Annual Report 2008 Report Annual

Russia Annual report 2008 Russia Raiffeisenbank Survey of Key Data

ZAO Raiffeisenbank 2008 2007 Change Monetary values are in RUR mln Consolidated Income Statement Net interest income after provision for loan impairment 22 014 15 622 40.9% Net commission income 5 483 4 915 11.5% Trading profit 5 385 918 486.5% Administrative and other operating expenses –17 197 –13 063 31.6% Profit before tax 15 670 8 869 76.7% Profit 11 198 6 697 67.2% Balance Sheet Due from other banks 7 426 3 681 101.7% Loans and advances to customers 364 540 294 825 23.6% Due to other banks 60 275 45 643 32.1% Customer accounts 259 402 204 547 26.8% Total assets 619 320 444 232 39.4% Capital adequacy in accordance with the Central Bank of Russian Federation requirements Capital 63 519 42 919 48.0% Actual capital adequacy ratio 13.4% 11.2% 19.8% Required minimum capital adequacy ratio 10.0% 10.0% 0.0% Performance Return on average equity (ROE) before tax 25.6% 21.1% 21.4% Return on equity (ROE) after tax 18.3% 15.9% 14.9% Cost/income ratio 43.3% 50.1% –13.5% Return on assets (ROA) before tax 3.0% 2.4% 24.0% Resources Number of staff as at 31 December 10 731 9 217 16.4% Business outlets as at 31 December 233 237 –1.7% We remain confident in the high potential of the Russian economy. The Raiffeisen Group has always adhered to its chosen strategy in Russia and has proved its readiness to support the development of ZAO Raiffeisenbank, the largest and the most successful subsidiary bank in the Raiffeisen International Group.

Herbert Stepic

CEO of Raiffeisen International Bank-Holding AG Chairman of the Supervisory Board of ZAO Raiffeisenbank

1

Сontents

Сontents

Statement by the Supervisory Board 4

Statement by the Chairman of the Board 6

Russia: Economic Prospects 12

RZB Group and Raiffeisen International at a Glance 18

Vision and Mission 22

Human Resources Policy 23

Anti-Money Laundering Policy 28

Segment Reports 32

Corporate Customers 32

Corporate Finance and Investment Banking 37

Treasury Operations 41

Financial Institutions 42

Depository Services 43

Public Sector Department 46

Retail Customers 47

Raiffeisen-Leasing 54

Raiffeisen Capital Asset Management Company 55

Non-State Pension Fund Raiffeisen 56

Regional Expansion 60

Corporate Social Responsibility 61

Financial Statements 66

Addresses and Contacts 72

3 Statement by the Supervisory Board

Statement by the Supervisory Board

For the Raiffeisen International Group, the year 2008 was marked by both another record result — quite in contrast to other banking groups — and the beginning of a de- teriorating economic environment. The general negative trend of the second half of the year notwithstanding, we have achieved a consolidated profit of EUR 982 million, 17 per cent more than in 2007.

Inevitably, the whole region of Central and Eastern Europe (CEE) has by now also been affected by the current global financial crisis and will, in total, show negative growth rates. However, due to the fact that the economic ”catching-up” process will continue, the analysts of our corporate parent Raiffeisen Zentralbank Österreich AG (RZB) expect the region's rebound to be more pronounced than that in Western Europe, and see this development starting in 2010.

It was similarly inevitable that Raiffeisen International would be affected by these ­global economic developments. Our Group's one and only focus is CEE, and with good reason: this is where a reliable bank can do sustainable business, and this con- tinues to be true both for the present and the future. We satisfy a natural demand with our products for all customer groups, and our almost 15 million customers provide a broad and well-diversified basis for our business. And it is those customers who we remain committed to — now more than ever. We realise that they are affected by this crisis in many different ways and we will support them to come out of it in as good shape as possible.

It is obvious that we will not see the growth rates of the past years again in the near future either in our in- dividual markets or on a Group level. However, our banks across the region have both the financial and structural means necessary to weather the current crisis. The change in the global economic situation has led us to focus even more on the quality of our assets, which we will keep on improving throughout the en- tire Group. So that we can best achieve this goal, a risk policy geared to the new environment is the cen- terpiece of our action package. Further measures are aimed at increasing efficiency and at continuously growing the retail segment, where our primary goal is to promote further expansion of customer deposits. I am glad that we made substantial progress in this respect and am confident that this trend will continue in 2009 thanks to the trust our customers extend towards us!

Regarding ZAO Raiffeisenbank (Raiffeisenbank), I would like to note the excellent financial results of the Bank in 2008. Last year Raiffeisenbank strengthened its position on the Russian banking market by continu- ing its strategy to develop all of its divisions. According to Interfax-CEA, as of the end of 2008, Raiffeisenbank was Russia’s ninth largest bank in terms of assets, while it ranked sixth in private deposits and retail loans.

Raiffeisenbank has maintained stability due to a clear-cut and well-implemented business model which takes into account all the specifics and trends of the Russian banking market and allows for prompt and timely responses to any fluctuations in the economy.

As of the end of 2008, Raiffeisenbank’s assets amounted to RUR 619.3 billion, profits rose by 67% and reached RUR 11.2 billion. It stands to mention that the Bank has delivered the best result within the Raiffeisen International Group.

2008 was a difficult year for the banking system both in Russia and around the world. Nevertheless, Raiffeisenbank has continued to develop successfully and increased its charter capital by 68% to RUR 36 711 million. On 24 September 2008, Raiffeisenbank completed an additional issue of shares with the

4 Statement by the Supervisory Board

total par value of RUR 14 882 million. 100% of the additional issue have been acquired by Raiffeisen International Bank Holding AG. The decision to raise the Bank’s charter capital confirms not only the share- holders’ confidence in the Russian market but also ZAO Raiffeisenbank’s importance for the Raiffeisen International Group.

Another affirmation of ZAO Raiffeisenbank’s stable position was a special agreement with the Central Bank of Russia signed in November. It allows Raiffeisenbank to expand its loans to small and medium-sized banks secured by the Central Bank’s guarantee of compensation of losses on the interbank market. Raiffeisenbank was one of the first major banks to sign this agreement. We think highly of the Russian mar- ket’s potential and welcome the prompt and appropriate measures taken by the Central Bank and the gov- ernment of the Russian Federation to support the nation’s financial system.

Raiffeisenbank has continued to realise its strategy to optimise its retail network to satisfy clients’ needs in each individual region. At the end of 2008, it provided services to 1.6 million customers in 45 Russian regions from Kaliningrad to Kamchatka.

The year 2008 brought changes in the Bank’s management. On 30 September, Pavel Gurin, who for the last two years had served in the office of Deputy Chairman of the Board, was appointed Chairman of the Board of ZAO Raiffeisenbank by the Supervisory Board. Oxana Panchenko, who had been chief of the Corporate Banking Division, was appointed a Member of Raiffeisenbank’s Board and Head of Corporate Banking and Corporate Finance Directorate. On 1 December, Andrey Stepanenko, a Member of the Board at ZAO Raiffeisenbank, assumed the position of Head of the Consumer Banking Directorate.

A highly qualified and closely-knit team is of paramount importance to achieving our goals as we build one of the largest banks with foreign capital on the CIS market. I am sincerely grateful to the Board and the whole team of Raiffeisenbank for their productive work and balanced approach to conducting business. Without their professionalism and commitment, the results that the Bank achieved in 2008 would not have been possible. I also express my gratitude to our clients and partners in Russia — we will use our best efforts to continue our successful cooperation in the coming year.

Herbert Stepic CEO of Raiffeisen International Bank-Holding AG Chairman of the Supervisory Board of ZAO Raiffeisenbank

Supervisory Board: Heinz Wiedner Martin Grüll Aris Bogdaneris Peter Lennkh

5 Statement of the Chairman of the Board

Statement of the Chairman of the Board

The year 2008 was an important benchmark in Raiffeisenbank’s history. Though it was not an easy year for the world banking system or Russia’s, I am confident that we have managed to meet the expectations of our clients, partners, and shareholders, and that we have justified their trust in us by demonstrating high quality service, a steadfast commitment to our strategy, and excellent financial results.

In 2008, Raiffeisenbank strengthened its reputation as a universal bank which focuses both on corporate and private customers, as well as investment banking. At the end of 2008, the Bank’s corporate loans portfolio exceeded RUR 258 billion. Its corpo- rate clients numbered almost 13 000, while small businesses exceeded 62 000. In the field of corporate finance and investment banking, Raiffeisenbank is a recognised player on the corporate bonds market. In 2008 the Bank acted as an arranger of 14 corporate bond issues with a total par value of more than RUR 78 billion.

Raiffeisenbank has continued to develop its retail business, offering clients a wide range of products from current accounts and credit cards to mortgage loans. As of the end of 2008, the Bank’s retail portfolio reached RUR 105.7 billion.

Another affirmation of Raiffeisenbank’s leading position in retail services on the Russian financial market and consumer confidence was the prize for Best Retail Bank at the Retail Finance Awards 2008, as well as the top position in the annual rating of service quality at retail banks published by The Retail Finance in co- operation with SAS Russia/CIS. In November 2008 Raiffeisenbank was named Best Bank for Car Finance at the Car Dealer of the Year awards.

In April 2008 Raiffeisenbank signed a syndicated loan agreement worth USD 1 billion, the most important syndicated loan ever obtained by a member bank of the Raiffeisen International Group on the CEE markets.

In a growing economic crisis, risk management and control have been among the Bank’s top priorities. The Bank’s high financial results for 2008 and clients’ and credit organisations’ continued trust in the Bank once again proved the soundness of the Bank’s approach to risk assessment and the high professionalism of its staff.

Raiffeisenbank’s subsidiaries—the Raiffeisen Non-State Pension Fund, OOO Raiffeisen-Leasing, and Raiffeisen Capital Asset Management Company — have continued to develop successfully and play an important role in the Bank’s overall achievements. In 2008 the client base of Raiffeisen Non-State Pension Fund counted over 100 corporate clients and more than 35 000 individuals. Thanks to the productive work of its entire team, OOO Raiffeisen-Leasing won the Grand Prix in the Financial Elite of Russia awards, and was named the Leasing Company of the Year. Based on results of 2008, Raiffeisen Capital Asset Management Company has entered the top ten managers of open unit investment funds in Russia (accord- ing to www.investfunds.ru), and the company’s total assets exceeded RUR 2.5 billion.

In 2008 Raiffeisenbank focused on improving current services and launching new products. In October Raiffeisenbank and Sky Link (ZAO Delta Telecom) launched a joint SkyLink-Raiffeisenbank credit card on the MasterCard payment system with special bonus options available to residents of St. Petersburg and Leningrad Oblast.

The launch of Raiffeisenbank’s student credit card was a unique event on the retail market. To implement this project the Bank partnered with major academic institutions in Moscow, St. Petersburg, Novosibirsk,

6 Statement of the Chairman of the Board

Barnaul, Bratsk, Krasnodar, Kazan, and Nizhny Novgorod. Students who did not have full-time employ- ment upon graduation were given the opportunity to start their credit history at Raiffeisenbank.

One of our most important goals is to provide our clients with new options in using the Bank’s products. In March 2008 Raiffeisenbank offered a special Concierge programme to the holders of Gold credit and debit cards. It provides clients with information about transport, hotels, restaurants, and rent-a-car services 24 hours a day, 365 days a year.

As the bank strives to expand the range of services in the high-tech sector, it works hard to improve the re- mote banking system. In October 2008 Raiffeisenbank introduced a new option to the Raiffeisen CONNECT internet banking system which allows clients to make online payments for mobile communications without any fees. We also upgraded Raiffeisen CONNECT’s design to comply with the international standards of the Raiffeisen Group.

A wide regional branch network was among the contributors to the Bank’s growth and development in Russia. In 2008 Raiffeisenbank expanded the borders of its operations. Eight new branches were opened in Moscow, 9 new branches — in Saint Petersburg, along with additional offices in Novosibirsk, Ekaterin­ burg, Nizhny Novgorod, Kirov, and the new Bashkortostan division was established in Ufa. Thanks to the expansion of the branch network, the Bank’s products and services are used by an ever-increasing number of clients. As of the end 2008, Raiffaisenbank had more than 1.6 million individual customers.

In 2008 we continued the integration process launched in 2007 in connection with the merger of ZAO Raiffeisenbank Austria and OAO Impexbank. A number of important challenges related to the integration process have been successfully resolved.

As it conducts financial operations, ZAO Raiffeisenbank, like the Raiffeisen Group as a whole, has also paid special attention to corporate social responsibility. We have supported numerous cultural and sport events to ensure stable social development. Raiffeisenbank has implemented a charity programme on both the federal and local levels. In 2008, for the first time ever, we launched Helping Together!, an internal charity programme which enabled the Bank’s employees to provide financial and volunteer assistance to children in need.

On behalf of ZAO Raiffeisenbank’s Board, let me thank all the Bank’s staff for their continued support and devotion. We pride ourselves on our team of true professionals capable of solving any business challenge and on the relations of trust and confidence among our team members. We have achieved a lot but we still have a long way to go. I would also like to sincerely thank all of our partners and clients for their coopera- tion — to a great extent, we owe all our achievements to you. We are ready to go further down the road of success together with you!

Pavel Gurin Chairman of the Board ZAO Raiffeisenbank

7 Managing Board of ZAO Raiffeisenbank

Managing Board of ZAO Raiffeisenbank

Andrey Stepanenko Oxana Panchenko Sergei Monin Pavel Gurin

Member of the Board, Member of the Board, Member of the Board, Chairman Head of Consumer Banking Head of Corporate Head of Treasury Directorate of the Board Directorate Banking and Corporate Finance Directorate

8 Managing Board of ZAO Raiffeisenbank

Christoph Schoefboeck Alexandre Ouchakov Dirk Hinze

Member of the Board, Member of the Board, Member of the Board, Head of Operations and Head of Economic Security, Head of Retail Sales IT Directorate Assets Recovery and Compliance and Distribution Channels Control Directorate Directorate

9

Raiffeisenbank Gzhel

Icy white and hot blue, the light flit of pale blue petals, and the joy that comes from seeing the first flowers among the banks of snow that has not yet melted: this is Gzhel. Gzhel, an old pottery-ware region not far from Moscow, has long been famous for its clays. Until the beginning of the 19th century, dishes, bricks, tiles, and toys typical of the time were made here and painted in every colour of the rainbow. In the 19th century, Gzhel’s artisans began to pro- duce semifaience, faience, and porcelain. Kvass and beer vessels, decorative platters, original home decorations, and figurines of people and animals appeared. Now the items were painted mostly with a dark blue paint, and natural motifs, scenes from everyday life, and the subjects of fairy tales and epics were employed. The Gzhel painting technique is unique. When covered with a transpar- ent glaze, the cobalt-based paintings retain their charm for many years and do not fade or disappear. Russia: Economic Prospects

Russia: Economic Prospects

In 2008 Russia’s economic environment deteriorated substantially, primarily due to the growing mo- mentum of the world financial crisis. While in the first half of the year the country’s main problems were closing of foreign debt markets and to refinance foreign loans, in the second half of the year the crisis affected nearly all segments of the economy and the financial market.

The Financial Sector

In August and September of 2008, amid negative news from the U.S. and Europe, falling oil prices, and a military conflict in South Ossetia, Russia witnessed a massive outflow of capital and a slump in the stock market. This, in turn, resulted in a chain of non-payments under REPO deals and a near-total halt of the in- terbank market in mid-September, which triggered a state of default in several banks. News of troubles in the banking sector led to mass withdrawals from individual deposits and additional liquidity problems.

To avoid a large-scale crisis in the banking sector, the Russian government and the Central Bank took steps to provide the banking sector with additional rouble liquidity worth tens of billions of U.S. dollars. Government- owned companies promptly acquired or merged with a number of seriously troubled banks. Thereafter the Deposit Insurance Agency received the substantial financial resources required to re-organise troubled banks. All of these measures helped to reduce tension in the banking sector and stabilise the situation.

Currency Market

While in the first half of 2008 Russia experienced a substantial inflow of capital primarily due to the expected strengthening of rouble, in September the market made a sharp U-turn. The main reason for this abrupt change in the currency market was the fall in world oil prices from USD 120 per barrel in early August to USD 35 in late December. In addition, the world market of ferrous and non-ferrous metals crashed. These were blows to Russia’s export , where hydrocarbon resources accounts for 65% and metals for 10%, triggering mass pur- chases of foreign currency amid expectations of rouble devaluation. In November the Bank of Russia gave up supporting a fixed rouble rate and started a smooth weakening of the Russian currency: by the end of 2008 the rouble’s rate relative to the dual-currency basket (USD 0.55/euro 0.45) fell by 19%. From September to December 2008, the Russian Central Bank sold USD 170 billion to support its rouble-rate policy.

Money Market

Outflow of capital and household deposits led to a substantial deterioration in banking liquidity in the sec- ond half of 2008. In general, additional rouble liquidity provided by monetary authorities helped prevent uncontrolled growth in short-term rates, though interest rates occasionally spiked nonetheless. At the same time, in an attempt to fight inflation and capital outflow, the Bank of Russia raised interest rates on its loans more than once in 2008: the overnight REPO rate rose from 6% to 9%, and currency swaps from 8% to 13%. Along with these measures aimed at preventing the capital outflow, in October 2008 the Russian Central Bank applied limitations on currency swap transactions. In November and December it recom- mended that banks refrain from increasing their foreign assets and net currency position relative to previous months. These steps facilitated a sharp growth in rouble rates on the currency swap market and pushed in- terbank market rates upward.

In the second half of 2008 long-term rates (1 month and more) on the money market were growing much faster than short-term ones. At first this was triggered by diminished trust among interbank market players, and later by expectations of rouble devaluation.

12 Russia: Economic Prospects

Economic Growth

Though in the first half of 2008 the Russian economy continued to demonstrate high growth rates, in the third quarter, as long-term money grew scarce and problems arose in the banking sector, economic devel- opment slowed substantially, resulting primarily in the decline in growth rates in investment and construc- tion. In the fourth quarter, the banking crisis led to a downswing in loan resources: many companies were unable to obtain even the short-term loans required to continue their operations. Measures taken by the government to support the banking sector, recomendations to state-owned banks to provide loans to cer- tain companies, and refinancing of foreign corporate debt through VEB helped prevent a non-payment crisis but still failed to completely restore the economy’s credit mechanism.

