Introduction 3 Partnership 3 Representation 3 Highlights 4 Eligibility Criteria 5 Eligibility Factors 5 Timing of Changes 6 Index Construction 7 Approaches 7 Index Calculations 7 Index Maintenance 8 Rebalancing 8 Corporate Actions 8 Currency of Calculation 9 Base Date 9 Float Adjustment 9 Other Adjustments 9 Settlement Values for Futures on the RTS Index 10 Settlement Price 10 Index Governance 11 Index Committee 11 Partner 11 Index Policy 12 Announcements 12 Holiday Schedule 12 Recalculation Policy 12

Standard & Poor’s: RTS Indices Methodology 1 Real-Time Calculations 13 Index Precision 13 Index Dissemination 14 Tickers 14 Web site 14 Appendix 1: Methodology of the RTS Index Calculation 15 General Provisions 15 General Procedure for Index Calculation 15

Stock Price Calculation (Pi) 17 Calculating the float-adjustment coefficient 18 Changes to the Adjusting Coefficient Z 19 Calculation of Weighting Coefficients 19 List of Constituent Stocks 22 Treatment of Corporate Events 23 Procedure of Index calculation Control 25 Information Disclosure 25 Introduction of Changes to the Methodology of Calculation 26 Appendix 2: Methodology for the calculation of the indicative US$/Ruble exchange rate 27 General provisions 27 Calculation of the Exchange Rate 27 Information Disclosure 29 Amendments to the Methodology 29 S&P Contact Information 30 Index Management 30 Product Management 30 Index Operations & Business Development 30 Disclaimer 31

Standard & Poor’s: RTS Indices Methodology 2 Introduction

In response to international investors seeking high growth areas and new strategy plays, Standard & Poor’s added Russia’s RTS Index (RTSI) to its global index portfolio in 2006. With the inflow of capital to Russia at the end of 2005, fueling demand for transparent and rigorous benchmarks that not only capture the uniqueness of Russian equities but also faithfully measure the market’s performance, Standard & Poor’s recognized the importance of expanding its existing network of exchange partnerships in key geographies.

The RTS Index is the premier benchmark index to measure the fast growing Russian equity market. It includes 50 of the largest and most liquid stocks listed on the Russian Trading System (RTS).

Partnership

Standard & Poor’s is in partnership with the Russian Trading System (RTS) to promote and market the index. Standard & Poor’s also provides advice and consultancy on internationally accepted index methodology and maintenance policies by its representation on the RTS Stock Exchange Information Committee.

Representation

The RTS Index is an official benchmark for the exchange. Since its inception in September 1995, it has become the stock market indicator for Russia. With the inclusion of Gazprom on March 15th, 2006, the RTS Index captures more than 85% of the Russian stock market capitalization.

The RTS-2 Index (the second-tier stock index) is the benchmark of trading activity in second-tier stocks, based on liquidity and market capitalization.

The RTS Sector Indices were launched in 2007 in response to the growing investor demand for sector differentiation of investment strategies. Their constituent lists include stocks pertaining to a particular sector of the Russian economy. This series currently includes seven indices, but could be further expanded to cover additional sectors of the Russian economy.

Standard & Poor’s: RTS Indices Methodology 3 Highlights

Availability Mkt Currency Flo Consti- No. of Cap- Real Cap of Cal- at Index tuent Index (Code) Stocks ping Time Wgt culation Adj Levels Levels RTS Index (RTSI) 50 15% Yes Yes US$, RUB Yes 01-Sep- 01-Oct- 1995 2001 RTS-2 Index 77 15% Yes Yes US$, RUB Yes 31-Dec- 31-Dec- (RTS2) 2003 2003 RTS Sector Indices: RTS-Oil & Gas (RTSog) 12 25% Yes Yes US$, RUB Yes 05-Jan- 05-Jan- 2000 2000 RTS-Telecom (RTStl) 12 25% Yes Yes US$, RUB Yes 05-Jan- 05-Jan- 2000 2000 RTS-Metals & Mining 13 25% Yes Yes US$, RUB Yes 31-Dec- 31-Dec- (RTSmm) 2003 2003 RTS-Industrial (RTSin) 10 25% Yes Yes US$, RUB Yes 31-Dec- 31-Dec- 2003 2003 RTS-Consumer & Retail 12 25% Yes Yes US$, RUB Yes 31-Dec- 31-Dec- (RTScr) 2004 2004 RTS-Electric Utilities 16 25% Yes Yes US$, RUB Yes 11-Jan- 11-Jan- (RTSeu) 2005 2005 RTS-Financials (RTSfn) 9 25% Yes Yes US$, RUB Yes 11-Jan- 11-Jan- 2005 2005

