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 SIX MONTHS ENDED
                                  JUNE 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 August 14,
2006  within  past  60  days:  $6,549,049

State the number of shares outstanding of each of the issuer's classes of common
equity, as of August 14, 2006:

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

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


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

FORM 10-QSB


                                                 TABLE OF CONTENTS

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

Item 1.     Financial Statements (unaudited)

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

            Consolidated Statements of Operations and Comprehensive Income (Loss) - for the six months ended
            June 30, 2006 and 2005

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

            Consolidated Statements of Cash Flows - for the six months ended June 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)
-----------------------------------------------------------------------------------------------------------------

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

CURRENT ASSETS
  Cash and cash equivalents                                                      $         1,643   $      32,301
  Accounts receivable                                                                  3,341,407       1,750,404
  Related party receivable - current portion                                             270,381         270,381
  Taxes receivable                                                                       351,806         404,325
  Inventories                                                                             16,717               -
  Prepayments and other current assets                                                         -         118,573
  Deferred tax asset                                                                       6,111           6,957

                                                                                 ----------------  --------------
    Total current assets                                                               3,988,065       2,582,941

Property, plant and equipment, net                                                         1,007           1,183
Related party receivable - long term portion                                                   -         132,065

                                                                                 ----------------  --------------
TOTAL ASSETS                                                                     $     3,989,072   $   2,716,189
                                                                                 ================  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Short term borrowings from related parties                                     $        77,925   $      77,925
  Short term bank loans                                                                  184,638         409,039
  Accounts payable                                                                     2,099,727         843,886
  Taxes payable                                                                           60,362          34,485
  Other current liabilities                                                              436,997         334,326
  Interest payable                                                                             -           2,360

                                                                                 ----------------  --------------
    Total current liabilities                                                          2,859,649       1,702,021

Commitments and Contingencies (Note 19)                                                        -               -


STOCKHOLDERS' EQUITY
  Common stock, $0.001 par value, 10,965,090 shares issued and outstanding  as
  of June 30, 2006 and December 31, 2005                                                  10,965          10,965
  Additional paid-in capital                                                           1,843,137       1,823,629
  Accumulated (deficit )                                                                (644,877)       (818,200)
  Accumulated other comprehensive (loss)  - foreign currency                             (79,802)         (2,226)

                                                                                 ----------------  --------------
Total stockholders' equity                                                             1,129,423       1,014,168

                                                                                 ----------------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                       $     3,989,072   $   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 SIX MONTHS ENDED
                                                JUNE 30,        JUNE 30,
                                                  2006            2005
                                             --------------  --------------
<S>                                          <C>             <C>
REVENUES                                     $   4,842,025   $   1,810,990

COST OF SALES                                   (4,123,579)     (1,426,411)
                                             --------------  --------------

GROSS PROFIT                                       718,446         384,579

OPERATING EXPENSES
Sales, general and administrative                 (386,627)       (282,434)
Compensation                                       (19,508)        (38,806)
Professional fees                                  (43,262)              -
Depreciation and amortization                         (312)            (76)
                                             --------------  --------------

OPERATING INCOME                                   268,737          63,263

OTHER INCOME (EXPENSE)
Interest income                                      9,747           7,219
Interest expense                                   (23,708)              -
Foreign exchange loss                              (50,876)              -
Other expense, net                                       -         (30,447)
                                             --------------  --------------

INCOME BEFORE TAX                                  203,900          40,035

FOREIGN INCOME TAX                                 (30,577)         (7,968)
                                             --------------  --------------

NET INCOME                                         173,323          32,067
                                             --------------  --------------

Other comprehensive (loss)
  Foreign currency translation  (loss)             (77,576)        (12,170)
                                             --------------  --------------

COMPREHENSIVE INCOME (LOSS)                  $      95,747   $      19,897
                                             ==============  ==============

BASIC INCOME PER SHARE
  From Continuing operations                 $        0.02   $       0.003