Problems on the loan market were aggravated by a fall in oil and metal prices. A sharp downswing in oil prices led to a substantial reduction in tax revenues and a reduction of the financial resources needed by the government to support the economy; furthermore, it formed expectations of rouble devaluation, which diverted significant resources from the economy. Low metal prices brought many companies from metalur- gical sector, which makes up approximately one-quarter of all manufacturing industries, to the brink of collapse.

All these factors triggered a sharp decline in industrial production and investment in the fourth quarter. In December the growth rate of industrial output fell to -10.3% year-on-year, while growth in investments fell to -2.3%. In the fourth quarter the annual GDP growth rate was 1.2% , while overall economy grew by 5.6% in 2008.

Outlook for 2009

We expect 2009 to be the most difficult year for the Russian economy in the last decade. Most economists agree that a recession awaits Russia this year.

The state of the Russian economy and of the banking sector will to a large extent depend on the situation on international markets, primarily on commodity markets, and on the success of the government’s mea- sures to stimulate the economy. The government allocated substantial resources to support the banking sys- tem and the real sector as tax revenues from oil producers plummeted. This led to a record-high deficit of the federal budget, which is estimated to be 8% to 9% of the GDP in 2009. To finance the budget deficit, the government will use the resources of the Reserve Fund, the Future Generations Fund, and loans on do- mestic and international markets. Thus in 2009 the public sector will be an important contributor to the sta- bility of the financial sector and the entire economy. Yet in the mid-term, government spending on this scale combined with continued reduction in the Central Bank’s currency reserves may lead to a further decline in Russia’s international rating and an imbalanced national budget system.

In January 2009 the Central Bank announced it would end its policy of smooth rouble devaluation and fixed the upper limit of the dual-currency basket at RUR 41. Thus, relative to November 2008 the rouble weakened by nearly 25%. The Bank of Russia insists that this rouble rate will balance the current account at oil prices of USD 40 per barrel. However, it is still unclear to what extent the end of the smooth rouble devaluation will reduce expectations of rouble weakness and, consequently, how soon interest rates will go down and the lending mechanism will revive. Generally, the rouble’s weakening should have a positive effect on Russia’s trade balance and create the conditions required to restore economic growth in future.

13 Russia: Economic Prospects

Macroeconomic indices, results and forecasts

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 forecast forecast GDP, bln euros 280.8 342.1 364.4 383.3 476.3 614.8 779.9 920.6 1129.6 870.7 1043.9 GDP annual growth rate, % 10.0 5.1 4.7 7.3 7.2 6.4 7.4 8.1 5.6 –3.5 0.5 Industrial output, % yoy 11.9 4.9 3.1 8.9 8.0 5.1 6.3 6.3 2.6 –4.0 1.5 Unemployment rate, average % 10.6 8.9 8.0 8.6 8.2 7.6 7.2 6.2 6.1 7.7 8.2 Nominal wages, average % yoy 46.0 45.7 34.6 26.1 24.3 25.2 25.5 26.0 25.9 4.2 12.8 Producer prices, average % yoy 46.9 18.2 10.5 16.5 23.4 20.7 12.4 14.2 23.8 3.9 9.4 Inflation, average % yoy 20.8 21.6 16.0 13.6 11.0 12.5 9.8 9.1 14.1 12.0 10.0 Consolidated budget surplus, % of 1.9 3.0 0.9 1.3 4.5 8.1 8.4 6.1 3.8 –8.1 –2.0 GDP Current account position, % of GDP 18.1 11.1 8.4 8.2 10.0 11.0 9.6 6.2 5.9 2.7 1.0 CBR's international reserves, bln euro 25.8 36.6 42.0 58.0 88.9 149.1 223.7 318.0 268.0 225.3 279.1 Foreign debt, % of GDP 61.6 47.8 44.2 43.1 36.0 33.7 31.6 36.7 28.9 37.2 37.8 RUR/USD rate at year end 28.5 30.5 31.9 29.2 27.7 28.7 26.3 24.6 29.4 34.3 34.3 RUR/EUR rate at year end 26.8 27.1 33.5 36.9 37.7 33.9 34.7 35.8 41.4 51.4 48.0

Source: Thomson Financial Datastream, Raiffeisen Group’s estimates

Dual-Currency Basket

RUR 39

37

35

33

31

29

27 July 2008 July 2008 June 2008 June 2008 May 2008 April 2008 April 2008 March 2008 March 2008 March August 2008 August 2008 January 2008 January 2008 January 2009 October 2008 October 2008 February 2008 February 2008 February December 2008 December 2008 November 2008 November 2008 September 2008 September 2008

Source: Rosstat, Central Bank of the Russian Federation, Reuters

14 Russia: Economic Prospects

International Reserves of the Central Bank of the Russian Federation

650

600

550

500

450

400

350

300 June 2008 June 2008 May 2008 May 2008 April 2008 March 2008 March 2008 March August 2008 August 2008 January 2009 January 2008 January 2008 October 2008 October 2008 February 2008 February December 2008 December 2008 November 2008 September 2008 CBR’s international reserves Source: Rosstat, Central Bank of the Russian Federation, Reuters

Real Sector

% yoy 30

25

20

15

10

5

0

–5

–10

–15 July 2007 July 2008 May 2007 May 2008 March 2007 March 2008 March January 2007 January 2008 September 2007 November 2007 November 2008 September 2008 Fixed capital investments Industrial output Source: Rosstat, Central Bank of the Russian Federation, Reuters

MosPrime 3М Rate

35

30

25

20

15

10

5

0 June 2007 June 2007 June 2008 June 2008 May 2007 May 2008 April 2007 April 2008 March 2007 March March 2008 March August 2007 August 2008 January 2008 January 2009 October 2007 October 2008 February 2007 February February 2008 February December 2006 December 2007 December 2008 November 2007 November 2008 September 2007 September 2008

3-month MosPrime rate Source: Rosstat, Central Bank of the Russian Federation, Reuters

15

Raiffeisenbank Khokhloma

Khokhloma, blazing with rubies and gold, is a bright, striking phe- nomenon of Russian folk painting. As a craft, Khokhloma painting appeared in the 17th century in the Nizhniy Novgorod province and was named after Khokhloma, a large village. Exquisitely beau- tiful wooden cups, vases, spoons, and ladles decked out in paint- ings that livened up beloved nature-based motifs were brought by artisans from the Volga villages to the fairs here. The dishes were painted with traditional black and red designs on a golden back- ground using the most delicate of squirrel-fur brushes. The old tech- nique of gilding wooden items had originated with icon painting and has been preserved nearly unchanged to this day. The painted items are covered in a special lacquer and are hardened in an oven until a golden film is formed. This is how the famous ”golden Khokhloma” is made. Raiffeisen International and the RZB Group at a glance

Raiffeisen International and the RZB Group at a glance

ZAO Raiffeisenbank is a subsidiary of Raiffeisen International Bank-Holding AG, which in turn is a fully consolidated subsidiary of Vienna-based Raiffeisen Zentralbank Österreich AG (RZB). RZB is the parent company of the RZB Group and the central institution of the Austrian Raiffeisen Ban­ king Group, the country’s largest banking group by total assets with the widest local distribution network.

RZB and Raiffeisen International have time and again underpinned their reputation as early movers and pioneers in CEE, having founded the first subsidiary bank in Hungary already in 1986, three years prior to the fall of the Iron Curtain. In more than 20 years of market presence, ten banks were founded and an- other ten were acquired. The resulting network covers the region with universal banks in the following 15 markets, ser- • Albania Raiffeisen Bank Sh.a. vicing more than 14.7 million customers • Belarus Priorbank, OAO in over 3 200 business outlets. • Bosnia and Herzegovina Raiffeisen Bank d.d. Bosna i Hercegovina Raiffeisen International acts as these • Bulgaria Raiffeisenbank (Bulgaria) EAD banks’ steering company, owning the • Croatia Raiffeisenbank Austria d.d. majority of shares (in most cases 100 or • Czech Republic Raiffeisenbank a.s. and eBanka, a.s. almost 100%). Furthermore, many fi- • Hungary Raiffeisen Bank Zrt. nance leasing companies (including one in Kazakhstan and in Moldova) are part • Kosovo Raiffeisen Bank Kosovo J.S.C. of the Raiffeisen International Group. • Poland Raiffeisen Bank Polska S.A. RZB owns about 70% of Raiffeisen Inter­ • Romania Raiffeisen Bank S.A. national’s common stock. The balance is • Russia ZAO Raiffeisenbank free float, owned by institutional and re- tail investors. The company’s shares are • Serbia Raiffeisen banka a.d. traded on the Vienna Stock Ex­change. • Slovakia Tatra banka, a.s. • Slovenia Raiffeisen Banka d.d. Raiffeisen International achieved anoth- • Ukraine VAT Raiffeisen Bank Aval er record result for the full year 2008: the group’s consolidated profit (after tax and minorities) rose by 17% to EUR 982 million (compared with the same period in 2007). The balance sheet total was EUR 85.4 billion at year-end, also up 17%. On the balance sheet date, nearly 63 400 employees serviced more than 14.7 million customers in over 3 200 business outlets.

Founded in 1927, RZB provides the full range of commercial and investment banking services. It is Austria’s third largest bank. As of 31 December 2008, the RZB Group’s balance-sheet total amounted to EUR 156.9 billion, up 14% compared with year-end 2007. While the operating result hit another record high, the effects of the financial market and bank crisis brought about a decrease in profits. Consequently, profit before tax declined by 60% to EUR 597 million. On the reporting date, the Group employed a staff of 66 650 worldwide.

In addition to its banking operations — which are complemented by a representative office in Russia (Moscow) — RZB runs several specialist companies in CEE offering solutions, among others, in the areas of M&A, real estate development, fund management and mortgage banking.

18 Raiffeisen International and the RZB Group at a glance

In Western Europe and the USA, RZB operates a branch in London and representative offices in Brussels, Frankfurt, Madrid, Milan, Paris, Stockholm, and New York. A finance company in New York (with repre- sentative offices in Chicago and Houston) and a subsidiary bank in Malta complement the scope. In Asia, RZB runs branches in Beijing (with representative offices in Harbin and Zhuhai), Xiamen and Singapore as well as representative offices in Ho Chi Minh City, Hong Kong, Mumbai and Seoul. This international pres- ence clearly underlines the bank’s emerging markets strategy.

RZB is rated as follows (as of April 2009):

• Standard & Poor’s Short term A-1 Long term A • Moody’s Short term P-1 Long term A1

19

Raiffeisenbank Cossack Filigree

Cloisonné, or filigree, is an ancient artistic metalworking method. In Rus (ancient Russia), this craft was long famous, but it has be- come a rarity today. In the Nizhniy Novgorod Region’s village of Kazakovo, this jewellery technique is preserved to this day. Here, making use of the old masters’ unique experience, artists ”twist” vases and cups, boxes and cup holders, women’s jewellery and chalices, and lamps and cases for icons out of metal. Cossack filigree is distinguished by its cleanliness of line and elegance of workmanship. The design is created from smooth or twisted cop- per wire according to a drawing on paper, to which separate de- tails of the design are glued. Then the object is sprinkled with silver soldering alloy and hard-soldered. The paper burns away during the soldering, and the openwork strands are soldered to each oth- er, turning into strong, decorative lace. Finally, the ornament is silvered. When working on the decoration, the artists pay attention not only to the beauty of the curves, but also to the design made by the gaps in the wire: the ornament must not be overloaded with details; it must remain light and airy. Vision and Mission

Vision and Mission Vision

We are the leading universal bank across Russia for all customers caring for quality.

Mission

• We seek long-term customer relationships.

• We provide a full range of high quality financial services throughout Russia.

• We co-operate closely with all members of RZB Group.

• We achieve sustainable and above-average return on equity.

• We empower our employees to be entrepreneurial and foster their development.

22 Human Resources Policy

Human Resources Policy

Fast Business growth and expansion of the sales network confirmed the Human Resources strategy of Raiffeisenbank to focus on attraction and retention of high performers. HR concentrated therefore in 2008 on new recruitment approaches, effective retention measures and new ways to enhance engagement and loyalty of employees.

Number of Employees A record number of new employees were hired for retail client service during 2008 due to the rapid development of the retail 12000 banking area. In order to attract young

10 731 professionals, Raiffeisenbank continued 10000 to use a special training program for re- 9 217 tail business for university graduates. 8000 During 2008 142 probationers who suc- cessfully passed all trainings were per- 6000 manently hired by Raiffeisenbank.

4000 In 2008 the hiring process for a new call center in Krasnogorsk was successfully 2 595 2000 completed, 119 additional Call Center agents started their work with Raiffeisen­ bank and effectively and quickly provide 0 remote service to the bank’s clients.

2006 2007 2008 In 2008 Raiffeisenbank continued with Source: Raiffeisenbank internship programs preparing junior pro­ fessional staff for positions in Risk and Credit Management, Corporate Banking & Corporate Finance as well as Internal Audit. By the end of the year the Bank signed permanent labour contracts with 12 successful participants of these programs.

A new transparent program for internal job rotation offers high performing employees the possibility to con- tinue their career in different areas of the bank.

During 2008 the regional headcount of Raiffeisenbank increased 20%. An affiliate in Bashkortostan and more than 20 additional offices opened their doors to the public, amongst them also in new cities, where the Bank was not present before, such as Petrozavodsk, Ufa, Chita, Angarsk and Gubkin. The most signifi- cant event was the restructuring of regional branches: as a result all affiliates work under one identical or- ganizational structure, which streamlines business processes.

The introduction of a common HR information system as well as a common Regional Recruitment Database has helped to improve administrational as well as recruitment processes throughout the regions.

In June 2008 the first HR conference in the history of ZAO Raiffeisenbank was held in Sochi, where HR representatives of the Bank exchanged experience, information and took the chance to elaborate plans for future development.

”Pay for performance” — under this theme in 2008 new incentive schemes were developed and existing schemes were reviewed for their effectiveness to motivate employees to top performance and achieve busi- ness results.

The compensation system, which is based on an internal job classification system and employment market data, was developed already in 2007, and implemented in 2008 in Moscow and the regions. Continuous

23 Human Resources Policy

Number of Employees in Moscow and in the Regions monitoring of labour market developments not only helps Raiffeisenbank­ to offer com- petitive remuneration within market reali- 6000

5 769 ties, but also serves as an important basis for the budgeting process. 5000 4 962 4 763 4 454 4000 At the beginning of the year a tender was held to review three types of insur- 3000 ance provided to employees. As a result Raiffeisenbank employees benefit from 2000 professional insurance support through- 1 759 out all regions, where Raiffeisen offices 1000

836 are represented.

0 In personnel development main focus ar- 2006 2007 2008 eas in 2008 were: performance manage- ment process introduction for management Source: Raiffeisenbank Moscow Regions (Moscow and regions); executive and mid- dle management development. Before the beginning of the given projects, criteria we­ re specified according to which the success of the events held could be evaluated.

In performance management RI cultural competencies were introduced as the integral part of the process and basis for leadership competencies development. Approximately 30% of top executives have started execu- tion of their development plans based on individual needs and competencies. Over 250 middle managers of the bank participated in a middle management modular development program. Besides providing a full spec- trum of managerial techniques, participation in the program enables Managers to have common understand- ing of management, speak one language and contribute to enhancement of corporate culture in the bank.

In 2009 in the area of personnel development the strategic focus will stay the same though different tools and techniques may be applied (i.e. more focus on on-line learning, instructional design and internal work- shops versus external delivery of training).

In the year 2008 the Training centre, created in the middle of the 2007, continued its development: 2 em- ployees were certified by Raiffeisen International as master trainers, which gave them the right to certify internal trainers for conducting standard trainings, including RI sales trainings; a team of part-time trainers was set up and educated. There are now more than 110 part-time trainers who combine their current re- sponsibilities with delivering training for their colleagues. Three fully equipped training centers were opened in the regions.

Special attention was given to distance learning — in October the new training portal successfully started to function. On the portal every employee of the Bank may find all the information regarding in-class and distance trainings, registration rules and training centre team. Nowadays more than 5 500 employees in Moscow and the regions are active users of the portal. In 2008 27 new eLearning courses and tests were created and launched.

In the last year one of the priorities was building up an education system for retail employees. Obligatory newcomers’ training programs for front-office employees and for direct sales agents were designed and implemented through-out all Russia; Account Managers in Moscow and all cities where the Bank is repre- sented attended a two-day training ”Sales is the best service”; the project of coaching and sales manage- ment trainings for retail managers of all levels was started.

Also the work of creating internal training programs for other divisions begun (such as SME, cash opera- tions, retail lending etc.).

24 Human Resources Policy

Overall in 2008 the training center team created more than 30 new product and soft skills trainings, de- signed and published the training catalogue on the portal. More than 5 000 employees participated in about 1200 training events delivered by internal trainers. More than 1 000 employees attended 720 ex- ternal trainings in Russia and abroad.

With the changed situation on financial markets in the last quarter of the year the HR approach was redi- rected from mass recruitment to internal reallocation of resources according to business volumes.

The year 2008 was characterized by restructuring and reorganisation efforts as well as by a strengthening of Raiffeisen corporate culture. Raiffeisenbank relies on an atmosphere of mutual trust and support among employees to see future challenges as a chance for improvement.

25

Raiffeisenbank Northern Russian Embroidery

The embroidery of the Russian North is not simply a very rich part of the culture of the Russian people. It is a genuine treasure trove for the study of the Slavs’ myths and religion, their history and ceremo- nies. In old pieces of embroidery, we can see the world-view of our ancestors, their beliefs and cults, their prayers for happiness, good crops, and help with life’s difficulties. One of the functions of the de- signs was to give magical protection from evil spirits. This is why ev- ery picture has its own interpretation and every sign and symbol has a certain meaning. The Syrinx, a bird from fairy tales, symbolizes the desire for goodness and prediction of the future; a many-branched tree with fruits depicts a life of paradise. A cock indicates the arrival of morning and the rising of the sun, which, aided by a swan, travels its nightly path under the earth through the other-worldly sea. The designs made use of plant, geometric, and cult designs as well as de- pictions of animals. They were used to decorate garments, head- dresses, towels, aprons, and table runners. The most-used colour in the embroidery was red; the word ”red” carried the connotation of ”pretty” in older forms of the Russian language. Anti-Money Laundering Policy

Anti-Money Laundering Policy

Throughout its history, ZAO Raiffeisenbank has treated its reputation as one of its most valuable assets, and therefore has taken all the necessary measures to protect the business reputation of the Bank and of its clients.