Standard & Poor’s: RTS Indices Methodology 4 Eligibility Criteria

All stocks listed on the Russian Trading System (RTS) Stock Exchange are eligible for inclusion. The RTS index is constructed with a fixed number of constituents. The aim is not to replicate a fixed percentage of the market capitalization, but to design a highly liquid and tradable index whose total market capitalization is large enough to approximate the market segment it is capturing, while keeping the number of stocks at a minimum. This creates a highly cost-effective, easily replicable trading instrument that provides an excellent barometer of the market’s performance. The fixed number of stocks also ensures minimum turnover, as changes are typically made due to corporate activity or a reduction in a stock’s size or liquidity that makes it ineligible for inclusion.

Eligibility Factors

Market Capitalization. Market capitalization is a key criterion for stock selection. A stock’s weight in an index is determined by the float-adjusted market capitalization of the stock. All strategic holdings are classified as either corporate, private or government holdings as determined by the Exchange, through recommendations of the Index Committee, and are removed from the float-adjusted market capitalization. Companies ranked by float-adjusted market capitalization are included in the index subject to their having met the stringent liquidity criteria described below. Each company’s market capitalization is capped at 15% in the RTSI and RTS2, and at 25% in the RTS Sector Indices, to restrict the weight of any one company dominating the entire index.

Liquidity. Securities that do not meet the following criteria over the three month period preceding the date of the revision are excluded from the index eligibility list: 1. The average number of companies-brokers that submitted the “bid” and “ask” quotes for the security at the end of the trading session is at least two. 2. The average spread between the “ask” and the “bid” prices at the end of the trading session is less than or equal to 15%, as compared to the buying price. 3. The security should have two-sided quotes in the trading system at the end of the trading session for at least 90% of the trading days of a given period. 4. The daily average number of transactions in this security is greater than or equal to 0.5. 5. The daily average trading volume in this security is greater than or equal to US$ 3,000. Domicile. Only stocks of a Russian domicile are eligible to be included in the index. A stock’s domicile is based on a number of criteria that include headquarters of the company, registration, listing of stock, place of operations, and residence of the senior

Standard & Poor’s: RTS Indices Methodology 5 officers. In today’s world of multinationals, it is hard to fix one set rule for domicile. The RTS Stock Exchange Information Committee takes all criteria into account before deciding on the domicile of a company.

Eligible Securities. All common and preferred shares listed on the RTS (which are of an equity and not of a fixed income nature) are eligible for inclusion in the Indices. Convertible stocks, bonds, warrants, rights, and preferred stocks that provide a guaranteed fixed return are not eligible.

Timing of Changes

Changes in the index constituents enters into force on the first business day following March 14th, June 14th, September 14th and December 14th.

Additions. Four months before each revision date (i.e., the 15th of February, May, August, and November) the complete list of securities is compiled. The liquidity filter is, then, applied to them. After that, the stocks are ordered by float-adjusted market capitalization.

RTS Index: The top 50 stocks, in terms of size, are identified for inclusion in the RTS Index.

RTS-2 Index: The list of stocks used in the RTS-2 Index calculation includes stocks with mid-to-low capitalization.

RTS Sector Indices: The list of stocks includes stocks of Russian companies selected by the sector criteria. Sector division of the stocks is based on the expert evaluation using both Russian and international industry classification systems. The lists of stocks of the RTSI and RTS2 are used as a basic list of securities. The number of stocks in the RTS Sector Indices currently varies from about nine to 16. Only those stocks for which the share of the securities with float exceeding 5% are included.

If the candidates are different from the current composition of the index, the RTS Stock Exchange Information Committee decides if the new additions and deletions should be made at the next rebalancing date or if these new additions should be kept on a watch list for some time. This is done in order to reduce frequent turnover based on sudden and temporary stock price fluctuations. The final decisions are made a month before implementation.

Deletions. Stocks may be deleted due to mergers, acquisitions or spin-offs, as well as by a substantiated decision of the Information Committee. Otherwise, as noted above, every quarter a new eligible stock list is drawn up to review against the current constituents. If this new list warrants changes in the existing constituent list, then the smallest existing constituents are dropped in favor of the new additions. Again, the RTS Index Information Committee will decide whether to make the deletions immediately or put the stocks on a watch list.