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING      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                              -        -       19,508             -                -              19,508
Other comprehensive loss for the period           -        -            -             -          (77,576)            (77,576)
Net income for the period                         -        -            -       173,323                -             173,323

                                         ----------  -------  -----------  -------------  ---------------  ------------------
JUNE 30,2006                             10,965,090  $10,965  $ 1,843,137  $   (644,877)  $      (79,802)  $       1,129,423
                                         ==========  =======  ===========  =============  ===============  ==================

-----------------------------------------------------------------------------------------------------------------------------
</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 SIX MONTHS ENDED
                                                                         JUNE 30,        JUNE 30,
                                                                           2006            2005
                                                                      --------------  --------------
<S>                                                                   <C>             <C>
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES:
  Net income from continuing operations for the period                $     173,323   $      32,067
  Adjustments to reconcile net income from continuing
  operations to net cash in operating activities:
    Contributed services by shareholders                                     19,508          38,806
    Deferred tax expense (gain)                                                 846         (11,233)
    Net imputed interest (income)                                            (9,747)         (7,219)
    Depreciation                                                                312              76

  Changes in current assets and liabilities:
    (Increase) in accounts receivable                                    (1,591,003)       (621,689)
    Decrease in prepaid expenses and other current assets                   118,573          98,390
    (Increase) in inventories                                               (16,717)       (117,534)
    Decrease (increase) in VAT receivable and other taxes prepaids           56,484         (66,195)
    Increase in accounts payable                                          1,255,841         648,093
    Increase in taxes payable                                                25,877          16,151
    Increase (decrease) in other accounts payable                           102,671         (17,701)
    (Decrease) in interest payable                                           (2,360)              -
                                                                      --------------  --------------
NET CASH FLOW FROM OPERATING ACTIVITIES                                     133,608          (7,988)

CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES:
  Short term loans (repaid ) purchased                                     (224,401)         20,359
  Related party promissory note repaid                                      137,844               -
NET CASH FLOW FROM FINANCING ACTIVITIES                                     (86,557)         20,359

CASH PROVIDED BY INVESTING ACTIVITIES:                                            -               -

Effect of foreign exchange translation rate changes                         (77,709)        (12,068)
                                                                      --------------  --------------

(DECREASE) INCREASE IN CASH:                                                (30,658)            303
CASH, AT THE BEGINNING OF THE PERIOD                                         32,301          14,752
                                                                      --------------  --------------
CASH, AT THE END OF THE PERIOD                                        $       1,643   $      15,055
                                                                      ==============  ==============
</TABLE>

(1)  Cash  paid  for  income tax in the amount of $2,733 and $11,457 for the six
months  ended  June  30,  2006  and  2005,  respectively.
(2) Cash paid for interest in the amount of $23,708 and $None for the six months
ended  June  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 June 30,
     2006  and  December  31,  2005  were  as  follows:

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

     The  principal executive office of the Company is situated at the following
     address:  551  Fifth  Avenue,  Suite  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 June 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  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


<PAGE>
     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 six months period ended June
     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 June 30, 2006 and December 31, 2005
     were  approximately  1  U.S.  dollar  to  27.08  and  28.67 Russian rubles,
     respectively.  For  the  periods  ended June 30, 2006 and 2005, the average
     exchange  rate  for  1U.S.  Dollar  was  27.20  and  28.08, 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:

                Office Equipment            4 - 6 years
                Computer Equipment              3 years


<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  June 30, 2006 and December 31, 2005 accounts receivable were mostly
     comprised  of  receivables  from  two  parties,  Yun  Chou:  $3,341,407 and
     $1,387,924,  for  the  above  respective  periods  and,  Exintra: $None and
     $342,288,  also  for the above respective periods. 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.