The Bank’s policies on counteracting the legitimisation of criminal proceeds (money laundering) and the financing of terrorism pursue the following aims in order to reduce potential risks of compliance*:

• Preventing any use of the Bank’s products and services as an instrument for criminal activities, including money laundering, the financing of terrorism, fraud and corrupt practices;

• Protecting the business reputation of the Bank and its customers.

At Raiffeisenbank, the system of measures aimed at counteracting the legitimisation of criminal proceeds (money laundering) and the financing of terrorosm are among the most important components of its internal control. This system has been developed in accordance with Federal Law No. 115-FZ of 7 August 2001, ”Concerning the Counteraction of the Legitimisation (Laundering) of the Proceeds of Crime and the Financing of Terrorism” as per the latest amendment to the law, corresponding regulations of the Bank of Russia, the Bank’s own standards and RZB Group standards.

As required by the applicable laws of the * The notion ”compliance risk” is understood in accordance with the Basel Committee’s require- Russian Federation and its own internal ments as a risk of legal or political sanctions, financial losses, or damage to business reputation, procedures, the Bank has developed a set which the bank may incur as a result of a failure to comply with the relevant laws, guidelines, of measures to control compliance risks rules, standards or codes of conduct established by self-regulating organizations and applied and implement a programme of the fol- to banking transactions. lowing actions to counteract money laun- dering and the financing of terrorism:

• Approving and implementing rules and programmes of internal control for the purposes of counteract- ing the legitimisation of criminal proceeds (money laundering) and identifying beneficiaries;

• Unifying approaches to the structuring of control in branches and internal subdivisions of the Bank;

• Ensuring the involvement of all Bank employees in counteracting the legitimisation of criminal proceeds (money laundering) and terrorist financing;

• Improving relevant software for the timely identification of transactions subject to mandatory control, as well as other suspicious transactions;

• Conducting regular compliance trainings using state-of-the-art technologies, including multimedia and Internet, for the Bank’s employees.

We put into practice relevant procedures and the ”know your client” principle in strict adherence with regu- lator requirements, Russian and Western confidentiality standards, and the rules of non-disclosure of bank- ing secrets.

The Compliance Control Department is responsible for the development and implementation of the Rules of Internal Control for the purposes of counteracting the legitimisation of criminal proceeds (money launder- ing) and the financing of terrorism, special control programmes, other internal measures required to achieve the said purposes, and for filing the information required by Federal Law No. 115-FZ and regulations of the Bank of Russia with the competent authorities.

28 Anti-Money Laundering Policy

The Bank operates in accordance with the applicable laws of the Russian Federation, regulator require- ments, regulatory norms internal to the Bank, instructions of the RZB Group, guidelines of the Association of Russian Banks, with a special focus on

• Developing and improving computerised storage and processing of client forms, automated detection of transactions subject to mandatory or additional control;

• Improving the automated data collection system;

• Improving the system for detecting insincere customers, both private and corporate;

• Continuing to train our personnel, as the awareness of every individual employee is of primary impor- tance for the success of this effort.

One of the top priorities of the compliance control system in the years to come will be meeting the require- ments of Federal Law No. 115-FZ regarding the identification of clients and the detection of transactions subject to mandatory or additional control for the purposes of counteracting the legitimisation of criminal proceeds and the financing of terrorism.

29

Raiffeisenbank Mezen Painting

No one knows how or when this ancient art of painting on wood surfaces came into being. It is only known that Mezen painting as a craft appeared in the 19th century in the Arkhangelsk Region by the Mezen River, which is on the border between the taiga and the tundra. In the past, only men created Mezen paintings. They used it to decorate spinning wheels and household effects, such as buck- ets, trunks, boxes, and hampers. This painting’s simple, original or- namentation is alluring and dazzling. The symbols of beasts, birds, fertility, harvests, fire, and the sky were originally used in cave paint- ings. The favourite designs of the people of the ancient North were figures of deer (a symbol of the genesis of new things) and horses (a symbol of the sun). Drawn in red and black using a special stick, they literally appear from out of geometric designs. Even the small- est details in the patters — stars, crosses, and lines — have their own meanings here. To this day, the works of Mezen’s artists exude goodness and wisdom, making the world around us brighter, for these masters put their hearts and souls into every piece they make. Segment Reports

Segment Reports Corporate Customers

The first half of the year was marked by growth in various industries, which affected the demand for bank- ing products in the corporate segment. The Bank continued active lending operations in various sectors and areas, with a special focus on further improvement and development of lending programmes for small and mid-sized businesses.

However, the second half of the year, particularly the fourth quarter, demonstrated the negative effects of the global financial crisis on the Russian economy: sales dropped in certain industries, a general down- swing in production began, companies had problems repaying loans and servicing bond issues, an acute liquidity crisis delayed payments between companies, and receivables grew. All these challenges were ag- gravated by tightening demands on borrowers, skyrocketing interest rates, and growing currency risks, as well as a lack of sufficient liquidity in the banking system. It is important to mention that in this period the state became the main player on the Russian financial market and the primary provider of liquidity to the banking system. The state, as represented by the Bank of Russia, the Ministry of Finance, and the Russian Government, increased its influence on the country’s financial system.

Number of customers, December 2007 In the second half of 2008 Raiffeisenbank launched a plan of action aimed at en- hancing quality control for its current loan portfolio, analyzing industries in detail and identifying potentially problematic Corporate customers operations and borrowers, searching for 10 447 new high-quality borrowers, and ensur- 15% ing higher-security lending transactions. The Bank’s comprehensive approach to selecting clients and lending transactions, as well as a well-developed risk manage- ment system, have proved that, economic SME customers 60 169 challenges notwithstanding, the Bank has 85% managed to attain most of its goals in

Source: Raiffeisenbank a timely manner and with high-quality per­ ­formance.

The figures provide even more proof that Number of customers, December 2008 we chose the right course and made ac- curate forecasts:

• Our corporate client base increased Corporate by 23% relative to last year and reached customers 12 882 customers. 12 882 17% • In absolute terms our corporate lo­ ans portfolio reached RUR 258 billion, a 22% growth relative to 2007.

The expansion of the corporate lending SME customers 62 411 business and active promotion of liquidity 83% management products stimulated growth

Source: Raiffeisenbank in the Bank’s non-risk transactions. For example, the volume of custo­mer ­ac­co­unts

32 Segment Reports

Corporate and SME assets (not incl. Fl, PUBL) balances rose by 33% relative to De­ cember 2007 while the commission in- come from corporate customers increased RUR, bln 300 by nearly 23%.

250 258 Project Finance 200 211.9 22%

150 As in previous reporting periods, major transactions made in 2008 have en- 100 hanced the commercial real estate port- 50 folio (construction and refinancing of existing projects). 0

Source: Raiffeisenbank 2007 2008 The stability and quality of the Bank’s loan portfolio proved that it has been pursuing a successful policy in this seg- Corporate and SME liabilities (not incl. Fl, PUBL) ment during the financial crisis. The share of project finance transactions in the Bank’s loan portfolio has remained lar­ RUR, bln 140

138.9 gely unchanged relative to last year at

120 33% the level of 27%.

100 104.4 Of the new project finance transactions,

80 it is worth mentioning a few that are most significant in terms of their structure, busi- 60 ness prospects, and business strategy: 40 • A loan of USD 28 million to ZAO 20 Krasnaya Roza with a ten-year maturity 0 to refinance the costs of construction of Source: Raiffeisenbank 2007 2008 Krasnaya Roza, a class A business cen- tre in the Central Administrative District of Moscow.

• A credit line of USD 14 million for a term of up to 8.5 years to ZAO Prom­complex in order to construct a trade centre in Lobnya, Moscow Region.

Structured and Trade Finance

In the last few years, Raiffeisenbank has created a diversified loan portfolio in the segment of structured and trade finance. In 2008, as in previous years, the Bank actively financed export and import operations in Russia’s traditionally strong industries: oil, gas, ferrous and non-ferrous metals, and coal production.

Along with export and import operations, the Bank offers trade financing on the domestic market. This seg- ment was marked by growing client needs in 2008, which brought a 12% increase in the loan portfolio rela- tive to 2007. Structured loans to transportation companies make up the largest share of the structured and trade finance portfolio.

33 Segment Reports

Composition of the Structured and Trade Finance Portfolio by Industry

Textile Pulp and paper 0.4% 1% Transport 11% Agriculture, food production 6%

Crude oil Chemicals and refined products 4% 23%

Coal production 11% Non-ferrous metalls 10%

Construction 9%

Ferrous metalls 25% Source: Raiffeisenbank

Structure of the Portfolio by Transactions

Import 2%

Export 36%

Domestic trade 62%

Source: Raiffeisenbank

34 Segment Reports

Sectoral Structure of Midmarket Leanding Program Clients in 2008 Medium-size enterprises lending Other industries Provision of loans to mid-sized businesses Transport, storage 11.7% was among the Bank’s strategic priorities and communication 1.7% in 2008. The Bank continued to expand its lending programme for mid-sized busi- nesses to cover 40 Russian regions. Amid Construction financial instability Raiffeisenbank has 5.6% taken a new approach to financing of mid-sized business which makes it possi- ble to build a high-quality loan portfolio while maintaining the optimum level of credit­­ risks. Manufacturing 27.7% Despite all the negative trends in the lend- Wholesale and retail trade; ing sector related to the growth of interest repair of motor vehicles, rates offered by most financial institutions motorcycles and personal and household goods and, as a result, clients’ desire to minimise 53.4% their loan debt burden, the Bank’s mid-

Source: Raiffeisenbank sized business loan portfolio in 2008 was more than 10% higher than in 2007.

Loans to Small and Micro Enterprises Loans and services for small and micro businesses have been among top priorities of the Bank’s development. The Bank offers standard products which meet the needs of any industry and of any company at almost any stage of development. In 2008 the Bank’s main goals were to optimise its business processes and to create a framework for further development.

For individual entrepreneurs and companies with annual sales below RUR 35 million, the Bank expanded its product line and extended loan maturities. Micro businesses received an option to obtain unsecured loans or to raise secured finance in large volumes. The introduction of the scoring model helped substantially reduce the time required to approve a loan. Every month the Bank approves more than 130 loan applications from micro businesses and individual entrepreneurs.

Changes to the product line and optimised business processes resulted in a 21% growth in the small business loan portfolio in the second half of 2008, average loan amount reached RUR 5 million.

As it continues to offer its clients high-quality service and finance options in more than 90 branches through- out the Russian Federation from Kaliningrad to Kamchatka, Raiffeisenbank has continuously developed its lending programme for small and micro businesses in all the regions where it has a presence.

Documentary Business

As of the end of 2008 the Bank’s portfolio of letters of credit and guarantees exceeded RUR 31.4 billion, a 77% growth relative to 2007. In 2008 Raiffeisenbank offered its clients various options to finance the import of equipment based on letters of credit. These options were granted to companies working in metal- lurgy, mining, chemical production, transportation, wholesale, and retail. The amount of import letters of credit grew by 160% in 2008 relative to the previous year.

Banking guarantees for both suppliers of various products or equipment and clients’ customers under con- tracts of supply of goods or services were in high demand among Raiffeisenbank’s clients in 2008.

35 Segment Reports

Letter-of-credit financing by industry Another rapidly developing area of tra­ de finance was the issuance of guaran- tees to customs and tax authorities. The Others volume of guarantees issued to customs Transportation equipment 7% and tax authorities reached RUR 8.3 bil- manufacturers 3% lion in 2008, a 193% increase relative Mining industry to 2007. 6%

Acquisition of real estate, Regional Expansion M&A deals Metallurgy 10% 32% In 2008 Raiffeisenbank branches contin- ued to develop their services for corpo- rate clients. Loans issued to companies in the regions served by the Bank rose by Wholesale and retail trade 22% from the totals of 2007, and ex- 10% ceeded RUR 106 billion; balances on Electrification, gas and water supplies corporate accounts opened at Raiffeisen­ 17% bank branches reached RUR 25 billion, a 40% growth relative to 2007. Chemical industry 15% The divisions in Sibirsky and Uralsky Re­

Source: Raiffeisenbank gional Centres demonstrated the most dy- namic growth in 2008. Their corporate loan portfolios made up 12% and 14% share, respectively, of the total corporate loan portfolio of the Bank. Severo-Zapadny Regional Centre has once again confirmed its status of the most well-balanced and diversified branch in the whole regional network with an 8% share of the total corporate loan portfolio and 6% of corporate account balances.

In 2008 the Bank continued the integration process at the regional level. An important step on the road to the implementation of the integration tasks that were set was the operational merger of branches in cities where, as a result of the legal merger of ZAO Raiffeisenbank and OAO Impexbank, they continued to func- tion as formally independent structural amalgamations. Last year the Bank completed operational mergers of its branches in Saint Petersburg and Ekaterinburg, and in 2009 it plans to merge more branches in Novosibirsk, Perm, Nizhny Novgorod, Samara, Chelyabinsk, and Krasnoyarsk. Along with raising the efficiency of the branch network management, one of the main tasks of the merger is to make a standard product line for the Bank’s clients in the regions and to raise the quality of service in the regional network.

36 Segment Reports

Corporate Finance and Investment Banking

Corporate Bonds

Based on the results of 2008, ZAO Raiffeisenbank was ranked third among arrangers of corporate rouble bond issues by the Cbonds information agency (the rating does not include bank bonds).

Last year the Bank acted as an arranger of 14 corporate bond issues with a total par value of more than RUR 78 billion. Raiffeisenbank was an arranger of a number of landmark deals on the rouble bond market in 2008:

• A programme of bond issues by OAO Mobile TeleSystems, one of the largest cellular operators in Russia and the CIS, worth RUR 30 billion;

• The second rouble bond issue by OAO ChTPZ, one of the largest tube manufacturers in Russia and the CIS, worth RUR 8 billion;

• A rouble bond issue by OAO Vympelcom, one of the largest cellular operators in Russia and the CIS, worth RUR 10 billion;

• The third bond issue by OAO Wimm Bill Dann Food Products, the largest dairy producer in Russia and a leader in soft drinks and baby food production, worth RUR 5 billion;

• The second and third bond issues by JSCB MBRD (OAO), a universal commercial bank owned by OAO AFK Sistema; the total value of the bond programme reached RUR 6 billion;

• The only floating-rate bond issue in 2008 on behalf of OAO Severo-Zapadny Telecom, a leading com- munications operator in the Severo-Zapadny Region;

• The second bond issue by OOO United Confectionary Manufacturers-Finance, a 100% subsidiary of OAO Holding Company United Confectionary Manufacturers, the largest confectionary producer in Russia, worth RUR 3 billion.

In the second half of 2008, as a result of unfavourable developments on all financial markets, many Russian companies faced problems in refinancing their bonds. To solve this problem, the Bank started of- fering assistance to its clients in restructuring of their bond debts. On 17 December 2008 the Bank suc- cessfully completed the first-ever public restructuring of a RUR bond issue — the bond of OOO TOP- KNIGA, a value of RUR 1.5 billion. ZAO Raiffeisenbank was appointed the restructuring advisor.

Syndicated Loans

In 2008 Raiffeisenbank acted as mandated lead arranger of 7 club deals and syndicated loans amounting to more than USD 400 million for its clients, both corporations and financial institutions. While financial markets provided restricted liquidity for the borrowers, Raiffeisenbank continuously assisted its clients in ob- taining financing on most favourable terms possible. Among the most noteworthy deals are: USD 150 mil- lion syndicated facility with a five-year maturity provided to OOO GasOilTrade (Tashir Group) to refi- nance the costs of construction of Gasoil Plaza in Moscow, and USD 70 million syndicated loan to Nezavisimost Holding Company OOO (Independence Group) financing the leading car dealer.

The syndicated lending market was affected by the global recession just like other segments of the financial markets; it resulted in substantial reduction in the market volumes in the first half of 2008 while syndications practically came to a halt by the year-end. Taking into account that the syndicated loans market was among the last hit by the economic crisis, it might appear among the first to revive following an overall sta- bilisation of credit markets expected in the end of 2009 — beginning of 2010.

37 Segment Reports

M&A Market

As per experts’ estimate, Russian M&A market exceeded USD 60 billion in the first half of 2008, which was twice as much as the figure for the same period of the previous year. However, starting from the third quarter to untill the end of 2008, M&A activities slowed down substantially due to the growing instability on international financial markets and limited availability of leverage financing.

In 2008 Raiffeisenbank successfully completed raising equity capita of more than RUR 12 billion for TGK- 6 acting as a co-arranger of private placement of the company’s stock. In the first half of 2008 the Bank advised RAO UES on the re-organisation of over 50 regional grid companies during the final pase of the Russian electricity sector restructuring.

38 Segment Reports

Mortgage Agent AHML Raiffeisenbank MTS 2008-1 First Bond Issue Second Bond Issue First Bond Issue RUR 10 000 000 000 RUR 10 000 000 000 RUR 7 930 000 000 Arranger Arranger Arranger December 2008 October 2008 December 2008

МТS Zapsibcombank VimpelCom First Bond Issue First Bond Issue First Bond Issue RUR 10 000 000 000 RUR 1 500 000 000 RUR 10 000 000 000 Arranger Arranger Arranger October 2008 September 2008 July 2008

МТS SZT ChTPZ Third Bond Issue Fifth Bond Issue Third Bond Issue RUR 10 000 000 000 RUR 3 000 000 000 RUR 8 000 000 000 Arranger Arranger Arranger June 2008 May 2008 April 2008

39 Segment Reports

MBRD Gazenergoset United Confectioners Third Bond Issue Second Bond Issue Second Bond Issue RUR 3 000 000 000 RUR 1 500 000 000 RUR 3 000 000 000 Arranger Arranger Arranger April 2008 April 2008 April 2008

Amurmetall MBRD Wimm-Bill-Dann Third Bond Issue Second Bond Issue Third Bond Issue RUR 3 000 000 000 RUR 3 000 000 000 RUR 5 000 000 000 Arranger Arranger Arranger April 2008 April 2008 March 2008

40 Segment Reports

Treasury Operations

2008 proved to be a rather difficult year for both the world financial system as a whole and the Russian financial market as one of its components. The dramatic fall of oil prices, geopolitical tensions in the North Caucasus, and a worsening investment climate considerably decreased foreign investors’ interest in invest- ing in the Russian economy. Capital outflow and foreign investors’ revaluation of investment risks in the Russian economy led to a drop in the stock market’s leading indices. The same factors contributed to the RUR’s devaluation against the dual currency basket, which reached 17% from September to December, while rouble interest rates rose several times.