Standard & Poor’s: RTS Indices Methodology 6 Index Construction

Approaches

The RTS Indices are real-time market capitalization-weighted indices. Each Index is calculated during the primary trading session of the Exchange and during an additional trading session (if any) following any change in the price of any constituent (security) of the index. The first Index value calculated during the primary (additional) trading session is calculated 15 seconds after the trading session starts and is considered the opening value, and the last calculated Index value during the primary (additional) trading session is considered the closing value.

Index Calculations

The RTS Indices are calculated both in U.S. dollars and Russian rubles. The ruble index is based on the dollar-denominated index, and is considered auxiliary. The index is calculated every 15 seconds.

Please refer to the Appendix 1 for mathematical formulae detailing the calculations.

Standard & Poor’s: RTS Indices Methodology 7 Index Maintenance

Rebalancing

The decision to change the list of index constituents (stocks) and adjusting coefficients is made by the Russian Trading System (RTS) Stock Exchange Index Committee once every three months. The new list of index constituents becomes effective as of the 15th of March, June, September and December. The coefficients capping the shares of any securities against total market capitalization are calculated once every three months on the 1st of March, June, September and December, and are made effective on the 15th of the month.

Securities can be removed from the list of index constituents before the appointed time if one of the following events happens: • The security is removed from the list of securities admitted to trading on the RTS Stock Exchange. • Information about changes in ownership of the company-issuer becomes public and this information reveals that the stock is no longer considered publicly available for trading. Frequency. The index is calculated real-time on all days that the stock exchange is open. (The index is calculated every 15 seconds during the primary trading session of the Exchange and during an additional trading session (if any) on all days that the stock exchange is open).

Share Updates. Shares are updated every quarter on the 15th of March, June, September and December.

Corporate Actions

On any given day, the index value is the quotient of the total available market capitalization of the index’s constituents and its “adjusting coefficient.” Continuity in index values is maintained by adjusting the coefficient for all changes in the constituents’ share capital after the base date. This includes additions and deletions to the index, rights issues, share buybacks and issuances and spin-offs. The coefficient’s time series is, in effect, a chronological summary of all changes affecting the base capital of the index. The coefficient is adjusted such that the index value at an instant just prior to a change in base capital equals the index value at an instant immediately following that change.

Standard & Poor’s: RTS Indices Methodology 8 To prevent such discrepancies that could result from changes in the constituent stock list or adjusting individual stock’s capping coefficients, the adjusting coefficient Zn is recomputed as follows:

MCn + = n1n *ZZ ' MCn

where and MC´n = the index market capitalization computed immediately before the transaction and MCn = the index market capitalization computed immediately after the transaction.

Please refer to the Appendix 1 for further information on index calculations and related coefficients.

Currency of Calculation

All prices are in U.S. dollars. If orders and trades prices are expressed in Russian rubles, they are converted into the U.S. dollars at the exchange rate of the Bank of Russia as of the day when the given price is calculated unless otherwise specified by the Board of Directors of the Exchange.

Please refer to the Appendix 2 for further information on the Exchange rate calculation.

Base Date

The RTS Index’s base date is September 1st, 1995 with a base value of 100.

The RTS-2 Index’s base date is December 31st, 2003 with a base value of 567.25.

The RTS Sector Indices’ base dates are January 11, 2005 with base values of 100.

Float Adjustment

All stocks are adjusted for government, strategic and corporate long-term holders, and the float adjusted market capitalization is used for calculating the index.

Other Adjustments

All stocks are capped at 15% in the RTSI and RTS2, and at 25% in the RTS Sector Indices, in terms of their index weight versus the total index market capitalization.

Please refer to the Appendix 1 for details on the capping procedure.

Standard & Poor’s: RTS Indices Methodology 9 Settlement Values for Futures on the RTS Index

Settlement Price

Underlying Asset The RTS Index is managed and calculated by the RTS Stock Exchange. Contract Size (Trading Unit) US$ 2 times the RTS Index Quotation 100 times the RTS Index Minimum Price Movement 5 (0.05 index points or US$ 0.1 per contract) (Tick Size and Value) Settlement Cash-settled Contract Months 4 successive quarterly months in the cycle March, June, September and December Last Trading Day Trading day preceding the 15th of the settlement month Final Settlement Day Business day following the last trading day Final Settlement Price US$ 2 times the average value of RTS Index calculated during the last trading hour of the last trading day

Standard & Poor’s: RTS Indices Methodology 10 Index Governance

Index Committee

The Russian Trading System (RTS) Stock Exchange Index Committee performs general control and amendments to the existing methodology.

