  2,085
                          --------
            TOTAL         $  2,085
                          ========
</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


<PAGE>
     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.


21.  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  September  30,  2006  and  2005  were  as  follows:

<TABLE>
<CAPTION>
                    9/30/2006   9/30/2005
                    ----------  ----------
<S>                 <C>         <C>
     Yon Chou       $6,040,526  $2,336,936
     FinRost            69,541     282,676
     Other             193,139     414,672
                    ----------  ----------
     TOTAL          $6,303,206  $3,034,284
                    ==========  ==========
</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
     the  periods  ended  September  30,  2006  and  2005  were  as  follows:


<PAGE>
<TABLE>
<CAPTION>
                              9/30/2006    9/30/2005
                             -----------  -----------
<S>                          <C>          <C>
     Exintra                 $ 3,382,975  $ 2,144,239
     Stroitransservice         1,882,308      281,893
                             -----------  -----------
     TOTAL                   $ 5,265,283  $ 2,426,132
                             ===========  ===========
</TABLE>

     To  reduce  certain  of  the  risks  associated  with  remote  location  of
     forestry  producers  and  to  facilitate  tracking  and  monitoring of such
     productions  and  the Company's sales, which consist mostly of the sales of
     Victoria  Lumber,  the  Company's operating subsidiary, the Company engaged
     Exintra  to  provide tracking and monitoring services as well as a range of
     related  logistical  services.  As compensation for these services, Exintra
     receives  a  fee  for  the  amounts  of  product  sold  by  the  Company.

     The  Company  sells  lumber  to  it's  major  Chinese  customer,  Yun  Chou
     through  its  operating  subsidiary,  Coptent Trading, Ltd., which provides
     marketing and administration services facilitating such transactions. Sales
     by  Coptent  are facilitated through Exintra, and the inter-company amounts
     attributable  to  these  sales  are  eliminated  on consolidation. Revenues
     reported  in  the  Company's  Statements of Operations consist of Coptent's
     sales to Yun Chou, the final customer, as well as of amounts that were sold
     by  Victoria  Lumber itself to third parties. Because the company also owes
     Exintra  other fees due to the above services and other logistical services
     rendered,  Exintra may act as both a vendor and a customer for the Company.

     INTEREST  RATE  RISK  -  Interest  rate  risk  arises  from the possibility
     that  changes  in  interest  rates  will  affect the value of the financial
     instruments  used  by  or  that  otherwise  relate  to  the Company and its
     operations.

     Currently,  the  Company's  approach  to  reducing  the  interest  risk  is
     borrowing  at  fixed  rates.


22.  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 of any of these regions.


23.  CHANGE IN ESTIMATES - REVERSAL OF ACCRUED INCOME TAX

     In  September  2006  the  Company  had changed its estimates with regard to
     its  liability  for  income  tax attributable to the Company's subsidiary -
     Coptent  Trading,  Ltd.,  registered  in  Cyprus.  As a non-resident of the
     Republic  of  Cyprus,  Coptent trading is not liable for income tax in this
     jurisdiction.  The amount of income tax had been recorded as a liability on
     the  Company's  Balance  sheet  as  of  December  31, 2005 in the amount of
     $32,364  and  was  calculated  at  the  10% rate to net taxable income of a
     Subsidiary.

     Since  during  the  2005  and  nine  months  period  of  2006  operations
     Coptent  Trading,  Ltd. proved its status of a non-taxpayer in the Republic
     of  Cyprus,  this  amount  was reversed from the taxes payable and has been
     netted  against  the  expense  account  of  the  current  period.


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

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

RESULTS OF OPERATIONS

Revenues  recognized  for the periods ended September 30, 2006 and 2005 amounted
to  $6,303,2006  and  $3,034,284, respectively. Cost of sales for the respective
periods,  2006  and  2005, consisted mainly of purchased logs and transportation
cost  in  the  amounts  of  $5,265,283  and  $2,426,132,  for  each of the above
respective  periods.

The  significant  increase in sales for the first nine months period of 2006 was
mostly  due  to the increased volumes of birch, larch and pine in the amounts of
$5,589,031  (29,377  cubic  meters),  $472,977 (7,102 cubic meters), and $69,541
(974  cubic  meters),  respectively.

