Thomas Cook in talks with possible Russian partners

LONDON (Reuters) - Thomas Cook (TCG.L) remains in talks with two potential joint venture partners in Russia and expects a deal to be completed by the end of the year.

"We're in conversations with two companies out there. I'm still confident that before the end of this year we will be in a position to announce something," Chief Executive Manny Fontenla-Novoa told reporters on a conference call.

"Because it's a new market to us, the due diligence we're undertaking is pretty heavy."

Fontenla-Novoa said Thomas Cook would be the majority partner in any such venture. Thomas Cook and its main rival TUI Travel (TT.L) are keen to get into the booming Russian market as rising incomes boost demand for holidays and travel.

Fontenla-Novoa also said he foresees increased acquisition opportunities in Europe as the trading environment gets harder and the impact of rising fuel costs kicks in.

"There were a lot of people struggling last year when fuel was at $80 a barrel. At $100 plus, I think there's going to be some big opportunities out there," he said.

"We've got a strong balance sheet and can take advantage of any opportunities that might present themselves."

(Reporting by Matthew Scuffham; editing by Sue Thomas)