Partner

Standard & Poor’s is represented on the RTS Stock Exchange Information Committee and is committed to the promotion and marketing of these indices.

Standard & Poor’s: RTS Indices Methodology 11 Index Policy

Announcements

All index-related announcements are posted on the Russian Trading System (RTS) Web site. Changes impacting the constituent list are posted on its Web site no later than two weeks prior to the change.

Please refer to the RTS Web site at www.rts.ru.

Holiday Schedule

For the calculation of indices, the RTS Index follows the official holiday schedule approved by the Russian Federation Government.

Recalculation Policy

In the following cases the RTS Stock Exchange Information Committee can recalculate index values: • A technical error occurred • A non-standard situation occurred that was not related to market changes and was not accounted for by this methodology, but nevertheless significantly influenced the index Should a technical error be detected, the index is recalculated as soon as possible. The value is recalculated only if the error happened no earlier than during the previous trading session.

If a non-standard situation occurs, the index value is recalculated following the appropriate decision of the RTS Stock Exchange Information Committee and is based on its expert opinion. The values can be recalculated going back no more than the last five trading sessions.

Since recalculation of the index is an extraordinary event, the recalculation of the index will be fully justified. If the index is recalculated, an appropriate notice should be available on the RTS Web site.

For more information on index recalculation policy, please refer to the RTS Web site at www.rts.ru.

Standard & Poor’s: RTS Indices Methodology 12 Real-Time Calculations

The indices are calculated real-time, every 15 seconds.

Index Precision

• Index values are calculated to two decimal places • Prices are rounded to five decimal places

• Index adjusting coefficients (Zn) to seven decimal places

• Float-adjustment factors (Wi) to two decimal places • Weight capping adjustments (C) to seven decimal places Please refer to the Appendix 1 for further details on the variables listed above.

Standard & Poor’s: RTS Indices Methodology 13 Index Dissemination

Tickers

Reuters Bloomberg RTS Index .IRTS RTSI$ RTS-2 Index .RTS2 RTS2$ RTS Sector Indices RTS – Oil & Gas .RTSOG RTSOG$ RTS – Telecom .RTSTL RTSTL$ RTS – Metals & Mining .RTSMM RTSMM$ RTS – Industrial .RTSIN RTSIN$ RTS – Consumer & Retail .RTSCR RTSCR$ RTS – Electric Utilities .RTSEU RTSEU$ RTS – Financials .RTSFN RTSFN$

Web site

Daily index value, index constituents, methodology, and special announcements are available on the Russian Trading System (RTS) Web site at www.rts.ru.

Standard & Poor’s: RTS Indices Methodology 14 Appendix 1: Methodology of the RTS Index Calculation

General Provisions

The RTS Index (the Index) is the composite index of the Russian stock market calculated by the OJSC "Russian Trading System" Stock Exchange (the Exchange) in accordance with this Methodology.

The index is used by the Exchange for trading suspension in accordance with regulatory acts of the federal executive body for the securities market.

The name for the RTS Index in Russian is "Индекс РТС"; the name for the RTS Index in English is "RTS Index". The Index’s code is “RTSI”.

The verbal mark "Индекс РТС" is a trade mark of OJSC RTS, registered in the State register of trade and service marks of the Russian Federation on March 15, 2007 (certificate for the trade mark № 322604).

The verbal mark "RTS Index" is a trade mark of OJSC RTS, registered in the State register of trade and service marks of the Russian Federation on May 17, 2007 (certificate for the trade mark № 326584).

General Procedure for Index Calculation

The RTS Index is calculated during the primary trading session of the Exchange and during an additional trading session (if any). The RTS Index values, calculated during the primary and additional trading sessions are calculated separately.

The RTS Index is calculated every 15 seconds.

The first Index value calculated during the primary (additional) trading session is calculated 15 seconds after the trading session starts and is considered the opening value. The last calculated Index value during the primary (additional) trading session is calculated at the moment of the session closing and is considered the closing value.