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
                                                  JUNE 30,
                                                    2006
                              --------------  ---------------
<S>                           <C>             <C>
          September 30, 2006  $       68,922  $        68,387
                              --------------  ---------------
          December 31, 2006           68,922           67,856
          March 31, 2007              68,922           67,330
          June 30, 2007               68,922           66,808
                              --------------  ---------------
          TOTAL               $      275,688  $       270,381
                              ==============  ===============
</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 June 30, 2006, the present value of payments due to the Company from
     the above transaction equaled $270,381. This value represents the Company's
     share  in the net assets of Siberian Wood LLC, after the redemption of four
     scheduled  payments  in  the  total  amount  of  $275,688.


7.   TAXES RECEIVABLE

<TABLE>
<CAPTION>
                            6/30/2006   12/31/2005
                            ----------  -----------
<S>                         <C>         <C>
     VAT receivable         $  349,545  $   404,325
     Income tax receivable       2,261            -
                            ----------  -----------
     TOTAL                  $  351,806  $   404,325
                            ==========  ===========
</TABLE>

     As  of  June  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

     Inventories  as  of  June  30,  2006 and December 31, 2005 consisted of the
     hardwood  lumber  in  a  total  amounts of $16,717 and $None, respectively,
     which were valued at the lower of a specific identification cost or market.


9.   PREPAYMENTS AND OTHER CURRENT ASSETS

     As  of  June  30, 2006 and December 31, 2005 amounts of $None 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.  INCOME TAX

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

<TABLE>
<CAPTION>
                                       6/30/2006    12/31/2005
                                       ----------  ------------
<S>                                    <C>         <C>
          Current tax                  $   29,731  $    53,099
          Deferred tax (gain) expense         846      (18,152)
                                       ----------  ------------
          TOTAL INCOME TAX CREDIT      $   30,577  $    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.


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

<TABLE>
<CAPTION>
                                                            6/30/2006    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                 (846)       18,152
                                                           -----------  ------------

     NET ASSET  AT THE END OF THE PERIOD                   $    6,111   $     6,957
                                                           ===========  ============
</TABLE>

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

<TABLE>
<CAPTION>
                                                              6/30/2006    12/31/2005
                                                             ------------------------
<S>                                                          <C>         <C>
     TEMPORARY DIFFERENCES THAT GIVE RISE TO
     DEFERRED TAX ASSETS
     Valuation of VAT receivable                             $   25,300  $    29,265
     Difference in depreciable value of PPE                         160            -
                                                             ------------------------
     TOTAL                                                   $   25,460  $    29,265

     TEMPORARY DIFFERENCES THAT GIVE RISE TO
     DEFERRED TAX LIABILITIES                                         -         (279)
                                                             ------------------------
     NET DEFERRED TAX ASSET                                  $   25,460  $    28,986
                                                             ========================
</TABLE>

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

<TABLE>
<CAPTION>
                                               6/30/2006    12/31/2005
                                               ----------  ------------
<S>                                            <C>         <C>
     DEFERRED TAX ASSETS
       Valuation of VAT receivable             $    6,073  $     7,024
       Difference in depreciable value of PPE          38            -
                                               ----------  ------------
     TOTAL                                          6,111        7,024
     DEFERRED TAX LIABILITIES                           -          (67)
                                               ----------  ------------
     NET DEFERRED TAX ASSET                    $    6,111  $     6,957
                                               ==========  ============
</TABLE>

     The  taxation  charge  for  the  year is different from that which would be
     obtained  by  applying  the federal US statutory income tax rate to the net
     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>
                                                   6/30/2006    12/31/2005
                                                  -----------  ------------
<S>                                               <C>          <C>
       Income (loss) before income tax            $  203,900   $   197,026
       Theoretical income tax at statutory rate       69,326        66,989
       Non deductible fair value compensation
       adjustment                                     19,508        25,075
       Other permanent differences                   (58,257)      (57,117)
                                                  -----------  ------------
     INCOME TAX EXPENSE (BENEFIT)                 $   30,577   $    34,947
                                                  ===========  ============
</TABLE>


<PAGE>
     As  at  June 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.