Cost  of  sales for the nine months ended September 30, 2006 consisted primarily
of  birch,  larch,  pine  and  spruce purchase costs and transportation expenses
amounting  to  $4,763,226,  $273,514,  and  $68,109,  respectively.

Prices  for  our products are subject to volatility depending on seasonal demand
for  forestry  products. These can be seen by the relatively low gross margin in
the  first  quarter  of 2006, which resulted from 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 September 30, 2006 and December 31, 2005, were
comprised  of amounts receivable for forestry products delivered to customers in
the  amount  of  $2,307,856  and  $1,750,404  for  each  of the respective above
mentioned periods.  The significant increase in 2006 as compared to 2005 was due
to the increased volumes of forestry products sold.  Based on the contract terms
with  customers  and  on  the  Company's  management estimates, no provision for
doubtful  debts  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 $65,059 and $118,573, for each of the above
respective  periods.

The  long  term assets  of the Company as of September 30, 2006 and December 31,
2005  were  represented  by the long term related party receivable and property,
plant  and  equipment  in the amounts of  $None (2005: $132,065) and $862 (2005:
$1,183),  respectively.  The  current  portion  of  related  party receivable is
reflected  as  short  term  receivable  in  the  total amount of $203,575 (2005:
$270,381).

In  the  third  quarter of 2006, the Company had capitalized interest on the new
short term loan financing obtained in September, 2006, and charges it to expense
pro  rata  over  the  life  of  the  loan.

Current  liabilities  of  the Company as of  September 30, 2006 and December 31,
2005 mainly consisted of trade  payables  in a total amount of $1,206,787 (2005:
$843,886),  short  term  borrowings from related parties totaling $77,925 (2005:
$77,925)  and  other  accounts  payable  of  $313,826 (2005: $334,326), each for
the  respective  above  referenced  periods.  Other  accounts  payable  are


<PAGE>
represented  mostly  by  payables  to Exintra, for logistical and other services
that are reimbursed by the Company in accordance with the terms of the agreement
between  the  parties.  There  were no long term liabilities as of September 30,
2006  and  December  31,  2005.

During  the  periods  ended  September  30,  2006  and  2005,  we incurred total
operating  expenses  of $677,336 and $537,136,  respectively, consisting  mainly
of  sales,  general  and  administrative  expenses of $580,207 (2005: $416,257),
compensation expense of $29,142 (2005: $58,282) and professional fees of $67,512
(2005:  $62,372).

Compensation  expense  for  the  periods  ended  September  30,  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 September 30,
2006 and 2005 were mostly comprised of transportation and transportation related
costs  ($476,626  and  $296,871), agent fees ($25,329 and $22,053), customs fees
($8,859  and  $57,902), payroll and related taxes ($27,292 and $14,734), as well
as  rent  expenses ($15,095 and $18,513), each for the above respective periods.

Professional  fees  expenses  for  the periods ended September 30, 2006 and 2005
consisted  mostly  of  audit  fees  as  well  as  of  legal,  filing,  and other
professional  fees.  Professional  fees  were required to maintain the Company's
status  as  a  publicly  traded  company.

Depreciation  and  amortization expense for the periods ended September 30, 2006
and  2005  amounted  to  $475  and  $225,  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 adjusted 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  of  September  30,  2006  and  December  31,  2005  the Company did not have
significant  fixed  assets as it operated solely as a trader and not a producer.

In the near future, we may need 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  existing  businesses  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 in 2004 acquired its subsidiaries'
businesses,  which included, Victoria Siberian Wood, Victoria Lumber and Coptent
Trading  Ltd.

During the nine months period of 2006 we recognized a net profit of $304,568. As
of  September  30,  2006  the Company had total current assets of $3,251,381 and
total  current  liabilities of $1,994,622. As of September 30, 2006, the Company
had  cash  balance  of  $346,026  and  a  working Capital surplus of $1,256,759,
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. While the Company
was  profitable  in  2005 and the first half 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, high concentration of credit risk in consequence of its dependence on a
single  major  customer  and  limited  funding raise substantial doubt about the
Company's  ability  to  continue  as  a  going  concern.