The Board of Directors of the Exchange is entitled to change the start and end times of the Index calculation. The Exchange market participants shall be notified of the information on the resolutions taken by the Board of the Directors in accordance with this clause through published notifications on the Web site www.rts.ru (the Exchange’s Web site), no later than five business days before those changes come into force, unless the Board of Directors of the Exchange determines a different time period.

Standard & Poor’s: RTS Indices Methodology 15

The RTS Index is computed by dividing the total market capitalization of the Index component securities (Stocks) by the total market capitalization of the same securities as of the initial date of the Index calculation, multiplied by the Index value as of the initial date of the Index calculation and the adjusting coefficient by the following formula:

MC IZI ∗∗= n , nn 1 MC 1 where: th In – the Index value as of the n moment of the Index calculation; th MCn - total market capitalization of all Stocks as of the n moment of the Index calculation;

MC1 - total market capitalization of all Stocks as of the initial date of the Index calculation;

I1 – the Index value on the initial date of the Index calculation; th Zn – adjusting coefficient value as of the n moment of the Index calculation.

Index values are expressed in index points and are calculated to two decimal places.

The following initial values are used as of September 1, 1995 (the initial date of the Index calculation):

I1 = 100;

MC1 = US$ 12,666,080,264;

Z1 = 1.

The total market capitalization of all Stocks as of the nth moment of the Index calculation is calculated as follows:

N , n ∑ i ∗= W*C*QPMC iii =1i

where: N - the total number of Stocks. One share is equal to a share of one category (type) of one issuer; th Pi - price of the i Stock; th Qi - the total number of shares of the i Stock; th Wi – the adjustment coefficient reflecting the number of outstanding i Stocks available on the open market (float-adjustment coefficient); th Сi – the coefficient restricting the share of the i Stock in total market capitalization (weighting coefficient).

th For the purpose of this Methodology the total number of shares of the i Stock (Qi) is determined as the total number of the ith Stocks of all issues (additional issues) which meet the requirements of the Federal law “On Securities Market” and regulatory acts of

Standard & Poor’s: RTS Indices Methodology 16 the federal executive body for the securities market, for the admission of securities to trading on markets of organizers of trading, but excluding the Stocks purchased by the issuer as well as redeemed (cancelled) Stocks of the specified issues (additional issues).

th The total number of shares of the i Stock (Qi) is calculated through the results of the trading day preceding the day when the Exchange publishes the information on constituent changes on its Web site, except for any exceptions detailed below.

The Exchange also calculates a ruble-denominated index using the following formula:

K n II nrn ∗= , K 1 where: th Irn – ruble-denominated Index value as of the n moment of calculation; th In – the Index value as of the n moment of the Index calculation; th Kn – the US dollar exchange rate against the Russian ruble as of the n moment of calculation. This is the US dollar exchange rate against the Russian ruble fixed by the Bank of Russia on the day when the ruble-denominated Index is calculated, unless otherwise determined by the Board of Directors of the Exchange;

K1 – the US dollar exchange rate against Russian ruble as of the initial date of the Index calculation (K1 = 4.447).

Stock Price Calculation (Pi)

th The i Stock price, Pi, equals the price for the last trade.

If the price for the best bid for the ith Stock exceeds the last calculated price for the stock, Pi, but does not exceed the price for the best indirect offer, then Pi equals the best bid for the ith Stock.

th If the best offer for the i Stock is lower than the last calculated price for the stock, Pi, but th not lower than the best indirect bid, then Pi equals the best offer for the i Stock.

In order to determine the price for the ith Stock, sale and purchase trades and orders for such trades are taken into account.

The trading mode, where the trades and orders are made to be used for calculating the price for the stock, is determined by the sole executive body of the Exchange through recommendations of the Index Committee. In this regard:

• In the Electronic trading mode for calculating the price for the ith stock, indirect orders and trades concluded based on indirect orders are taken into account; • In the Non-anonymous trading mode for calculating the price for the ith stock, indirect orders and trades concluded based on indirect and direct orders are taken into account;

Standard & Poor’s: RTS Indices Methodology 17 • In the On-exchange trading mode with T+4 settlement for calculating the price for the ith stock, indirect orders and trades concluded based on indirect orders are taken into account.

A trade of the ith Stock concluded in the Non-anonymous trading mode is taken into account for calculating the price for the ith Stock on condition there are indirect bids and offers for the Stock submitted in the above-mentioned mode, and the price for the given trade is not lower than the best indirect bid for and does not exceed the best indirect offer for the ith Stock.