2008 proved that Raiffeisenbank’s conservative risk-management policy was totally justified. The Bank’s trading strategy-aimed at a lower duration and a higher quality of the bond portfolio, with negligible in- vestments in shares-minimized its losses from the stock market’s revaluation. A high portion of papers on the Bank of Russia’s Lombard list in the Raiffeisenbank’s trading portfolio limited the growth of the cost of fund- ing that position.

Thanks to hedging interest-rate risks through interest swaps, currency forwards, futures, and interest rate futures, as well as compliance with conservative interest-risk limits, Raiffeisenbank not only avoided losses from the considerable growth in RUR rates and kept its interest rate margin at previous levels; the Bank also substantially increased its financial results in 2008.

Treasury operations on currency and money markets continued to provide a stable source of the Bank’s income. One of the leading market makers on the domestic currency market, Raiffeisenbank had regularly played a leading role in this market segment. Derivative transactions demonstrated growth. One of Raiffeisenbank’s top priorities in 2008 was to develop and promote financial instruments which substan- tially broaden clients’ options in hedging both the interest risk and the exchange rate risk. In addition, the Bank had actively offered structured products with higher yields than those of current deposit rates.

Despite the outbreak of the default crisis in autumn 2008, Raiffeisenbank managed to avoid losses from defaults on reverse REPO deals. Due to its reputation as a reliable bank of importance to the Russian finan- cial system, Raiffeisenbank was among the first signatories to the Central Bank’s agreement of guarantee- ing interbank transactions in order to take part in the implementation of federal law No. 173-FZ, ”Concerning Support of the Financial System of the Russian Federation”.

41 Segment Reports

Financial Institutions

Russian Banks

In 2008 Raiffeisenbank continued to develop cooperation with Russian banks with a special focus on re- gional banks. Last year, for example, Raiffeisenbank signed contracts with 20 regional Russian banks for transactions on forex and money markets, as well as on the securities market.

In addition, despite the aggravation of the economic crisis in 2008, which affected both the financial sec- tor and the industrial sector, Raiffeisenbank once again affirmed its leadership role in the arrangement of syndicated loans and bond issues for Russian banks. The Bank’s clients for structured products included OAO Zapsibcombank, OAO Krayinvestbank, CB Loco-Bank (ZAO), JSCB Moscow Bank for Recon­ struction and Development (OAO), CB Renaissance Capital (OOO), and OAO Etalonbank.

In November, in accordance with Federal Law No. 173-FZ of 13 October 2008 ”Concerning Additional Measures to Support the Financial System of the Russian Federation”, Raiffeisenbank and the Central Bank of the Russian Federation signed an agreement under which the Bank now grants short-term inter- bank loans to a large number of Russian banks.

Foreign Banks and International Financial Organisations

As it pursues a policy of close cooperation with both CIS and non-CIS banks, Raiffeisenbank has succeeded not only in strengthening relations with its long-time partners but also in expanding the range of its non-resi- dent partner banks. The Bank continues to focus on its traditional spheres of cooperation: correspondent bank relations; master agreements that provide for various treasury transactions, including instruments for mitigating market risks, which are highly relevant for the current situation; establishing mutual limits for both treasury transactions and trade finance.

For example, the credit lines obtained in 2008 enabled the Bank to considerably increase the volume of let- ters of credit confirmed and financed by prime banks of Europe, the U.S. and Asia, which resulted in com- plete satisfaction of clients’ needs. Most noteworthy is the fact that, despite all the negative trends on world markets, our time-tested partner banks continue to maintain their credit lines open to ZAO Raiffeisenbank and offer favourable conditions in today’s environment.

Non-banking Financial Institutions

In 2008 the Bank continued to develop its cooperation with non-banking financial organisations in many fields; the greatest demand was for cash management services and placement of temporarily redundant cash. A considerable number of clients chose Raiffeisenbank to arrange centralised payments of staff salaries.

In the first half of 2008 Raiffeisenbank extended its credit line to ZAO Europlan, one of the leaders on the leasing market. The Bank also took part in a syndicated loan to ZAO Investment Company Troika Dialog. Notwithstanding the current situation on financial markets, Raiffeisenbank plans to expand its cooperation with non-banking financial institutions in 2009.

42 Segment Reports

Depository Services

In 2008 Raiffeisenbank strengthened its position on the market of custodial services. According to the an- nual review by Global Custodian (a widely respected publication in the custody business), the Bank’s Securities Operations and Custody Service Department won the highest ranking (Top Rated) among de- pository services providers on emerging markets in 2008-2009. The review is based on a specially devel- oped list of questions offered to depositories’ clients, and our clients’ high appreciation of our activities has once again proven the high quality of our services.

The custodian’s client base experienced further growth in 2008, and the number of processed transactions increased substantially. Relying on our knowledge of the securities market and our high-quality banking operations, we were able to offer individual services to our clients--including structured acquisitions of large stakes of equities--in addition to the traditional range of depository services.

In 2008 the Raiffeisen Group launched a new project — the Securities Services Strategy. The aim of this project is to unify the standards of custodial services and asset management in all Raiffeisen network banks, which means that a Raiffeisenbank’s client in Hungary, for example, will receive the same service in the custody of the Russian Raiffeisenbank. He will be able to use the same document forms, to receive transac- tion statements in the same format, and to make payments at the same tariffs. A successful implementation of the project will improve the quality of service provided by custodians and asset management companies at all banks in the Raiffeisen Group.

43

Raiffeisenbank Palekh

Palekh is the name of a village in Ivanov Region that has become a synonym for the amazing Russian art of miniature painting that appeared here at the beginning of the 20th century. Palekh’s style of lacquer miniatures was derived from the local icon-painting in- dustry and inherited many of its traditions: the smooth lines, the ex- quisitely elongated figures, the delicately painted details, the tem- pura paints, and the abundance of gold. To this day, Palekh masters make use of the old technique of multi-layered painting. The lower layers of paint shine through the thin, transparent upper layers. Be- cause of this, one tone spills into another, and the painting literally shines from within, lending Palekh works a special charm. This kind of work demands constant inspiration and the highest level of ac- curacy and care from the artist. Circle dances, fiery troikas, reapers with sickles, and heroes from fairy tales and epics are all beautifully composed by the masters into paintings on papier-mâché miniature boxes, cases, plates, brooches, and hair clasps. Segment Reports

Public Sector Department

Raiffeisenbank considers cooperation with government authorities and their counterparties as a top priority of the Bank’s business. As of the end of 2008, the Bank considerably strengthened its position in this seg- ment and was ranked fifth on the market of loans to Russian constituents and municipalities.

Last year Raiffeisenbank took an active part in auctions and tenders for granting loans to Russian constitu- ents and municipalities. As of 1 January 2009, the Bank’s government loans portfolio reached RUR 7.9 bil- lion, double the figure of 2007. In 2008 loans granted to government agencies exceeded RUR 9 billion, while loans were repaid to the sum of RUR 4.9 billion.

The Bank continues to develop its cooperation with federal and municipal agencies. It works on implement- ing special target programmes, including in the utilities sector. In addition to lending products, Raiffeisenbank offers state-owned companies a full range of top-quality banking services.

In accordance with the Bank’s credit policy, loans to Russian regions and municipalities for a maximum term of 3 years and loans guaranteed by Russian regions and municipalities with a maximum maturity of 4 years are among standard lending transactions performed by the Bank.

In 2008 Raiffeisenbank activated passive operations with Public sector customers, which resulted in ob- taining the status of a lending organisation authorised to attract temporarily redundant cash of the federal budget and government corporations. During 2008, deposits placed at Raiffeisenbank by the Russian Ministry of Finance as a result of selection by tender totalled RUR 86 billion, and the deposits of the Foundation for Promotion of Reforms in the Utilities Sector exceeded RUR 12.5 billion.

46 Segment Reports

Retail Customers

Customer Communication channels

Branches In 2008 the Bank opened 8 new branches in Moscow: Kolomenskoye, Mytishchi, Moscow-City, Podol­ skoye, Sadovo-Triumphalnoye, Semyonovskoye, Odintsovo, Dmitrovskoye. As of the end of 2008, Raif­ feisenbank’s network in Moscow comprised 60 branches.

The Severnaya Stolitsa affiliate in St. Petersburg opened 9 new branches last year: Staronevskoye, Kirochnaya Ulitsa, Ligovsky Prospekt, Vasileostrovskoye, Sadovaya Ulitsa, Tekhnologichesky Institut, Maly Prospekt, Moskovsky Prospekt, and Leninsky Prospekt. Severnaya Stolitsa is the Bank’s largest regional di- vision, with 17 branches in various districts of St. Petersburg and an operations office in Syktyvkar.

Other Russian cities are also covered by the development and optimisation of the branch network. The branch network has grown and improved in other Russian cities as well. The Sibirsky division in Novosibirsk, for example, opened two additional branches, Tsentralny and Studenchesky; the Uralsky division in Ekaterinburg also opened two additional branches — Plotinka and Na Radishcheva; the Povolzhsky division in Nizhny Novgorod opened the Avtozavodsky branch, while the Volgo- Vyatsky branch in Kirov opened the Tsentralny branch. In July 2008 the Bashkortostan division opened in Ufa.

In 2008 our client base increased considerably. At the end of the year we had more than 1.6 million indi- vidual customers.

According to Interfax-CEA, as of the end of 2008, Raiffeisenbank has Russia’s sixth-largest amount of pri- vate deposits, and the sixth-largest retail loan portfolio.

Sales Department

In late 2007 we launched the Sales Force Effectiveness (SFE) project, which aims to achieve higher sales efficiency in the Bank’s network, to change the procedures of selling banking products, to better identify client needs, and to increase cross-sales. Furthermore, the project is designed to establish and maintain long-term relationships with our clients.

Raiffeisen International has been running the SFE programme for more than three years, and in this period it has been implemented successfully in 12 countries. SFE’s methods and tools have led to considerably higher sales in all banks of the Group.

In April 2008 a pilot project was successfully launched in six branches of Raiffeisenbank in Moscow, Saint Petersburg, Kazan, Nizhny Novgorod and Saransk. Thanks to an improved sales procedure and the subsequent growth in client interest, sales of the Bank’s products have increased significantly.

From October 2008 to February 2009 the programme is being implemented in the Urals Region. In 2009 Raiffeisenbank plans to introduce SFE to its entire network. A successful launch of SFE will help the Bank develop a result-oriented network which can efficiently adjust its priorities in response to clients’ needs and the market situation. A focus on sales continues to be one of the Bank’s top priorities, along with an empha- sis on high-quality service.

The Loans, Investment, and Pension Products Sales Group

In 2008 the Loans, Investment, and Pension Products Sales Group in Moscow enjoyed success with direct sales of consumer loans (49% of total sales) and credit cards (over 50% of total sales). With the support of

47 Segment Reports

Raif­fei­sen­bank’s training centre, the best members of the sales group were recruited as part-time instructors to train others.

In April 2008, members of the sales group in regional branches started actively selling the Bank’s products and services, and by September a unified regional network had been set up with a bonus plan for employ- ees in the regions.

In 2009, the Bank plans to launch the DSA Excellence programme to promote the sales of credit cards, investment, and pension products. Raiffeisenbank intends to sell a wide range of retail products through its direct sales channel.

Corporate Sales Group

In 2008, the Corporate Sales Group continued to attract new customers for its payroll services, which al- lows companies to transfer salaries directly to their employees’ bank accounts.

Improvements came to the payroll product in 2008 thanks to the ABC4 system, which made it possible to automatically transfer funds to classic card accounts and offer an SMS-alert service to electronic card hold- ers. In addition, special tariffs for corporate customers were unified.

Payroll Support Group and Back-Office Group

In 2008, the Bank opened over 88 800 payroll accounts. The new division of the functional resulted in more efficient operations and better-quality service.

In 2009, the Group’s key priorities will be to attract new payroll projects and to increase client loyalty through higher-quality service and cross-sales.

ATMs

In 2008 Raiffeisenbank completed one of its main integration goals by transferring all of its ATMs to a sin- gle processing platform.

Today Raiffeisenbank’s ATM network has more than 1 400 ATMs in 45 regions of the Russian Federation. Each month the Bank’s ATMs are used to make more than 4 million transactions, 5% of which are payments for mo- bile communications, television and Internet; the year-on-year growth of these payments exceeds 60%.

A network of cash-in ATMs which allow clients to make instant cash deposits has been developed in tan- dem with Raiffeisenbank’s branch network. Today Raiffeisenbank has 337 cash-in machines, which ac- count for 25% of its total ATMs.

On average deposits at cash-in ATMs make up 3% of total transactions each month. In 2008 Raiffeisenbank replaced all obsolete ATMs which required an envelope to make a deposit with the cash-in machines.

In November 2008, the Bank also completed the migration of all sales terminals to a unified processing platform, which lowered the operational costs of the acquiring network’s maintenance and increased the quality of the Bank’s services for retailers.

Call Centre

Raiffeisenbank’s Information Centre has several functions. It provides 24-hour card support services, cus- tomer support for individuals, and actively promotes the Bank’s products through telephone sales.

In 2008 the Information Centre processed nearly 4.5 million calls, an 80% growth year-on-year. Almost 1 mil- lion outgoing calls were made and 33 000 messages were processed. In addition, the Information Centre is

48 Segment Reports

responsible for regularly monitoring and improving the quality of service. For several years running Raiffeisen­ bank’s Information Centre in Russia has been the busiest one in the Raiffeisen Group in terms of incoming and processed client calls, yet in 2008 the Centre’s staff grew by only 28% relative to the end of 2007.

In 2008 clients were offered the new IVR service (an automatic telephone response system).

Distance-Banking Services

Raiffeisenbank’s official site at www.raiffeisen.ru offers clients both general information and specific data on the Bank’s divisions, products, and services. It has numerous interactive features, including applications, forms, and calculators. In 2008 we launched additional promo-sites to advertise banking products.

As of the end of last year, site traffic at www.raiffeisen.ru exceeded 2.3 million hits per month, or a 100% growth in 2008. Today our website is among the leading banking sites in terms of traffic and banking- themed searches.

Raiffeisen CONNECT and Electronic Office, the Internet banking systems for individual customers, have also continued to develop successfully. In July 2008, the design of Raiffeisen CONNECT was updated to comply with the international standards of the Raiffeisen Group. In October 2008, we introduced a new ”Payment for Services” feature in the Raiffeisen CONNECT online banking system. Thanks to this new func- tion, customers can make online payments for mobile communication services without any fees. In the near future, the Bank’s clients will have the option to make payments for Internet, television and utilities.

At the end of December 2008, Raiffeisen CONNECT and the Electronic Office had more than 285 000 users. In 2008, over 650 000 active transactions were performed (2.5 times more than in 2007), primarily rouble payments and domestic transfers.

In 2008 the Bank sent 20 million text messages to its clients, and the number of cards connected to the Raiffeisen Mobile system rose by 85% to reach 215 000.

The payment system for Raiffeisenbank’s corporate customers (the Bank-Client electronic banking system) offers our clients a range of primary services. In 2008, more than 7 million payment orders were executed through the Bank-Client system.

Service Quality

In 2008 Raiffeisenbank won The Retail Finance’s award for high-quality service among retail banks. A rat- ing published by Dengi magazine in June 2008 based on the opinion of ”mystery shoppers” at Moscow branches ranks Raiffeisenbank second in service quality among leading retail banks. This is a good result indeed as compared with 2007 (when the Bank took seventh place in the same rating), but it also chal- lenges us to double our efforts.

High-quality service is ensured not only by competent and friendly staff who are in direct contact with cli- ents but also by regular improvements to banking processes. For the Bank’s employees, the last year de- manded composure, adaptability, and a willingness to constantly learn new skills as technological integra- tion continued.

One of the most important events of the last year was the introduction of an integrated electronic base to the entire branch network in order to register and route client calls regarding the quality of service. To en- sure maximum attention to our clients’ comments and criticisms, Raiffeisenbank has started to conduct spe- cial hearings and round table discussions which helps pose questions from the client’s point of view and find reasonable solutions.

Clients’ ever-increasing demands for fast, high-quality service and informational transparency help the Bank not only make technological improvements but also maintain its personnel's commitment to high

49 Segment Reports

standards and a willingness to exceed clients’ expectations. In 2008 our Service Quality Management department received over 250 letters of thanks to individual employees of our branches, the Information Centre, the Direct Sales department, and the Distance-Banking Services. About 200 'Master of Service' diplomas were granted to employees who are best in service and help to create a warm atmosphere of support and co-operation in the client contact points.

The Bank held successful short-term campaigns to promote the quality of service in several cities: ”Twenty Days to a Good Habit” (Moscow, Saint Petersburg, Novosibirsk), ”Ten Days in the Piggy-Bank of Success” (cities of the Central Region), ”Fifteen Steps towards Client” (cities of the South Volga region), and ”A Reason to Be Proud” (Kaliningrad).

Products

Raiffeisenbank offers its customers a full range of retail products: current accounts, fixed-term deposits, debit and credit cards, money transfers, currency exchange, sale and purchase of travellers’ cheques, car loans, mortgages, unsecured loans, investment products, safe deposit boxes, and personalized service for VIP clients.

Bank Cards

As of the end of 2008, the total number of cards issued by Raiffeisenbank reached 1.4 million–40% more than in 2007. The growth of the debit card portfolio helped raise the monthly debit card turnover to USD 900 million, which is 30% more than in 2007.

The total market share of Raiffeisenbank’s cards in retail transactions in the Russian Federation remains at the same high level as in 2007 — 12%.

As a principal member of the VISA International payment system, Raiffeisenbank has launched a pilot VbV (Verified by VISA) service for a certain number of its bank cards. This service ensures safe Internet transac- tions with Raiffeisenbank’s cards using VISA International’s technology, which is designed to minimise fraudulent transactions. In 2009, this service will be offered to all of the Bank’s cardholders.