11.  PROPERTY, PLANT AND EQUIPMENT

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

<TABLE>
<CAPTION>
                                6/30/2006    12/31/2005
                               -----------  ------------
<S>                            <C>          <C>
     Computer equipment        $    2,218   $     2,087
     Accumulated Depreciation      (1,211)         (904)
                               -----------  ------------
     NET BOOK VALUE            $    1,007   $     1,183
                               ===========  ============
</TABLE>


12.  SHORT TERM BORROWINGS FROM RELATED PARTIES

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

-    Advances from the shareholders as of June 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 June 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.

13.  SHORT TERM LOANS

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

<TABLE>
<CAPTION>
                                         %, CURRENCY   6/30/2006   12/31/2005
                                         ------------  ----------  -----------
<S>                                      <C>           <C>         <C>
     Thor United Corporation                12%, US
                                            Dollars             -  $   200,640
     Sberbank-revolving credit facility  14%, Russian
                                            Rubles     $  184,638      173,732
                                         16%, Russian
     Sberbank -cash credit                  Rubles              -       34,667
                                                       ----------  -----------

             TOTAL                                     $  184,638  $   409,039
                                                       ==========  ===========
</TABLE>

     The  short  term  loans  from  Sberbank outstanding as of June 30, 2006 and
     December  31,  2005  were  secured  by the guarantees of several individual
     major shareholders and officers of the Company. The credit line facility is
     also  secured  by  property  owned  by  related  parties.


<PAGE>
     The short term loan obtained from Thor United Corporation outstanding as of
     December  31,  2005  was  secured by Victoria Industries` common stock (See
     also Note 16). 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 loan obtained from Thor United Corporation.

     Interest  expense  for  the  six  months  ended  June 30, 2006 and 2005 was
     accrued  in  the  total  amounts  of $23,708 and $None, respectively, which
     represent  the  weighted  average interest rate on a pool of loans, and was
     repaid  in  full  as  of  June  30,  2006.


14.  TAXES PAYABLE

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

<TABLE>
<CAPTION>
                                     6/30/2006   12/31/2005
                                     ----------  -----------
<S>                                  <C>         <C>
     Income Tax- Coptent Trading     $   59,362  $    32,364
     Taxes withheld from employees          459          455
     Income Tax-Victoria  Lumber
     (Russian Federation)                     -        1,666
     Other taxes                            541            -
                                     ----------  -----------
     TOTAL                           $   60,362  $    34,485
                                     ==========  ===========
</TABLE>


15.  OTHER CURRENT LIABILITIES

     Other  accounts payable in the total amounts of $436,997 and $334,326 as of
     June  30,  2006  and  December  31,  2005 were mostly comprised of $370,826
     (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. The amount of $33,627
     outstanding  as  of  June 30, 2006 represents audit fees payable to John A.
     Braden  &  Company,  P.C.,  Independent  Registered Public Accounting Firm.


16.  INTEREST PAYABLE

     As  of  June 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  13).


17.  COMMON STOCK

     There  are 75,000,000 common shares authorized by the Company's Amended and
     Restated Certificate of Incorporation. There are 10,965,090 ordinary shares
     with  a par value of $0.001 US dollar issued and outstanding as of June 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 June 30, 2006
     and  December  31,  2005.


<PAGE>
18.  RELATED PARTIES

     Related  parties include shareholders, affiliates and entities under common
     ownership, over which the Company has the ability to exercise a significant
     influence  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 June 30, 2006 and
     December  31,  2005  see  Notes  4,  6  and  12.


19.  COMMITMENTS AND CONTINGENCIES

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

<TABLE>
<CAPTION>
                                   2006
                                  ------
<S>                               <C>
                    Office lease  $4,170
                                  ------
                    TOTAL         $4,170
                                  ======
</TABLE>

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

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


20.  RISK MANAGEMENT POLICIES

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

     CREDIT  RISK - The Company is exposed to credit risk which is the risk that
     one  party  to  a financial instrument will fail to discharge an obligation
     and cause the other party to incur a financial loss. The Company structures
     the  levels of credit risk it undertakes by placing limits on the amount of
     risk  accepted  in relation to one customer, or groups of customers. Limits
     on  the  level  of  credit  risk  by  customer  are  approved by the Credit
     Committee.