Accordingly, our independent auditors included an explanatory paragraph in their
report  of  the  December 31, 2005 financial statements regarding concerns about
our  ability  to  continue  as a going concern. Our financial statements contain
additional  notes and disclosures describing the circumstances that lead to this
disclosure  by  our  independent  auditors.


<PAGE>
CASH  FLOW

Cash  provided by (used in) operating activities for the periods ended September
30,  2006  and  2005,  amounted  to  $211,660 and $(100,772), respectively. Cash
inflow  for  the  period ended September 30, 2006 was primarily generated by the
increase  in  trade accounts payable of $362,901 (2005: $662,434) as well as due
to  the  increase  in taxes prepaid of $121,987 (2005: decrease of $208,835) and
due  to  the  decrease  in  prepaid expenses and other current assets of $53,514
(2005:  increase  of  $47,854); nevertheless, there was significant cash outflow
resulting  from an increase in accounts receivable of $557,452 (2005: $347,083).

Cash provided by financing activities during the nine months ended September 30,
2006  and 2005 was due to short term loans received in amount of $335,000 (2005:
$34,407),  as  well  as  due  to  proceeds  received  on  repayment of long term
promissory  note  in  amount  of $206,768 (2005: $68,922). Also during the above
period of 2006, there were cash outflow due to the repayment of short term loans
in  net  amount  of  $349,293  (2005:  $None).

There  were  no  significant  activities  effecting  Cash  Flow  from  Investing
Activities  during the nine months periods ended September 30, 2006 and 2005. In
respective  period  of  2005 the Company used $884 to purchase office equipment.

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  credited  when  determining  the  Company's  US  income  tax  liability.


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


<PAGE>
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  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 November 13, 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 their respective
governments,  which  could  impose  taxes or restrictions at any time that 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, the effect of which cannot
be  accurately  predicted,  may  affect  the  marketing  of  the  Company's
products  and  its 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  the  Company  started  trading with clients located in the
Peoples'  Republic  of  China.  The future success of the Company will depend in
part  on  its ability to generate sales to its international clients and markets
outside  of  its operational locations. There can be no assurance, however, that
the  Company  will  be  successful  in generating these sales. In addition, such
transactions  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 individually is a 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 individuals, 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 intensify, 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.

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 are located in the Russian Federation, China and
Mongolia,  The  majority  of  our expenses are 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.


<PAGE>
"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 OTC BB 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 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 corporate 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  agreements  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,


<PAGE>
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

As  of the end of the period covered by this Quarterly Report on form 10-QSB, an
evaluation was performed under the supervision and with the participation of our
management,  including  the Chief Executive Officer and Chief Financial Officer,
of  the effectiveness of the design and operation of our disclosure controls and
procedures  (as  defined in Rules 13a-15(e). Based on that evaluation, our Chief
Executive  Officer  and  Chief  Financial  Officer concluded that our disclosure
controls and procedures are effective to ensure that information we are required
to  disclose in reports that we file or submit under the Securities and Exchange
Act  of  1934  (a)  is  recorded,  processed, summarized and reported within the
periods specified in Securities and Exchange Commission rules and forms, and (b)
is accumulated and communicated to our management, including our Chief Executive
Officer  and  Chief Financial Officer, as appropriate, to allow timely decisions
regarding  required  disclosure.  Our  disclosure  controls  and  procedures are
designed  to  provide  reasonable assurance that such information is accumulated
and  communicated  to  our  management.  Our  disclosure controls and procedures
include  components  of  our  internal  control  over  financial  reporting.
Management's  assessment  of  the  effectiveness  of  our  internal control over
financial  reporting  is expressed at the level of reasonable assurance that the
financial  statements  and  other  information presented herewith are materially
correct.

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. To
the  best  of  our  knowledge,  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  September  30  2006 and December 31, 2005

Consolidated Statements of Changes in Stockholders' Equity (Capital Deficit) for
the  periods  ended  September  30,  2006  and  December  31,  2005.

Consolidated  Statements  of Operations and Comprehensive Loss for the three and
nine  months  ended  September  30,  2006  and  2005

Consolidated  Statements  of  Cash Flows for the nine months ended September 30,
2006  and  2005

Notes  to  the  Consolidated  Financial  Statements  for  the  nine months ended
September  30,  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  September  30,  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: November 13, 2006               Victoria Industries, Inc.

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