Credit Cards

In 2008, Raiffeisenbank’s credit card portfolio grew by nearly 90%. This growth was sped by start of sales of credit cards in former Impexbank branches in February 2008, and by the opportunity to apply for a credit card in all regions where Raiffeisenbank has a presence.

A key trend in 2008 was improved quality of service and increased loyalty of the Bank’s credit card holders. For example, in spring 2008 Raiffeisenbank offered a new option to the holders of its Gold credit cards: a special programme called Concierge Service which provides clients with prompt information about trans- port, hotels, restaurants, car-rental services, and leisure activities 24 hours a day, 365 days a year.

The launch of the Retention programme helped reduce the number of closed credit cards by more than 20%.

In autumn 2008 Raiffeisenbank introduced a new co-branded credit card, SkyLink-Raiffeisenbank, in Saint Petersburg and Leningrad Oblast. When making payments with this credit card, clients receive bo- nuses which are subsequently accepted as payment for SkyLink’s services.

Deposits

In terms of private deposits, Raiffeisenbank has confidently entered the top ten Russian banks with a rank of sixth place, according to Interfax-CEA. In December 2008 alone the Bank’s deposit portfolio rose by nearly 18%.

50 Segment Reports

After Raiffeisenbank’s merger with Impexbank in late 2007, the whole line of deposit products has been upgraded. Unifying the product range has been a key objective of the integration process.

Consumers’ preferences changed substantially in 2008. While in the first half of the year the share of term deposits in RUR exceeded 60%, by the end of 2008 it fell to approximately 20%. Many clients promptly changed their preferences in a rapidly changing economic environment and chose foreign currency for their deposits.

In 2008 the Deposit Insurance Agency raised the deposit insurance coverage to RUR 700 000. This step was taken to offset depositors’ concerns, a form of psychological support for clients. It stands to mention that Raiffeisenbank’s customers trust us with deposits that considerably exceed the guaranteed limit.

Mortgage Lending

As of the end of 2008, Raiffeisenbank’s mortgage portfolio rose by 50% vs. 2007 and reached nearly RUR 32 billion. This growth is the result of both the introduction of new mortgage products (e.g. acceptance of the borrower’s common-law spouse as a co-borrower) and the development of new services such as a mortgage specialist’s visit to the client’s office, and the formation of a network of mortgage centres in many Russian cities.

In the last year, Raiffeisenbank has actively cooperated with major real estate agencies and mortgage bro- kers, which, among other things, made it possible to reduce the term for mortgage application approval. On the basis of the 2008 results, the Bank held a gala award ceremony for the best partners in all the re- gions where Raiffeisenbank has a presence.

Car Loans

In the car finance sector, Raiffeisenbank has demonstrated good results due to a wide range of products and high-quality service, which were well confirmed when Raiffeisenbank was named Best Bank for Car Finance in 2008 at the Car Dealer of the Year awards. Raiffeisenbank’s car loan portfolio rose by 21% in 2008 and reached RUR 37.1 billion by the end of the year. The total volume of car loans granted in the last year reached RUR 21.3 billion.

In 2008, Raiffeisenbank improved the system of interregional car loans and simplified the set of documents required to approve the loan application. Car loan operations have been actively developing in the re- gions. In certain periods of the year, the volume of car loans in the regions reached 63% of total sales.

Raiffeisenbank has continued to strengthen partner relations with car dealerships with a special focus on joint lending programmes with car dealerships and manufacturers. The Bank is an active partner in the spe- cial Ford on Credit programme and special lending programmes for Land Rovers and Jaguars.

The main direction of the development of Raiffeisenbank’s car loan operations in 2009 will be an inte- grated competitive product range and intensive development of all channels of sales.

Unsecured Loans

In 2008 the Bank strengthened its position on the market of unsecured consumer loans. The volume of un- secured loans reached RUR 26 billion, while as of the end of 2008, Raiffeisenbank’s portfolio of consumer loans exceeded RUR 33.4 billion.

The greater volume of unsecured loans in 2008 was mainly the result of active promotional campaigns held throughout the year. Furthermore, in autumn 2008 Raiffeisenbank successfully launched a promo- tional lottery for unsecured loans: a drawing of prizes (microwave ovens) was held every two weeks for clients who obtained an unsecured loan from the Bank in that period.

51 Segment Reports

The development of cross sales and products for the Bank’s clients with good credit history was among the Bank’s priorities in consumer lending operations in 2008. The share of such loans reached 25% of total unsecured consumer loans.

To increase the quality of service, in 2008 Raiffeisenbank introduced a new, internationally accepted au- tomated system for approving loan applications. This system made it possible to substantially reduce the time needed to approve applications for unsecured loans. As of the end of 2008, the new system covered nearly 40 branches in Moscow and several of the Bank’s regional divisions.

Rapid Mail Money Transfers

In 2008 Bystraya Pochta, a money transfer system, celebrated its fifth anniversary. Since it became a reg- istered trademark in 2003, Bystraya Pochta has quickly won popularity among clients. The Bank’s active position in developing this service helped make the Bystraya Pochta brand a leader on the money transfer market in a relatively short period of time and maintain its leadership in a highly competitive market.

Now customers of more than 150 partner banks are able to make money transfers in more than 5 100 points of sales in 1 400 cities of 11 countries. In Russia, a money transfer may be made in any of the 152 cities where nearly 700 offices of Raiffeisenbank and its partner banks are located.

In 2008 approximately 3 million clients from Russia and the CIS used Bystraya Pochta to make money transfers. The turnover exceeded the equivalent of USD 1.3 billion. At the year’s end, Bystraya Pochta’s market share stood at approximately 10%.

As it strives for reduced service time, higher quality, and well-developed sales channels, Raiffeisenbank has focused on developing and improving Bystraya Pochta. As soon as the first half of 2009, the Bank’s clients will be able to use self-service terminals of the Bank’s partner company to make money transfers, which will make the service available 24 hours a day, 7 days a week.

52 Segment Reports

The Bank’s turnover in the Rapid Mail money transfer service

USD, mln 1 500

1 400

1 300 1306.02

1 200 1138.80 1 100

1 000

900

800 808.80

700

600

500 453.87 400

300

200 221.86

100 137.01 74.52 37.33 0

2001 2002 2003 2004 2005 2006 2007 2008

Source: Raiffeisenbank

53 Segment Reports

OOO Raiffeisen-Leasing

Last year, OOO Raiffeisen-Leasing closely followed its chosen strategy, maintaining its leading position among universal leasing companies with foreign capital.

In 2008 OOO Raiffeisen-Leasing closed 760 new transactions worth RUR 6.6 billion. The leasing portfolio increased by 13% relative to the 2007 level to reach RUR 11.6 billion (IAS); construction equipment ac- counted for 11% of that figure, trucks and cars for 27.4%, railroad stock for 19.8%, and industrial equip- ment for 41.8%.

The company has a network of branches in Saint Petersburg, Nizhny Novgorod, Krasnodar, Samara, Ekaterinburg, and Novosibirsk. It has been actively working with companies in various sectors across the whole territory of the Russian Federation.

OOO Raiffeisen-Leasing has continuously improved the quality of its products and client service by devot- ing special attention to staff training and development. It is worth noting that the high results achieved by OOO Raiffeisen-Leasing would not have been possible without the professionalism and hard work of its whole team. OOO Raiffeisen-Leasing plans to continue its development and substantially expand its mar- ket share in 2009.

OOO Raiffeisen-Leasing’s portfolio structure (year-end 2008)

Construction equipment 10.97%

Trucks and cars 27.42%

Railroad Stock 19.77%

Industrial equipment 41.84% Source: Raiffeisen-Leasing

54 Segment Reports

Raiffeisen Capital Asset Management Company

In 2008 the Russian investment industry lost more than 60% of assets under management on the back of a global recession accompanied by a substantial correction of capital markets and massivel outflow of funds from risky assets. In this complex environment Raiffeisen Capital MC has not only retained its cus- tomer base but also increased the number of its clients by more than 20%. As of the end of 2008, the num- ber of Raiffeisen Capital AMC’s clients exceeded 21 000.

Based on the results of 2008, Raiffeisen Capital MC has entered the top ten managers of open unit invest- ment funds in Russia (eighth place in terms of assets, ninth place in terms of capital raised), according to www.investfunds.ru, a leading Russian web portal for private investors. As of the end of 2008, the com- pany’s total assets exceeded RUR 2.5 billion, Raiffeisen Capital AMC’s share of the unit investment fund market reached 3.1%.

Raiffeisen Capital AMC’s quality of asset management was highly rated in 2008 by independent experts: the company was awarded the Four Star rating by Interfax-CEA, and by the Russian investment community: in May 2008 the company won the Financial Olympus award for Management Strategy. Based on the results of asset management for non-state pension funds in 2008, Raiffeisen Capital MC has joined the most successful management companies in Russia (according to www.investfunds.ru).

Growth in clients

Number of clients 22 500

21 500

20 500

19 500

18 500

17 500

16 500

15 500

01.12.2007 01.03.2008 01.06.2008 01.09.2008 01.12.2008

Source: Raiffeisen Capital

In December 2008 Raiffeisen Capital MC registered an increase in its charter capital, to RUR 225 million, which once again confirmed that the Raiffeisen Group is strongly committed to developing its asset man- agement business in Russia and expanding the company’s prospects on the institutional market.

In 2009 Raiffeisen Capital MC plans to increase its share of the open funds market through more efficient retail sales and more active cooperation with its parent company, ZAO Raiffeisenbank. The company’s plans for 2009 include expanding its institutional client base, primarily by attracting non-state pension funds and insurance companies, as well as enhancing its cooperation with Raiffeisen Capital Management, the head asset-management company of the Raiffeisen Group.

55 Segment Reports

Non-State Pension Fund Raiffeisen

In 2008, the worsening of the world economic crisis notwithstanding, the problem of pension support­ con­ tinued to be of importance and attracted the attention of both the government and society at large.

Important events which affected further development of the Russian pension system last year included the enactment of Federal Law No. 56-FZ ”Concerning Additional Insurance Contributions to the Funded Part of Retirement Pension and State Support of the Formation of Pension Savings” on 1 October 2008, which states that Russian citizens/ insured parties may augment the funded part of their pension with both their own voluntary payments and the payments of the state.

Amendments introduced to Part II of the Russian Tax Code have expanded tax privileges for citizens. At present the Tax Code grants a pension tax credit equal to the sum not only of the pension savings within the framework of non-government pension support, but also of additional insurance payments to the funded part of the retirement pension paid as part of the programme of co-financing pension savings. As of 1 January 2009, the pension tax credit increased from RUR 100 000 to RUR 120 000.

In order to improve operations of non-state pension funds, in 2008 the government tightened the require- ments of internal control arrangements and changed the procedure of forming insurance reserves with non- state pension funds.

In 2008 the client base of NPF Raiffeisen increased. As of the end of the year, the Fund was serving more than 35 700 pension accounts as part of the non-state pension provision system. A total of 108 companies (including over 30 international corporations) trusted the Fund with servicing their corporate retirement plans; 11 of those companies joined in 2008.

In 2008, 315 clients obtained non-state pensions at NPF Raiffeisen. Total pension payments last year reached RUR 14.4 million.

The number of the insured persons who have trusted NPF Raiffeisen with the funded part of their retirement pension exceeded 19 000. The total number of insured parties who have chosen the Fund as their insurer reached 25 000.

The government programme to co-finance pension savings, launched in 2008, attracted 678 of NPF Raiffeisen’s clients. Contracts of compulsory pension insurance and applications to join the co-financing programme were handled through branches of ZAO Raiffeisenbank, which acts as a transfer agent of the Pension Fund of the Russian Federation.

As of 31 December 2008, NPF Raiffeisen’s total liabilities amounted to nearly RUR 1.4 billion, including 708 million of pension reserves and 687 million of pension savings.

In 2008 the total contribution of NPF Raiffeisen’s founder was increased to RUR 243 million.

Based on the results of the second quarter of 2008, the National Rating Agency (NRA) assigned an A rat- ing to NPF Raiffeisen (high reliability, second level).

In 2008 the Fund attracted investments in pension savings from the following management companies: MC OAO Alliance ROSNO Assets Management, ZAO United Financial Group INVEST, and OOO MC Кapital.

The Fund’s pension reserves were invested by OOO Raiffeisen Capital MC, OOO MC Kapital, MC ZAO United Financial Group INVEST, OOO MC Renaissance Capital, and OAO Uralsib-Capital Mana­ gement.

56 Segment Reports

At the end of 2008, NPF Raiffeisen’s agency network had 98 sales outlets in ZAO Raiffeisenbank’s branches. Non-state pension services were provided to individual customers at 63 branches in Moscow, 17 branches in St. Petersburg, and 18 branches in other regions of Russia. Compulsory pension insurance was provided through 77 Raiffeisenbank branches in Moscow and in the regions.

In 2008 NPF Raiffeisen worked to develop new customer service software in order to sell pension products to individual clients in all Raiffeisenbank branches. The software is part of the programmes of compulsory pension insurance and non-state pension support. It will include the tools for executing documents required to co-finance pension savings. All the Bank’s branches equipped with the new software will be able to sell the Fund’s pension products to individual customers and provide transfer-agent services. With the help of the new software, NPF Raiffeisen expects to expand its agency network through Raiffeisenbank’s branches to 200 sales outlets in 2009.

57 Колонтитул 1

58 Raiffeisenbank Vologda Lacework

”The stark colours of a northern winter” and ”the unmelting Russian frost” are two of the poetic descriptions applied to the snow-white, feather-light Vologda lacework, whose openwork transparency is reminiscent of snowflakes, sharp-needled firs, and whimsical flowers. Needlepoint had its beginnings in the 16th century in Vo- logda, but lacework as a craft came into existence here at the be- ginning of the 19th century. A woven ribbon is woven through a thin openwork ”net” in a smooth, unbroken line, which, without crossing over itself once, creates a rich, unique design. In the past, village children began to learn the difficult profession of laceworking at five years old. The laceworkers were required to have virtuoso control over the bobbins, as in large, complex works, there could be as many as several hundred of them. Openwork bedspreads and light curtains, formal panels and napkins, airy capes, scarves, and frills made of Vologda lace are reminiscent of the most delicate spider- web that may be torn apart by the slightest breeze. They symbolize something pure and fleeting. Regional Expansion

Regional Expansion

In 2008 the world financial markets witnessed material changes which inevitably affected the banking sys- tem and, in particular, the growth rate of Raiffeisenbank’s branch network. Though the Bank’s Managing Board reduced the number of branches which were slated to open in 2008, construction of new offices continued. The Bank decided to focus on construction that had already been initiated and to suspend a search for new locations.

In 2008 the Bank launched two pilot projects in Moscow and Tula. The design of the offices was devel- oped and approved in Vienna. Pilot offices will be completed in 2009 in compliance with the recommen- dations given by Raiffeisen International.

As of the end of 2008, ZAO Raiffeisenbank was represented in 45 Russian regions by 233 outlets, includ- ing 87 branches in Moscow and 146 in the regions.

In 2008 major steps were taken toward developing a uniform opening procedure for all of the Bank’s branches. This will enable the Bank to streamline the activity of all its divisions involved in common projects, and to make all processes more transparent and efficient. To these ends the Bank contracted an outside company to develop a new model of project implementation using Project Server and Microsoft Project. The launch of the new system is expected in early 2009.

Last year we formed a new team for the Network Development Division to introduce a well-defined organi- sational structure in Moscow and in the regions. In every regional centre we introduced three main staff positions to control project developments in the Bank’s outlets: a project manager, a technical supervisor, and a project architect.

60 Corporate Social Responsibility

Corporate Social Responsibility

ZAO Raiffeisenbank, as well as the entire Raiffeisen Group, has traditionally paid special attention to cor- porate social responsibility. Raiffeisenbank is more than just a major financial institution; it is also a team of more than 9 000 highly qualified professionals. The Bank’s social responsibility is based on the civic awareness of all its team members and their internal commitment to sustainable social development. Our avowed principles reflect real values of Raiffeisenbank’s team.

Raiffeisenbank expresses its social responsibility in following basic business principles:

Business Transparency

Open and transparent cooperation with our partners, clients, employees, and government authorities is Raiffeisenbank’s top priority. The information disclosed by the Bank makes it possible to ensure fair risk as- sessment and take decisions on long-term cooperation. The Bank strictly adheres to Russian laws and makes timely and full payments of all taxes.

Responsible Employer Status

ZAO Raiffeisenbank is a responsible employer for more than 9 000 professionals. It has provided all its employees with the required social benefits and competitive remuneration. The Bank continuously up- grades personnel training and education programmes it has introduced. In an effort to enhance social pro- tection of its employees, Raiffeisenbank has been developing a corporate retirement benefit plan.

61 Corporate Social Responsibility

Support for Vulnerable Segments of the Population

ZAO Raiffeisenbank has implemented a wide-ranging charitable programme on both the federal and local levels.

According to its corporate social responsibility policy, Raiffeisenbank’s top priorities in its charitable activi- ties are to support the disabled of all ages, to provide assistance to the elderly and veterans of World War II, to support orphans and provide social adaptation and education services to disadvantaged children, and to finance medical aid for severely ill children.

In 2008 Raiffeisenbank granted aid to more than thirty charitable foundations, non-for-profit organisa- tions, and health-care institutions in Moscow and other regions where the Bank has a presence.

Among other things, Raiffeisenbank acted as a general partner of the SMS-marathon You Are Not Alone! The funds collected at the event were transferred to a foundation for homeless children. The Bank once again supported the SOS Children’s Village project, after taking on responsibility for the maintenance of a home in the Tomilino children’s village. We helped the Podari Zhizn foundation purchase medicine for children suffering from blood cancer.

In 2008 Raiffeisenbank for the first time ever took part in the programme Charity Instead of Souvenirs. Rather than purchasing New Year’s gifts for its corporate partners, the Bank transferred the money it would have spent to the SOS Children’s Village foundation.

Raiffeisenbank is strongly committed to involving its employees in charitable activities. The Helping Together! corporate programme launched in February 2008 gave every employee a chance to make a personal contribution to our common cause.

The programme is aimed at collecting funds for charitable projects from employees’ personal contributions. Raiffeisenbank doubles the total sum. An important condition for a project to take part in Helping Together! is the involvement of the Bank’s employees, for example, as volunteers. In 2008 Helping Together! sup- ported two projects; notably, the funds collected for each of them considerably exceeded the required amounts.