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


<PAGE>
     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  June  30,  2006  and  2005  were  as  follows:

<TABLE>
<CAPTION>
               6/30/2006   6/30/2005
               ----------  ----------
<S>            <C>         <C>
     Yon Chou  $4,769,583  $1,378,849
     FinRost       72,442     239,556
     Other              -     192,585
               ----------  ----------
     TOTAL     $4,842,025  $1,810,990
               ==========  ==========
</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  June  30,  2006  and  2005  were  as  follows:

<TABLE>
<CAPTION>
                        6/30/2006   6/30/2005
                        ----------------------
<S>                     <C>         <C>
     Exintra            $2,669,924  $1,426,411
     Stroitransservice   1,453,655           -
                        ----------------------
     TOTAL              $4,123,579  $1,426,411
                        ======================
</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.


<PAGE>
21.  CONCENTRATION OF BUSINESS RISK

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


22.  SUBSEQUENT EVENTS

     As  of  the  date of this report the Company had repaid the first scheduled
     tranche  of  its revolving credit facility obtained from Sberbank in amount
     of  approximately  $63,388.


<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 June 30, 2006 and 2005 amounted to
$4,842,025  and  $1,810,990,  respectively.  Cost  of  sales  for the respective
periods,  2006  and  2005, consisted mainly of purchased logs and transportation
cost  in  the  amounts  of  $4,123,579  and  $1,426,411,  for  each of the above
respective  periods.

The  significant  increase  in sales for the first six months of 2006 was mostly
due  to  the  increased  volumes  of  birch,  larch  and  pine in the amounts of
$4,316,353  (20,808  cubic  meters),  $452,043 (6,470 cubic meters), and $68,163
(974  cubic  meters),  respectively.  In  addition, during the second quarter of
2006  the  Company  sold insignificant amount of spruces resulting in revenue of
$5,466  (68  cubic  meters).

Cost  of  sales  for  the  six months ended June 30, 2006 consisted primarily of
birch,  larch,  pine  and  spruce  purchase  costs  and  transportation expenses
amounting  to  $3,805,085,  $248,816,  and  $67,132  and  2,546,  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  June  30,  2006 and December 31, 2005, were
comprised  of amounts receivable for forestry products delivered to customers in
the  amount  of  $3,341,407  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 $None and $118,573, for each of the above
respective  periods.

The  long  term assets  of the Company as of June 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 $1,007 (2005:
$1,183),  respectively.  The  current  portion  of  related  party receivable is
reflected  as  short  term  receivable  in  the  total amount of $270,381 (2005:
$270,381).

Current  liabilities  of  the Company as of  June 30, 2006 and December 31, 2005
mainly  consisted  of  trade  payables  in  a  total amount of $2,099,727 (2005:
$843,886),  short  term  borrowings from related parties totaling $77,925 (2005:
$77,925)  and  other  accounts  payable  of  $436,997 (2005: $334,326), each for
the  respective above referenced periods. Other accounts payable are represented
mostly  by  payables  to  Exintra,  for  logistical  and other services that are
reimbursed  by  the  Company  in


<PAGE>
accordance  with  the terms of the agreement between the parties.  There were no
long  term  liabilities  as  of  June  30,  2006  and  December  31,  2005.

During  the  periods  ended  June 30, 2006 and 2005, we incurred total operating
expenses  of $449,709 and $321,316,  respectively, consisting  mainly  of sales,
general  and  administrative  expenses  of  $386,627  (2005:  $282,434),
compensation expense of $19,508 (2005: $38,806) and professional fees of $43,262
(2005:  $None).