62 Corporate Social Responsibility

Support of Sustainable Development of Society as a Whole

In sponsoring culture, sport, and education projects, Raiffeisenbank sees its mission as reviving Russia’s cultural heritage, creating a common cultural environment between Russia and Europe, supporting young talents in Olympic sports, and raising financial literacy among various segments of society. In 2008 the Bank sponsored more than 40 significant cultural and sports projects.

They include: partnership with Bolshaya Peremena, the Moscow International Festival of Children’s Theatres; sponsorship of the Ranevskaya International Theatre Festival in Taganrog; support of the concert of the leg- endary Austrian pianist Alfred Brendel held in the Grand Hall of the Moscow Conservatory and the first-ever Russian performance of the chamber orchestra Virtuosos of Vienna in the Tchaikovsky Concert Hall. The Bank assisted in the organization of ”Biblical Scenes,” a Marc Chagall exhibition in Krasnoyarsk, and an exhibition of contemporary Austrian sculptor Hortensia Fussy at the Central House of Artists in Moscow.

In 2008 the Bank supported several youth tournaments in mini-football, competitions in rhythmic gymnas- tics and skiing, the Russian Championship in speed-walking in Saransk and other sport events.

At Coming Back to Life, the third awards ceremony of the Russian Paralympic Committee, Raiffeisenbank awarded cash prizes to 12 paralympic sportsmen who demonstrated outstanding results at the 2008 Paralympic Games in Beijing.

63

Raiffeisenbank Shemogsa Woodcarving

Shemogsa woodcarving is the traditional Russian folk craft of em- bossing and carving birch bark that appeared in the 18th century in the Vologda region and was named after Shemogsa Creek, which flows through the area. Under the knives of the village mas- ters, the soft, pliant bark of the young birch was turned into real lacework. It is easy to recognise a Shemogsa design: it will be a creeping vine with elongated leaves and delicately curling tendrils, thick grass, round rosettes, berries, or trefoils. The figures of birds and animals or scenes from peasant life were often added to the floral design. The pictures were finished with a border of leaves, wavy lines, or grids. The birch-bark layer with the ornamental cut- outs was glued onto a wooden item, and the background was painted or covered in coloured foil for the sake of contrast. When decorative boxes and snuffboxes, hampers and tea caddies, plat- ters and plates, cigarette cases and long, cylindrical boxes were decorated with carved birch bark from Shemogsa, they brought an air of celebration to the house. Financial Statements

Financial Statements Consolidated Balance Sheet

In thousands of RUR Note 31 December 31 December 2008 2007 ASSETS Cash and cash equivalents 7 153 372 810 81 991 288 Mandatory cash balances with the Central Bank of the Russian Federation 484 645 6 212 658 Trading securities 8 14 495 678 28 343 789 Repurchase receivables as trading securities 12 4 405 733 — Other securities at fair value through profit or loss 9 12 534 378 3 292 962 Due from other banks 10 7 426 118 3 681 359 Loans and advances to customers 11 364 540 357 294 824 677 Investment securities available for sale 337 162 — Premises and equipment 15 9 224 923 7 460 938 Intangible assets 16 11 305 949 11 271 988 Current income tax asset 1 419 431 2 584 791 Deferred income tax asset 30 156 731 133 710 Investment securities held to maturity 13 3 960 068 976 715 Repurchase receivables as investment securities held to maturity 298 195 — Derivatives and other financial assets 17 33 619 496 1 684 081 Investment in associate 14 606 935 538 940 Other assets 18 1 130 971 1 234 065 TOTAL ASSETS 619 319 580 444 231 961 LIABILITIES Due to other banks 19 60 275 109 45 642 750 Customer accounts 20 259 402 419 204 546 804 Term borrowings from the Parent Bank 22 121 439 321 87 775 061 Term borrowings from other financial institutions 22 63 754 028 47 505 220 Debt securities in issue 21 10 076 515 54 485 Derivatives and other financial liabilities 23 27 270 016 5 437 565 Other liabilities 24 2 665 826 1 773 823 TOTAL LIABILITIES 544 883 234 392 735 708 EQUITY Share capital 25 43 268 888 28 386 596 Share premium 591 083 591 083 Additional paid-in capital 1 520 016 1 520 016 Retained earnings and other reserves 29 056 359 20 998 558 TOTAL EQUITY 74 436 346 51 496 253 TOTAL LIABILITIES AND EQUITY 619 319 580 444 231 961

Approved for issue and signed on behalf of the Managing Board on 8 April 2009.

______Pavel Gurin Arndt Roechling Chairman of the Board Chief Financial Officer

66 Financial Statements

Consolidated Income Statement

In thousands of RUR Note 2008 2007

Interest income 27 44 712 405 33 633 770

Interest expense 27 (16 044 629) (13 721 654)

Net interest income 28 667 776 19 912 116

Provision for loan impairment 11 (6 653 560) (4 290 016)

Net interest income after provision for loan impairment 22 014 216 15 622 100

Fee and commission income 28 6 840 357 5 988 186

Fee and commission expense 28 (1 357 794) (1 072 859)

Gains less losses from trading securities (2 630 230) (581 932)

Gains less losses from other securities at fair value through profit or loss (224 581) (16 513)

Gains less losses from trading in foreign currencies 3 231 486 2 198 549

Unrealized gains less losses from derivative financial instruments 36 9 262 499 (1 711 492)

Realized gains less losses from derivative financial instruments (1 501 457) (1 462 071)

Foreign exchange translation losses less gains (3 165 380) 2 491 650

Ineffectiveness from the hedge accounting (9 225) —

Release of provisions/(provisions) for credit related commitments 35 (160 063) 147 317

Gains from redemption of investment securities available for sale 422 092 —

Other operating income 76 722 238 822

Administrative and other operating expenses 29 (17 196 899) (13 063 183)

Share of profit of associate 14 67 995 90 679

Profit before tax 15 669 738 8 869 253

Income tax expense 30 (4 472 228) (2 171 959)

Profit for the year 11 197 510 6 697 294

67 Financial Statements

Consolidated Statement of Changes in Equity

In thousands of RUR Note Share Share Additional Retained Other Total capital premium paid-in earnings reserves capital Balance at 31 December 2006 17 070 206 155 566 1 520 016 15 462 490 — 34 208 278 Effect of translation to presentation currency — — — — 11 574 11 574 Net income recognised directly in equity — — — — 11 574 11 574 Profit for the year — — — 6 697 294 — 6 697 294 Total recognised income for 2007 — — — 6 697 294 11 574 6 708 868 Share issue 25 11 316 390 435 517 — — — 11 751 907 Dividends declared 31 — — — (1 172 800) — (1 172 800) Balance at 31 December 2007 28 386 596 591 083 1 520 016 20 986 984 11 574 51 496 253 Effect of translation to presentation currency — — — — (99 131) (99 131) Revaluation of investment securities available for — — — — 759 254 759 254 sale Redemption of investment securities available for — — — — (422 092) (422 092) sale Income tax from revaluation of investment — — — — (67 432) (67 432) securities available for sale recorded directly in equity Reserve due to cash flow hedge — — — — (1 665 618) (1 665 618) Income tax from cash flow hedge recorded — — — — 333 124 333 124 directly in equity Net loss recognised directly in equity — — — — (1 161 895) (1 161 895) Profit for the year — — — 11 197 510 — 11 197 510 Total recognised income / — — — 11 197 510 (1 161 895) 10 035 615 (expense) for 2008 Share issue 25 14 882 292 — — — — 14 882 292 Dividends declared 31 — — — (1 977 814) — (1 977 814) Balance at 31 December 2008 43 268 888 591 083 1 520 016 30 206 680 (1 150 321) 74 436 346

68 Financial Statements

Consolidated Statement of Cash Flows

In thousands of RUR Note 2008 2007 Cash flows from operating activities Interest received 43 620 119 32 592 082 Interest paid (9 925 852) (9 160 292) Fees and commissions received 6 840 357 6 028 872 Fees and commissions paid (1 339 070) (1 073 027) Realized losses less gains from trading in trading securities (145 236) 11 230 Realized losses less gains arising from other securities at fair value through profit or loss (224 581) (16 513) Realized losses less gains from financial derivative instruments (2 302 381) 87 263 Realized gains less losses arising from trading in foreign currencies 3 231 486 1 099 904 Other operating income received 76 722 201 043 Administrative and other operating expenses paid (15 024 165) (11 443 583) Income tax paid (3 064 197) (4 720 632) Cash flows from operating activities before changes in operating assets and liabilities 21 743 202 13 606 347 Changes in operating assets and liabilities Net (increase)/decrease in mandatory cash balances with the Central Bank of the Russian Federation 5 728 013 (1 862 697) Net (increase)/decrease in trading securities 3 658 223 (3 058 252) Net increase in other securities at fair value through profit and loss (9 091 343) (1 968 916) Net increase/(decrease) in due from other banks (3 296 869) 367 113 Net increase in loans and advances to customers (44 370 713) (106 992 651) Nat increase in securities held to maturity and repurchase receivables held to maturity 408 591 (281 511) Net increase in derivatives and other financial assets (137 319) (54 797) Net (increase)/decrease in other assets (378 075) 731 325 Net increase in due to other banks 12 219 286 14 963 003 Net increase in customer accounts 36 766 698 48 191 041 Net increase/(decrease) in debt securities in issue 10 022 030 (4 821 919) Net decrease/increase in derivatives and other financial liabilities (1 089 761) 786 051 Net increase/(decrease) in other liabilities 1 013 090 (1 044 603) Net cash provided by / (used in) operating activities 33 195 053 (41 440 466) Cash flows from investing activities Acquisition of premises and equipment and intangible assets (2 903 122) (1 526 914) Proceeds from disposal of investment securities available for sale 422 092 16 513 Net cash used in investing activities (2 481 030) (1 510 401) Cash flows from financing activities Proceeds from term borrowings from the Parent Bank and other financial institutions 38 733 638 98 544 393 Repayment of term borrowings from the Parent Bank and other financial institutions (21 130 797) (23 078 352) Interest paid on the other borrowed funds (4 770 862) (4 489 490) Share issue 25 14 882 292 11 751 907 Dividends paid 31 (1 977 814) (1 172 800) Net cash from financing activities 25 736 457 81 555 658 Change in accrued interest on cash and cash equivalents (15 618) 37 995 Effect of exchange rate changes on cash and cash equivalents 14 946 660 (1 826 452) Net increase in cash and cash equivalents 71 381 522 36 816 334 Cash and cash equivalents at the beginning of the year 81 991 288 45 174 954 Cash and cash equivalents at the end of the year 7 153 372 810 81 991 288

69 КолонтитулRZB Group 1

FINLAND

Helsinki •Oslo • Stockholm • BALTIC SEA •Tallinn ESTONIA SWEDEN •Riga LATVIA DANMARK Moscow •Copenhagen LITHUANIA RUSSIA Vilnius• Minsk RUSSIA

POLAND BELARUS Warsaw

Prague Kiev CZECH REPUBLIC KAZAKHSTAN SLOVAKIA UKRAINE Bratislava Vienna MOLDOVA AUSTRIA Budapest Chisinau Maribor HUNGARY SLOVENIA CROATIA Belgrade ROMANIA Zagreb ARAL SEA Bucharest Sarajevo SERBIA ITALY BOSNIA AND KOSOVO BLACK SEA UZBEKISTAN HERZEGOVINA Sofia CASPIAN SEA Pristina BULGARIA GEORGIA •Rome •Skopje •Tbilisi Tirana MACEDONIA ALBANIA ARMENIA AZERBAIJAN •Yerevan Baku•

70 КолонтитулRZB Group 1

FINLAND

Helsinki •Oslo • Stockholm • BALTIC SEA •Tallinn ESTONIA SWEDEN •Riga LATVIA DANMARK Moscow •Copenhagen LITHUANIA RUSSIA Vilnius• Minsk RUSSIA

POLAND BELARUS Warsaw

Prague Kiev CZECH REPUBLIC KAZAKHSTAN SLOVAKIA UKRAINE Bratislava Vienna MOLDOVA AUSTRIA Budapest Chisinau Maribor HUNGARY SLOVENIA CROATIA Belgrade ROMANIA Zagreb ARAL SEA Bucharest Sarajevo SERBIA ITALY BOSNIA AND KOSOVO BLACK SEA UZBEKISTAN HERZEGOVINA Sofia CASPIAN SEA Pristina BULGARIA GEORGIA •Rome •Skopje •Tbilisi Tirana MACEDONIA ALBANIA ARMENIA AZERBAIJAN •Yerevan Baku• 71 71 Addresses and Contacts

Addresses and Contacts Raiffeisen International Bank-Holding AG

Austria Am Stadtpark 3 1030 Wien Phone: +43-1-71 707 0 Fax: +43-1-71 707 1715 www.ri.co.at [email protected] [email protected]

Banking Bosnia and Czech Republic Herzegovina Raiffeisenbank a.s. Network Raiffeisen Bank d.d. Bosna i Hvezdova 1716/2b Hercegovina 140 78 Prague 4 in Central and Danijela Ozme 3 Phone:+ 420-221-141 111 Eastern Europe 71000 Sarajevo Fax: +420-221-142 111 Phone: +387-33-287 100 SWIFT/BIC: RZBCCZPP Fax: +387-33-213 851 www.rb.cz Albania SWIFT/BIC: RZBABA2S Contact: Lubor Žalman Raiffeisen Bank Sh.a. www.raiffeisenbank.ba [email protected] European Trade Center Contact: Michael G. Mueller Bulevardi ”Bajram Curri” michael.mueller@rbb-sarajevo. Hungary Tiranё raiffeisen.at Raiffeisen Bank Zrt. Phone: +355-4-2222 669 Akadémia utca 6 Fax: +355-4-2275 599 Bulgaria 1054 Budapest SWIFT/BIC: SGSBALTX Raiffeisenbank Phone: +36-1-484 4400 www.raiffeisen.al (Bulgaria) EAD Fax: +36-1-484 4444 Contact: Oliver J. Whittle 18/20 Ulica N. Gogol SWIFT/BIC: UBRTHUHB [email protected] 1504 Sofia www.raiffeisen.hu Phone: +359-2-9198 5101 Contact: Petra Reok Belarus Fax: +359-2-943 4528 [email protected] Priorbank, OAO SWIFT/BIC: RZBBBGSF Ul. V. Khoruzhey, 31-A www.rbb.bg Kosovo 220002 Minsk Contact: Momtchil Andreev Raiffeisen Bank Phone: +375-17-289 90 90 [email protected] Kosovo J.S.C. Fax: +375-17-289 9191 Rruga UÇK, No. 51 SWIFT/BIC: PJCBBY2X Croatia Prishtina 10 000 www.priorbank.by Raiffeisenbank Austria d.d. Phone: +381-38-222 222 Contact: Olga Gelakhova Petrinjska 59 Fax: +381-38-20 30 1130 [email protected] 10 000 Zagreb SWIFT/BIC: RBKORS22 Phone: +385-1-456 6466 www.raiffeisen-kosovo.com Fax: +385-1-481 1624 Contact: Bogdan Merfea SWIFT/BIC: RZBHHR2X bogdan.merfea@ www.rba.hr raiffeisen-kosovo.com Contact: Vesna Ciganek-Vukovic [email protected]

72 Addresses and Contacts

Poland Slovenia Belarus Raiffeisen Bank Polska S.A. Raiffeisen Banka d.d. SOOO Raiffeisen Leasing Ul. Pie˛kna 20 Slovenska ulica 17 Ul. V. Khoruzhey, 31-A 00-549 Warszawa 2000 Maribor 220002 Minsk Phone: +48-22-585 2001 Phone: +386-2-229 3100 Phone: +375-17-289 9396 Fax: +48-22-585 2585 Fax: +386-2-252 4779 Fax: +375-17-289 9394 SWIFT/BIC: RCBWPLPW SWIFT/BIC: KREKSI22 www.priorbank.by www.raiffeisen.pl www.raiffeisen.si Contact: Maksim Lisicky Contact: Piotr Czarnecki Contact: Klemens Nowotny [email protected] [email protected] klemens.nowotny @raiffeisen.si Bosnia and Romania Herzegovina Raiffeisen Bank S.A. Ukraine Raiffeisen Leasing d.o.o. Piat‚a Charles de Gaulle 15 VAT Raiffeisen Bank Aval Sarajevo 011857 Bucures˛ti 1 Vul. Leskova, 9 St. Branilaca Sarajeva No. 20 Phone: +40-21-306 1000 01011 Kyiv 71000 Sarajevo Fax: +40-21-230 0700 Phone: +38-044-490 8888 Phone: +387-33-254 354 SWIFT/BIC: RZBRROBU Fax: +38-044-285 3231 Fax: +387-33-212 273 www.raiffeisen.ro SWIFT/BIC: AVAL UA UK www.rlbh.ba Contact: Steven C. van Groningen www.aval.ua Contact: Belma Sekavic-Bandic [email protected] Contact: Leonid Zyabrev ebelma.sekavic@rbb-sarajevo. [email protected] raiffeisen.at Russia ZAO Raiffeisenbank Bulgaria Smolenskaya-Sennaya pl., 28 Leasing Raiffeisen Leasing 119002 Moscow Bulgaria OOD Phone: +7-495-721 9900 Business Park Sofia Fax: +7-495-721 9901 Austria Building 11, 2nd floor SWIFT/BIC: RZBMRUMM Raiffeisen-Leasing 1715 Sofia www.raiffeisen.ru International GmbH Phone: +359-2-970 7979 Contact: Pavel Gurin Am Stadtpark 3 Fax: +359-2-974 2057 [email protected] 1030 Wien www.rlbg.bg Phone: +43-1-71 707 2966 Contact: Dobromir Dobrev Serbia Fax: +43-1-71 707 2059 dobromir.dobrev@rbb-sofia. Raiffeisen banka a.d. www.rli.co.at raiffeisen.at Bulevar Zorana Djindjic´a 64a Contact: Dieter Scheidl 11070 Novi Beograd [email protected] Croatia Phone: +381-11-320 2100 Raiffeisen Leasing d.o.o. Fax: +381-11-220 7080 Albania Radnicka cesta 43 SWIFT/BIC: RZBSRSBG Raiffeisen Leasing Sh.a. 10000 Zagreb www.raiffeisenbank.rs Rruga Kavajes 44 Phone: +385-1-6595 000 Contact: Oliver Rögl Tiranë Fax: +385-1-6595 050 [email protected] Phone: +355-4-2274 920 www.rl-hr.hr Fax: +355-4-2232 524 Contact: Miljenko Tumpa Slovakia www.raiffeisen.al [email protected] Tatra banka, a.s. Contact: Ida Shehu Hodžovo námestie 3 [email protected] 811 06 Bratislava 1 Phone: +421-2-5919 1111 Fax: +421-2-5919 1110 SWIFT/BIC: TATRSKBX www.tatrabanka.sk Contact: Igor Vida igor_vida@ tatrabanka.sk