Compensation expense for the periods ended June 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 June 30, 2006
and  2005  include transportation and transportation related costs ($315,059 and
$198,357),  agent  fees  ($13,641  and $13,404), legal and professional services
($11,422  and  $1,567),  customs  fees ($6,224 and $40,459), payroll and related
taxes ($18,392 and $9,928), as well as rent expenses ($10,371 and $15,093), each
for  the  above  respective  periods.

Professional  fees  expenses  for  the  periods  ended  June  30,  2006 and 2005
consisted  mostly  of audit fees of $40,967 and $None, and legal and filing fees
of  $2,295  and $None, for the above respective periods.  Professional fees were
required  to  maintain  the  Company's  status  as  a  publicly  traded company.

Depreciation  and  amortization  expense for the periods ended June 30, 2006 and
2005  amounted  to  $312  and  $76,  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  June 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.

In the first half of 2006 we recognized a net profit of $173,323. As of June 30,
2006  the  Company  had  total  current  assets  of $3,988,065 and total current
liabilities  of $2,859,649. As of June 30, 2006, the Company had cash balance of
$1,643  and  a  working  Capital  surplus  of  $1,128,416,  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 June 30,
2006  and 2005, amounted to $133,608 and $(7,886), respectively. Cash inflow for
the  period ended June 30, 2006 was primarily generated by the increase in trade
accounts  payable  of $1,255,841 (2005: $648,093) as well as due to the increase
in other accounts payable of $102,671 (2005: decrease of $17,701) and due to the
decrease  in  prepaid  expenses  and  other  current  assets  of $118,573 (2005:
$98,390);  nevertheless,  there  was  significant cash outflow resulting from an
increase  in  accounts  receivable  of  $1,591,003  (2005:  $621,689).

Cash (used in) provided by financing activities during the six months ended June
30,  2006  and  2005  was  due  to  short term loans repaid (2006: $224,401) and
received  (2005:  $20,359)  as  well  as  due  to the repayment of related party
receivable  in  amount  of  $137,844  (2005:  $None),  respectively.

There  were  no  activities effecting Cash Flow from Investing Activities during
the  six  months  periods  ended  June  30,  2006  and  2005.

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  criterion  (2).  Determination of
criteria  (3)  and  (4)  are based on management's judgments regarding the fixed
nature of the selling prices of the products delivered and the collectibility of
those  amounts.  Provisions  for  discounts  and rebates to customers, and other
adjustments  are provided for in the same period the related sales are recorded.
The  Company defers any revenue for which the product has not been delivered and
accepted  by  its  customers. In accordance with the Company's standard contract
terms,  once delivered and accepted the product cannot be returned and no claims
can  be presented to the Company. The Company recognizes revenue on gross basis.


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

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

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

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

LIMITED OPERATING HISTORY; ANTICIPATED LOSSES; UNCERTAINTY OF FUTURE RESULTS

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

LIMITED  PUBLIC  MARKET

The  Company's  Common  Stock is currently quoted on the NASD OTC Bulletin Board
under  the  ticker  symbol VIIN.  As of August 14, 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  June  30  2006  and  December  31,  2005

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

Consolidated  Statements of Operations and Comprehensive Loss for the six months
ended  June  30,  2006  and  2005

Consolidated Statements of Cash Flows for the six months ended June 30, 2006 and
2005

Notes to the Consolidated Financial Statements for the six months ended June 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 WILL BE FILED
SEPARATELY  WITH  THE  SECRETARY,  SECURITIES  AND  EXCHANGE COMMISSION, AND ARE
SUBJECT  TO  A  CONFIDENTIAL  TREATMENT  REQUEST  PURSUANT  TO RULE 24B-2 OF THE
SECURITIES  ACT  OF  1934.

SUBSIDIARIES:

As  at  June  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: August 14, 2006                   Victoria Industries, Inc.


                                        /S/ Albert Abdoulline
                                        ---------------------
                                        Albert Abdoulline, President, CEO