73 Addresses and Contacts

Czech Republic Moldova Serbia Raiffeisen-Leasing s.r.o. Raiffeisen Leasing SRL Raiffeisen Leasing d.o.o. Hvezdova 1716/2b 51 Alexandru cel Bun Milutina Milankovic‘a 134a 14078 Praha 4 2012 Chisinau 11070 Novi Beograd Phone: +420-221-5116 11 Phone: +373-22-2793 13 Phone: +381-11-20177 00 Fax: +420-221-5116 66 Fax: +373-22-2283 81 Fax: +381-11-31300 81 www.rl.cz www.raiffeisen-leasing.md www.raiffeisen-leasing.rs Contact: Rastislav Kereškéni Contact: Victor Bodiu Contact: Ana Ruzic [email protected] [email protected] ana.ruzic@raiffeisen- leasing.co.yu Raiffeisen Leasing Poland Real Estate s.r.o. Raiffeisen-Leasing Polska Slovakia Hvezdova 1716/2b S.A. Tatra Leasing s.r.o. 14078 Praha 4 Ul. Prosta 51 Továrenská 10 Phone: +420-2-215116 10 00838 Warszawa 81109 Bratislava Fax: +420-2-215116 41 Phone: +48-22-32 63 600 Phone: +421-2-5919 3168 www.realestateleasing.cz Fax: +48-22-32 63 601 Fax: +421-2-5919 3048 Contact: Alois Lanegger www.rl.com.pl www.tatraleasing.sk [email protected] Contact: Arkadiusz Etryk Contact: Igor Horváth [email protected] [email protected] Hungary Raiffeisen Lízing Zrt. Romania Slovenia Váci utca 81-85 Raiffeisen Leasing IFN SA Raiffeisen Leasing d.o.o. 1139 Budapest Calea 13 Septembrie 90 Tivolska 30 (Center Tivoli) Phone: +36-1-298 8016 Grand Offices 1000 Ljubljana Fax: +36-1-298 8600 Marriott Grand Hotel Phone: +386-1-241 6250 www.raiffeisenlizing.hu Sector 5 Fax: +386-1-241 6268 Contact: Kevin Reagan 050726 Bucures˛ti www.rl-sl.com [email protected] Phone: +40-21-403 3334 Contact: Borut Božicˇ Fax: +40-21-403 3298 [email protected] Kazakhstan www.raiffeisen-leasing.ro Raiffeisen Leasing Contact: Mihaela Mateescu Ukraine Kazakhstan LLP mihaela.mateescu@ LLC Raiffeisen Leasing Aval 146, Shevchenko str. raiffeisen-leasing.ro Moskovskiy Prospect, 9 Office 12, 1st floor Corp. 5 office 101 050008 Almaty Russia 04073 Kyiv Phone: +7-727-3785 446 OOO Raiffeisen-Leasing Phone: +38-044-590 2490 Fax: +7-727-3785 447 Stanislavskogo ul., 21/1 Fax: + 38-044-200 0408 www.rlkz.kz 109004 Moscow www.rla.com.ua Contact: Michal Spychalski Phone: +7-495-721 9980 Contact: Peter Oberauer [email protected] Fax: +7-495-721 9901 [email protected] www.rlru.ru Kosovo Contact: Alexey Iodko Raiffeisen Leasing Kosovo [email protected] Rruga Agim Ramadani No. 17 Prishtina 10000 Phone: +381-38-222222 341 Fax: +381-38-2030 1136 Contact: info-leasing@ raiffeisen-kosovo.com

74 Addresses and Contacts

Investment Hungary Serbia Raiffeisen Bank Zrt. Raiffeisen Investment AG Banking in CEE Akadémia utca 6 Bulevar Zorana Djindjica 64a 1054 Budapest 11070 Novi Beograd Phone: +36-1-484 4400 Phone: +381-11-21 29211 Bosnia and Fax: +36-1-484 4444 Fax: +381-11-21 29213 Herzegovina www.raiffeisen.hu Contact: Radoš Ilincˇic’ Raiffeisen Bank d.d. Contact: Gábor Liener [email protected] Bosna i Hercegovina [email protected] Danijela Ozme 3, 71000 Slovakia Sarajevo Poland Tatra banka, a.s. Phone: +387-33-287 100 Raiffeisen Investment Hodžovo námestie 3 or 287 121 Polska Sp.z o.o. 811 06 Bratislava 1 Fax: +387-33-213 851 Ul. Pie˛kna 20 Phone: +421-2-5919 1111 www.raiffeisenbank.ba 00-549 Warszawa Fax: +421-2-5919 1110 Contact: Dragomir Grgic Phone: +48-22-585 2900 www.tatrabanka.sk dragomir.grgic@ Fax: +48-22-585 2901 Contact: Igor Vida rbb-sarajevo.raiffeisen.at Contact: Marzena Bielecka [email protected] [email protected] Bulgaria Slovenia Raiffeisen Asset Romania Raiffeisen Banka d.d. Management EAD Raiffeisen Asset Slovenska ulica 17 18/20 Ulica N. Gogol Management România 2000 Maribor 1504 Sofia Piat‚a Charles de Gaulle 15, et. IV Phone: +386-2-229 3119 Phone: +359-2-919 85 632 011857 Bucures˛ti 1 Fax: +386-2-252 5518 Fax: +359-2-943 4528 Phone: +40-21-306 1711 www.raiffeisen.si www.ram.bg Fax: +40-21-312 0533 Contact: Primož Kovacˇicˇ Contact: Mihail Atanasov www.raiffeisenfonduri.ro [email protected] [email protected] Contact: Mihail Ion [email protected] Ukraine Croatia Raiffeisen Investment TOV Raiffeisenbank Austria d.d. Raiffeisen Capital & 2, Mechnikova vul. Petrinjska 59 Investment S.A. 01601Kyiv 10000 Zagreb Piat‚a Charles de Gaulle 15 Phone/Fax: +38-044-490 6897 Phone: +385-1-456 6466 011857 Bucures˛ti 1 or: +38-044-490 6897 98 Fax: +385-1-456 6490 Phone: +40-21-306 1233 Contact: Vyacheslav Yakymuk www.rba.hr Fax: +40-21-230 0684 [email protected] Contact: Ivan Žižic www.rciro.ro [email protected] Contact: Dana Mirela Ionescu [email protected] Raiffeisen Czech Republic Raiffeisenbank a.s. Russia Zentralbank.. Olbrachtova 2006/9 ZAO Raiffeisenbank Osterreich AG 14021 Praha 4 Smolenskaya-Sennaya pl., 28 Phone: +420-221-141 863 119002 Moscow (RZB) Fax: +420-221-143 804 Phone: +7-495-721 9900 www.rb.cz Fax: +7-495-721 9901 Contact: Martin Bláha www.raiffeisen.ru Austria (Head Office) [email protected] Contact: Oxana Panchenko Am Stadtpark 9 [email protected] 1030 Wien Phone: +43-1-71 707 0 Fax: +43-1-71 707 1715 SWIFT/BIC RZBAATWW www.rzb.at

75 Addresses and Contacts

China U.S.A. Moldova Beijing Branch RZB Finance LLC Chisinau Beijing International Club, Suite 1133, Avenue of the Americas (Raiffeisen Bank S.A.) 200 16th floor, New York, N.Y. 10036 65 Stefan cel Mare blvd. 21, Jianguomenwai Dajie Phone: +1-212-845 4100 Chisinãu, MD-2001 100020 Beijing Fax: +1-212-944 2093 Phone: +373-22-279 331 Phone: +86-10-6532 3388 www.rzbfinance.com Fax: +373-22-279 343 Fax: +86-10-6532 5926 Contact: Dieter Beintrexler Contact: Victor Bodiu SWIFT/BIC: RZBACNBJ [email protected] [email protected] Contact: Andreas Werner [email protected] Russia Representative Moscow Xiamen Branch 14, Pretchistensky Pereulok Unit B,32/F, Zhongmin Building offices Building 1, 119034 Moscow No. 72 Hubin North Road in Europe Phone: +7-495-721 9905 Xiamen 361012, Fujian Province Fax: +7-495-721 9907 Phone: + 86-592-2623 988 Contact: Svyatoslav Bulanenkov Fax: + 86-592-2623 998 Belgium svyatoslav.bulanenkov@ Contact: Mickle Han Brussels raiffeisen.ru [email protected] Rue du Commerce 20–22 1000 Bruxelles Sweden/ Malta Phone: +32-2-549 0678 Nordic Countries Raiffeisen Malta Bank plc Fax: +32-2-502 6407 Stockholm 52, Il-Piazzetta, Tower Road, www.rzb.at Norrlandsgatan 12 Sliema SLM1607, Malta Contact: Josef-Christoph Swoboda P.O. Box 7810 Phone: +356-2260 0000 [email protected] SE-103 96 Stockholm Fax: +356-2132 0954 Phone: +46-8-440 5086 Contact: Anthony C. Schembri Germany Fax: +46-8-440 5089 anthony.schembri@ Frankfurt am Main Contact: Lars Bergström rzbgroup.com.mt Mainzer Landstraße 51 [email protected] D-60329 Frankfurt am Main Singapore Phone: +49-69-29 92 19-18 Singapore Branch Fax: +49-69-29 92 19-22 One Raffles Quay Contact: Dorothea Renninger #38-01 North Tower [email protected] Singapore 048583 Phone: +65-6305 6000 France Fax: +65-6305 6001 Paris Contact: Rainer Šilhavý 9–11, Avenue Franklin Roosevelt [email protected] 75008 Paris Phone: +33-1-4561 2700 United Kingdom Fax: +33-1-4561 1606 London Branch Contact: Harald Stoffaneller London Branch harald.stoffaneller@ 10, King William Street fr.rzb.at London EC4N 7TW Phone: +44-20-7933 8000 Italy Fax: +44-20-7933 8099 Milan SWIFT/BIC: RZBAGB2L Via Andrea Costa 2 www.london.rzb.at 20131 Milano Contact: Mark Bowles Phone: +39-02-2804 0646 [email protected] Fax: +39-02-2804 0658 www.rzb.it Contact: Miriam Korsic [email protected]

76 Addresses and Contacts

China Investment Representative Harbin offices 3/F, No.202 Changjiang Street, Banking Nanggang District in America Harbin 150090 Austria Phone: +86(451) 55531988 Raiffeisen Zentralbank .. and Asia Fax: +86(451) 55531988 Osterreich AG E-mail: yinhou [email protected] Global Markets U.S.A. Am Stadtpark 9, 1030 Vienna Chicago (RZB Finance LLC) Hong Kong Phone: +43-1-71 707-2662 150 N. Martingale Road, Suite Unit 2001, 20th floor, Tower 1 Fax: +43-1-71 707- 762662 840 Lippo Centre, 89 Queensway www.rzb.at Schaumburg, IL 60173 Hong Kong Contact: Patrick Butler Phone: +1-847-995 8884 Phone: +85-2-2730 2112 [email protected] Fax: +1-847-995 8880 Fax: +85-2-2730 6028 Contact: Charles T. Hiatt Contact: Edmond Wong Raiffeisen Centrobank AG [email protected] [email protected] Equity Tegetthoffstraße 1, 1015 Vienna Houston (RZB Finance LLC) Zhuhai SWIFT/BIC: CENBATWW 10777, Westheimer, Suite 1100 Room 2404, Yue Cai Building Phone: +43-1-51 520-0 Houston, TX 77042 188, Jingshan Road, Jida Fax: +43-1-513 4396 Phone: +1-713-260 9697 519015 Zhuhai www.rcb.at Fax: +1-713-260 9602 Tel: +86-756-323 3500 Contact: Eva Marchart Contact: Stephen A. Plauche Fax: +86-756-323 3321 [email protected] [email protected] Contact: Susanne Zhang-Pongratz [email protected] Raiffeisen INVESTMENT AG New York Krugerstraße 13, 1015 Wien 1133, Avenue of the Americas India Tel +43 1 710 54 00 0 16th floor, New York, NY 10036 Mumbai Fax +43 1 710 54 00 169 Phone: +1-212-593 7593 87, Maker Chambers VI www.raiffeisen-investment.com Fax: +1-212-593 9870 Nariman Point, Mumbai 400 021 Contact: Heinz Sernetz Contact: Dieter Beintrexler Phone: +91-22-663 01700 [email protected] dieter.beintrexler@ Fax: +91-22-663 21982 rzb-newyork.raiffeisen.at Contact: Anupam Johri Subsidiaries and representative [email protected] offices in Bosnia and Herzegovina, Bulgaria, Czech South Korea Republic, Hungary, Seoul Montenegro, Poland, Romania, Leema Building, 8th floor Russia, Serbia, Turkey and 146-1, Soosong-dong Ukraine Chongro-ku, 110-755 Seoul Phone: +822-398 5840 Fax: +822-398 5807 Contact: Kun II Chung [email protected]

Vietnam Ho Chi Minh 6 Phung Khac Khoan Str., Room G6, Dist. 1, Ho Chi Minh City Phone: +84-8-3829-7934 Fax: +84-8-3822-1318 Contact: Ta Thi Kim Thanh — Chief Rep [email protected]

77 SegmentZAO Raiffeisenbank Reports

• Kaliningrad

• Petrozavodsk • Saint Petersburg • Yartsevo • Smolensk • Cherepovets • Kaluga • Gubkin • Yaroslavl • Bryansk • Tula Zheleznogorsk • Moscow • Syktyvkar Kursk• • Livny • • Oryol • Ivanovo • Belgorod • Lipetsk • Nizhny Novgorod • Stary Oskol • Ossora • Taganrog • Voronezh • Sovetsk Saransk • Rostov-on-Don • • Kirov Anapa • Kazan • Krasnodar • Saratov • • Izhevsk Novorossiysk• • Volzhsky Ufa •• Perm Sochi • Stavropol • Volgograd Nikolskoye• • • Togliatti • Nefteyugansk • Yakutsk • Magadan Essentuki • Samara • • Ekaterinburg • Surgut Elizovo • • Zlatoust Petropavlovsk-• • Miass Kamchatsky • Chelyabinsk • Tyumen Vilyuchinsk •

• Omsk • Tomsk • Berdsk • Krasnoyarsk • Kemerovo • Novosibirsk • Barnaul • Bratsk • Blagoveshchensk Angarsk• • Irkutsk • Chita • Khabarovsk

• Vladivostok • Artyom

78 ZAOSegment Raiffeisenbank Reports

• Kaliningrad

• Petrozavodsk • Saint Petersburg • Yartsevo • Smolensk • Cherepovets • Kaluga • Gubkin • Yaroslavl • Bryansk • Tula Zheleznogorsk • Moscow • Syktyvkar Kursk• • Livny • • Oryol • Ivanovo • Belgorod • Lipetsk • Nizhny Novgorod • Stary Oskol • Ossora • Taganrog • Voronezh • Sovetsk Saransk • Rostov-on-Don • • Kirov Anapa • Kazan • Krasnodar • Saratov • • Izhevsk Novorossiysk• • Volzhsky Ufa •• Perm Sochi • Stavropol • Volgograd Nikolskoye• • • Togliatti • Nefteyugansk • Yakutsk • Magadan Essentuki • Samara • • Ekaterinburg • Surgut Elizovo • • Zlatoust Petropavlovsk-• • Miass Kamchatsky • Chelyabinsk • Tyumen Vilyuchinsk •

• Omsk • Tomsk • Berdsk • Krasnoyarsk • Kemerovo • Novosibirsk • Barnaul • Bratsk • Blagoveshchensk Angarsk• • Irkutsk • Chita • Khabarovsk

• Vladivostok • Artyom

79 Addresses and Contacts

ZAO Raiffeisenbank

Raiffeisenbank Lyublino branch Petrovsky park branch in Moscow Krasnodarskaya str., 48 Petrovsko-Razumovskaya e-mail: [email protected] alleya, 10, bld. 3 Avrora branch e-mail: petrovsky_park@ Sadovnicheskaya str., 82, bld. 2 Marksistskoye branch raiffeisen.ru e-mail: [email protected] Marksistsky lane, 3 e-mail: marksistskoye@ Podolskoye branch Bagrationovskoye branch raiffeisen.ru Podolsk, Revolyutsionny Barklaya str., 16, bld. 1 prospekt, 62, bld. А e-mail: bagrationovskoye@ Mozhayskoye branch e-mail: [email protected] raiffeisen.ru Mozhayskoye shosse, 2 e-mail: mozhayskoye@ Polyanka branch Varshavskoye branch raiffeisen.ru B. Polyanka str., 3/9, bld. 1 Varshavskoye shosse, 64, bld. 1 e-mail: [email protected] e-mail: varshavskoye@ Moscow-City branch raiffeisen.ru Testovskaya str., 10 Preobrazhenskoye branch e-mail: moscow-city@ Preobrazhenskaya str., 2, bld. 1 Dmitrovskoye branch raiffeisen.ru e-mail: preobrazhenskoye@ Butyrskaya str., 77 raiffeisen.ru e-mail: dmitrovskoye@ Mytishchi branch raiffeisen.ru Mytishchi, Komarova str., 2, Profsoyuznoe branch bld. 3 Profsoyuznaya str., 20/9 Kolomenskoye branch e-mail: [email protected] e-mail: profsoyuznoye@ Andropova prospekt, 42, bld. 1 raiffeisen.ru e-mail: kolomenskoye@ Novy Arbat branch raiffeisen.ru Novy Arbat str., 36/9 Rechnoy Vokzal branch e-mail: [email protected] Leningradskoye shosse, 68 Krasnye vorota branch e-mail: [email protected] Orlikov lane, 8 Odintsovo branch e-mail: krasnye_vorota@ Odintsovo, Mozhayskoye Romanov Dvor branch raiffeisen.ru shosse, 112a Romanov lane, 4 e-mail: [email protected] e-mail: [email protected] Krylatskiye Kholmy branch Krylatskaya str., 17, bld. 1 Ostozhenka branch Rublevskoye branch e-mail: krylatskiye_kholmy@ Ostozhenka str., 27, bld. 1 Rublevskoye shosse, 22, bld. 1 raiffeisen.ru e-mail: ostozhenka@ e-mail: [email protected] raiffeisen.ru Kutuzovskoye branch Sadovo-Triumfalnoye Kutuzovsky prospekt, 34, Otradnoye branch branch bld. 14 Khachaturyana str., 20 M. Dmitrovka str., 20 e-mail: [email protected] e-mail: otradnoye@ e-mail: sadovo_triumfalnoye@ raiffeisen.ru raiffeisen.ru Leningradsky prospekt branch Perovo branch Semyonovskoye branch Leningradsky prospekt, 39A Zeleny prospekt, 22 Semenovsky lane, 21 e-mail: [email protected] e-mail: [email protected] e-mail: [email protected]

Leninsky 32 branch Petrovka branch Smolenskoye branch Leninsky prospekt, 32 Petrovka str., 5 Smolensky boulevard, 13, bld. 1 e-mail: [email protected] e-mail: [email protected] e-mail: [email protected]

80 Addresses and Contacts

Sukharevskoye branch Zhulebino additional office Smolenskaya 28 Prospekt Mira, 3/1 Lermontovsky prospekt, 6 additional office e-mail: soukharevskoye@ e-mail: [email protected] Smolenskaya-Sennaya square, 28 raiffeisen.ru e-mail: Smolenskaya28@ Zelenogradsky raiffeisen.ru Sushchevsky val branch additional office Obraztsova str., 3 Zelenograd, Tsentralny pros- Tallinskaya 26 e-mail: [email protected] pekt, bld. 435A additional office e-mail: zelenogradskoye@ Tallinskaya str., 26 Taganskoye branch raiffeisen.ru e-mail: [email protected] Nikoloyamskaya str., 13/2 e-mail: [email protected] Zemlyanoy val Tverskaya 25 additional office additional office Tverskoye branch Zemlyanoy Val str., 7/1-2, bld. 1 Tverskaya str., 25/12, bld. 1 1st Tverskaya-Yamskaya str., e-mail: Zemlyanoy_val@ e-mail: [email protected] 5/2 raiffeisen.ru e-mail: [email protected] Altufievskoye 40 Kosmonavtov 4 operational cash office Tishinskoye branch additional office Altufievskoye shosse, 40D Tishinskaya square, 6, bld. 1 Kosmonatov str., 4, bld. 1 e-mail: [email protected] e-mail: [email protected] Balchug operational cash office Troitskoye branch Leninsky prospekt 66 Balchug str., 1 Troitskaya str., 17, bld. 1 additional office e-mail: [email protected] Leninsky prospekt, 66 Borovskoye 6 operational e-mail: [email protected] cash office Universitet branch Borovskoye shosse, 6 Michurinsky prospekt, 7 Leninsky prospekt 148 e-mail: [email protected] additional office Vargi 8 operational Leninsky prospekt, 148 cash office Tsarev Sad branch e-mail: Leninsky148@ Akademika Vargi str., 8, bld. 1 Bolotnaya str., 10 raiffeisen.ru e-mail: [email protected] Vidnoye operational office Marii Ulyanovoy 9 Moscow region, Leninsky Tsentralnoye branch additional office district, Vidnoye, Leninsky prospekt, 15A Marii Ulyanovoy str., 9, bld. 4 Solnechny microdistrict, 10 e-mail: [email protected] e-mail: [email protected] Volgogradsky 11 Shmitovsky branch Na Novom Arbate operational cash office Shmitovsky prospekt, 19 additional office Volgogradsky prospekt, 11 e-mail: [email protected] B. Molchanovka str., 23/38, bld. 2 Volgogradsky 73 Bakuninskaya 10/12 e-mail: [email protected] operational cash office additional office Volgogradsky prospekt, 73, Bakuninskaya str., 10 -12, Na Novopeschanoy branch bld. 1 bld. 5 Novopeschanaya str., 20/10, e-mail: bakuninskaya@ bld. 1А Gorki-2 operational cash raiffeisen.ru e-mail: Na_novopechanoy@ office raiffeisen.ru Moscow region, Odintsovo Volgogradsky prospekt 9 district, Gorsky rural district, additional office Prospekt Mira 70 Gorki-2, bld. 23 Volgogradsky prospekt, 9, additional office bld. 1 Prospekt Mira, 70, bld. 1 Isakovskogo 6 operational e-mail: Volgogradsky9@ e-mail: Prospect_mira@ cash office raiffeisen.ru raiffeisen.ru Isakovskogo str., 6, bld. 2

81 Addresses and Contacts

Komsomolskaya 6 Raiffeisenbank Volzhsky additional office operational cash office in Belgorod Volgograd region, Volzhsky, Komsomolskaya square, 6, Profsoyuzov boulevard, 16 bld. 1 Belgorodsky branch Knyazya Trubetskogo str., 28 Park House Lyublinskaya 60 e-mail: belgorod@ additional office operational cash office raiffeisen.ru 30-letiya Pobedy boulevard, 21 Lyublinskaya str., 60, bld. 1

Mitinskaya 53 operational Raiffeisenbank Raiffeisenbank cash office in Blagoveshchensk in Voronezh Mitinskaya str., 53 Blagoveshchensky branch Voronezhsky branch Mokhovaya operational Pionerskaya str., 32/2 Svobody str., 14 cash office e-mail: blagoveshensk@ e-mail: [email protected] Vozdvizhenka str., 4/7, bld. 2 raiffeisen.ru e-mail: [email protected] Solnechy ray Operational cash office additional office Odintsovo operational Zaburkhanovskaya str., 100 20-letiya Oktyabrya str., 90 cash office Odintsovo, Mozhayskoye shosse, 159 Raiffeisenbank Raiffeisenbank in Bryansk in Ekaterinburg Chasovaya 13 operational cash office Bryansky branch Uralsky branch Chasovaya str., 13 Krasnoarmeyskaya str., 65 Krasnoarmeyskaya str., 10 e-mail: [email protected] e-mail: ekaterinburg@ Shirokaya 31/5 raiffeisen.ru operational cash office Operational cash office Shirokaya str., 31/5 Prospekt Lenina, 39 Plotinka branch Malysheva str., 31К

Raiffeisenbank Raiffeisenbank Na Radicsheva in Anapa in Vladivostok additional office Radicsheva str., 12 Anapsky branch Vladivostoksky branch Grebenskaya str., 3 Prospekt Ostryakova, 8 e-mail: [email protected] e-mail: vladivostok@ Raiffeisenbank raiffeisen.ru in Essentuki Anapsky branch Gorkogo str., 7 Okeansky branch Essentuksky branch Okeansky prospekt., 8 Kislovodskaya str., 3 Novorossiysky e-mail: [email protected] additional office Additional office Novorossiysk, Engelsa/ Primorsky Kray, Artyom, Frunze Novorossiyskikh partizan str., 51 Raiffeisenbank str., 50 in Zheleznogorsk Raiffeisenbank Zheleznogorsky branch Raiffeisenbank in Volgograd Lenina str., 13 in Barnaul e-mail: zheleznogorsk@ Volgogradsky branch raiffeisen.ru Barnaulsky branch Prospekt Lenina, 35 Prospekt Lenina, 163 e-mail: volgograd@ Additional office e-mail: [email protected] raiffeisen.ru Lenina str., 16

82 Addresses and Contacts

Raiffeisenbank Raiffeisenbank Raiffeisenbank in Zlatoust in Kazan in Kemerovo

Zlatoustovsky branch Kazansky branch Kemerovsky credit-cash Kirova str., 1 Nikolaya Ershova str., 35A office e-mail: [email protected] e-mail: [email protected] Nogradskaya str., 15A e-mail: credit_kemerovo@ Additional office raiffeisen.ru 40 let Pobedy str., 2 Raiffeisenbank in Kaliningrad Additional office Raiffeisenbank in Kirov Chelyabinsk region, Miass, Kaliningradsky branch Prospekt Oktyabrya, 72 Kirova str., 1 Volgo-Vyatsky branch e-mail: [email protected] Engelsa str., 66

Raiffeisenbank Ploshad’ pobedy branch Centralny additional in Ivanovo Teatralnaya str., 30 office Oktyabrsky prospekt., 125 Ivanovsky branch Palekhskaya str., 10 Raiffeisenbank Sovetsk additional office in Kaluga Kirov region, Sovetsk, Additional office Kondakova str., 24 Karl Marks str., 42/62 Kaluzhsky branch Tulskaya str., 15 Operational cash office e-mail: [email protected] Prudnaya str., 51 Raiffeisenbank in Izhevsk Additional office Mira square, 2 Raiffeisenbank Izhevsky branch in Krasnodar Gorkogo str., 156 e-mail: [email protected] Raiffeisenbank Kubansky branch on Kamchatka Severnaya str., 311/1 Additional office e-mail: [email protected] Vorovskogo str., 172 Kamchatsky branch Petropavlovsk-Kamchatsky, Krasnodarsky branch Artilleriyskaya str., 5/1 Krasnaya str., 155/1 Raiffeisenbank e-mail: [email protected] in Irkutsk Nikolskoye additional office Raiffeisenbank Irkutsky branch Kamchatka region, Aleutsky in Krasnoyarsk Rabochaya str., 2A district, Nikolskoye village, e-mail: irkutsk@ Gagarina str., 4 Krasnoyarsky branch raiffeisen.ru Prospekt Mira, 74A Elizovo additional office e-mail: krasnoyarsk@ Additional office Elizovo, Pogranichnaya str., 1 raiffeisen.ru Furie str., 16 Ossora additional office Eniseysky branch Angarsky additional Koryaksky autonomous area, Prospekt Mira, 5 office Karaginsky district, Angarsk, 7A microdistrict, 6 Ossora, Lukashevskogo str., 57, Additional office office 20 78 Dobrovolcheskoy brigady Bratsky additional str., 14, bld. А office Vilyuchinsk-3 Bratsk, Komsomolskaya str., additional office Additional office 38B Vilyuchinsk-3, Gusarova str., 37 Televizornaya str., 1, bld. 4

83 Addresses and Contacts

Raiffeisenbank Studenchesky Permsky branch in Kursk additional office Sovetskaya str., 72 Karl Marks str., 47/2 e-mail: [email protected] Kursky branch e-mail: studenchesky.nsk@ Dzerzhinskogo str., 90B raiffeisen.ru e-mail: [email protected] Raiffeisenbank Novosibirsky branch in Petrozavodsk Dusi Kovalchuk str., 258/1 Raiffeisenbank Petrozavodsky branch in Lipetsk Na Krasnom Lenina prospekt, 26 additional office e-mail: petrozavodsk@ Lipetsky branch Krasny prospekt, 28 raiffeisen.ru Oktyabrskaya str., 1 e-mail: [email protected] Berdsk additional office Novosibirsk region, Berdsk, Raiffeisenbank Na Pervomayskoy branch Lenina str., 89/8 in Rostov-on-Don Pervomayskaya str., 101 Rostovsky branch Raiffeisenbank Kirovsky prospekt, 40A Raiffeisenbank in Omsk e-mail: [email protected] in Magadan Omsky branch Soborny additional office Magadansky branch B. Khmelnitskogo str., 226 Soborny lane, 22/58/55 Parkovaya str., 6A e-mail: [email protected] e-mail: [email protected] Tsentralny additional office Raiffeisenbank Karl Marks prospekt, 16 in Samara Raiffeisenbank in Nizhny Novgorod Sovetsky additional office Samarsky branch Neftezavodskaya str., 17 Molodogvardeyskaya str., 180 Povolzhsky branch е-mail: [email protected] M. Gorkogo str., 117 Operational cash office e-mail: nizhny_novgorod@ Lenina str., 24 Volzhsky branch raiffeisen.ru Novo-Sadovaya str., 10

Avtozavodsky Raiffeisenbank Additional office additional office in Oryol Togliatti, Avtozavodskoye Vedenyapina str., 1Б. shosse, 6, Park House Trade e-mail: avtozavodsky.nnv@ Orlovsky branch Center raiffeisen.ru Moskovskaya str., 17 e-mail: [email protected] Nizhegorodsky branch Raiffeisenbank M. Gorkogo str., 150 Additional office in Saint Petersburg Oryol region, Livny, Karl Marks str., 114 Severnaya stolitsa branch Raiffeisenbank Moyka emb., 36 in Novosibirsk Operational cash office e-mail: common.spb@ Komsomolskaya str., 287 raiffeisen.ru Sibirsky branch Uritskogo str., 20 Avstriyskaya ploshchad' e-mail: [email protected] Raiffeisenbank branch in Perm Kamennoostrovsky prospekt, Centralny additional office 13/2 Ordzhonikidze str., 23 Kamsky branch e-mail: avstriyskaya.spb@ e-mail: [email protected] Ordzhonikidze str., 101 raiffeisen.ru

84 Addresses and Contacts

Vasileostrovskoye branch Tekhnologichesky institute Raiffeisenbank Sredny prospekt, 35 branch in Sochi e-mail: vasileostrovskoye.spb@ Bronnitskaya str., 2/70 raiffeisen.ru e-mail: tekhnologichesky.spb@ Sochinsky branch raiffeisen.ru Ostrovskogo str., 55/1 Kirochnaya ulitsa branch Kirochnaya str., 24 Park Pobedy branch e-mail: Kirochnaya.spb@ Mosckovsky prospekt, 186А Raiffeisenbank raiffeisen.ru e-mail: park_pobedy.spb@ in Stavropol raiffeisen.ru Komendantsky prospekt Stavropolsky branch branch Primorskoye branch Mira str., 237 Komendantsky prospekt, 13, Savushkina str., 127A e-mail: stavropol@ bld. 1, liter ”A” e-mail: primorskoye.spb@ raiffeisen.ru e-mail: komendantsky@ raiffeisen.ru raiffeisen.ru Additional office Volynsky additional office Mira str., 355/Lomonosova Leninsky prospekt branch Volynsky lane, 3А str., 38 Novatorov boulevard, 11 e-mail: common.spb@ e-mail: [email protected] raiffeisen.ru Raiffeisenbank Ligovsky prospect branch in Stary Oskol Ligovsky prospekt, 105A Raiffeisenbank e-mail: ligovsky.spb@ in Saransk Starooskolsky branch raiffeisen.ru Komsomolskaya str., 61 Saransky branch e-mail: stary_oskol@ Maly prospekt branch Prospekt Lenina, 7 raiffeisen.ru Maly prospekt, 22 e-mail: [email protected] e-mail: maly_prospekt@ Gubkinsky additional raiffeisen.ru Additional office office Prospekt 60 let Oktyabrya, Gubkin, Kosmonavtov str., 10 Moskovsky prospekt branch 117 Moskovsky prospekt, 216 e-mail: moskovsky.spb@ Raiffeisenbank raiffeisen.ru Raiffeisenbank in Surgut in Saratov Nevskoye branch Surgutsky branch Nevsky prospekt, 102A Saratovsky branch Profsoyuzov str., 18 e-mail: nevskoye.spb@ Chernyshevskogo str., 60/62 e-mail: [email protected] raiffeisen.ru e-mail: [email protected] Operational cash office Sadovaya ulitsa branch Additional office Nefteyugansk, Sadovaya str., 10/A Prospekt Kirova, 1 microdistrict 14, 9 e-mail: sadovaya_ulitsa@ raiffeisen.ru Operational cash office Raiffeisenbank Bazhova str., 17 Sennaya ploschad' branch in Smolensk Efimova str., 4A e-mail: sennaya.spb@ Smolensky branch Raiffeisenbank raiffeisen.ru Industrialnaya str., 2 in Syktyvkar e-mail: smolensk@ Staronevskoye branch raiffeisen.ru Syktyvkarsky operational Nevsky prospekt, 137 office e-mail: staronevskoye.spb@ Nikolskie vorota branch Pervomayskaya str., 62 raiffeisen.ru Zhukova str., 9 e-mail: [email protected]

85 Addresses and Contacts

Raiffeisenbank Raiffeisenbank Raiffeisenbank in Chita in Taganrog in Ufa Chita credit-cash office Taganrogsky branch Bashkortostan branch Krasnoyarskaya str., 31 Petrovskaya str., 88 Karl Marks str., 20 e-mail: [email protected] e-mail: [email protected] Raiffeisenbank in Yakutsk Raiffeisenbank Raiffeisenbank in Tomsk in Khabarovsk Yakutsk credit-cash office Dzerzhinskogo str., 23 Tomsky branch Khabarovsky branch Berdskaya str, 23 Turgeneva str., 96, bld. 4 e-mail: [email protected] Raiffeisenbank Operational cash office in Yaroslavl Frunzensky branch Zaparina str., 82 Prospekt Frunze, 40 Yaroslavsky branch Sobinova str., 15/14 Operational cash office Raiffeisenbank Nakhimova str., 13/1 in Chelyabinsk

Yuzhny Ural branch Raiffeisenbank in Tula Karl Marks str., 38 e-mail: [email protected] Tulsky branch Sovetskaya str., 2 Additional office e-mail: [email protected] Chelyabinsk region, Miass, Prospekt Oktyabrya, 72

Raiffeisenbank in Tyumen Raiffeisenbank in Cherepovets Tyumensky branch Kholodilnaya str., 114 Cherepovetsky branch e-mail: [email protected] Sovetsky prospekt, 105

86 Addresses and Contacts

Representative office of OOO Raiffeisen www.raiffeisen.ru Raiffeisen Zentralbank ­Capital Asset General Licence of Bank of Russia Austria AG Management N 3292. 119034 Moscow, Company Prechistensky lane, 14, 129090 Moscow, Romanov lane, bld. 1 4, bld. 2 www.raiffeisen-capital.ru e-mail: [email protected]

OOO Raiffeisen- Raiffeisen Non-State Leasing Pension Fund

109240 Moscow, Raiffeisen Nikoloyamskaya str., 13/2 129090 Moscow, Romanov lane, www.raiffeisen-leasing.ru 4, bld. 2 e-mail: [email protected] www.npfraiffeisen.ru e-mail: [email protected]

87