Only indirect orders submitted in the Electronic trading mode are taken into account for calculating the price of the ith Stock, in those cases where indirect orders in the Electronic and Non-anonymous trading modes are submitted at the same time

Orders and trades prices in US dollars are used to determine the price for the ith Stock in the process of calculating a dollar-denominated Index, If, in accordance with the Exchange documents, the orders and trades prices are expressed in Russian rubles, then the given prices are converted into US dollars at the exchange rate of the Bank of Russia as of the day when the given price is calculated, unless otherwise specified by the Board of Directors of the Exchange.

th The price for the i Stock (Pi) is calculated to five decimal places.

th The procedure for calculating the price for the i Stock (Pi) determined above shall not be applied in the case of splits and reverse splits, as described below.

Calculating the float-adjustment coefficient

The value of the float-adjustment coefficient, Wi, reflecting the number of outstanding shares of the ith Stock available to the open market is calculated on the List of constituent Stocks review date. The coefficient is determined through public data and expert opinion. Information, including indirect (beneficiary) owners, published by reputable information agencies and the Stock’s issuers is used for this analysis.

The coefficient is determined by the sole executive body of the Exchange based on the total number of Stocks (Qi) as of the last business day preceding the calculation date. The number of Stocks considered unavailable to the market is determined by the Exchange through recommendations of the Index Committee, based on expert opinion, with due account for the number of Stocks that are owned by the state, controlling shareholders, crossholders, management and other strategic investors.

If the securities of Russian companies are listed on foreign exchanges beyond the borders of the Russian Federation in accordance with the foreign law (depository receipts), then the number of shares that are counted in the float is raised by the number of the distributed Stocks in the following cases:

• If there are any limitations for acquiring the stock when exercising a right for the depositary receipts of Russian domiciled companies;

Standard & Poor’s: RTS Indices Methodology 18 • If the number of the depositary receipts (in ordinary share terms) exceeds the total number of Stocks (Qi) by at least 1.5 times, excluding the number of Stocks that are owned by the state, controlling shareholders, crossholders, management and other strategic investors

The value of the float-adjustment coefficient, Wi, is expressed in percent (%) and is rounded to the nearest 5%.

The Exchange discloses the value of the coefficient and any information on changes to its value, together with the grounds for such changes. This information is disclosed on the Exchange’s Web site no later than the day following the day when the given coefficient changed its value.

Changes to the Adjusting Coefficient Z

The adjusting coefficient, Z, is changed if there are changes in the List of constituent Stocks, the float-adjustment coefficients, Wi, the weighting coefficients, Сi, and/or in cases of corporate events as described below.

The adjusting coefficient, Z, is calculated by the following formula:

MC n , + ZZ n1n ∗= ' MCn

where:

Zn – the current value of adjusting coefficient Z;

Zn+1 – the new value of adjusting coefficient Z;

MCn – the total capitalization of all Stocks before any event described above; ' MCn – total capitalization of all Stocks after any event described above.

The adjusting coefficient Z is calculated accurate to seven decimal places.

Calculation of Weighting Coefficients

The aggregate weight of all of the ith Stocks in an index (Specific weight) is calculated by the formula:

∗ ∗ C*QPW iiii Wghti = N ,

∑ ii ∗∗ C*QPW ii =1i

where: th Wghti – the Specific weight of the i Stock; th Pi – the price of the i Stock; th Qi – the total number of shares of the i Stock; th Сi – the weighting coefficient of the i Stock;

Standard & Poor’s: RTS Indices Methodology 19 th Wi – the float-adjustment coefficient of the i Stocks; N – the total number of Stocks in the index.

The Specific weight of the securities of one issuer is the sum of the Specific weights of all categories of Stock of this issuer.

In order to limit the concentration of a given issuer’s stocks in the Index:

• No single issuer’s total Specific weight can exceed 15% (S = 15%) as of the day of the determination of the List of constituent Stocks. • No single issuer’s total Specific weight can exceed 30% (S = 30%) on the day following the effective date of the new List of constituent Stocks. • No single issuer’s total Specific weight can exceed 50% (S = 50%) at any moment of the Index calculation. where S is defined at the maximum weight of an individual issuer in an index, depending on the circumstances listed above.

The weighting coefficients, Сi, are calculated and updated using the following procedure:

The market-cap weight of each issuer’s Stocks are first calculated without any restricting coefficients, Сi

MCap j S j = N = N,...,1j ,

∑ MCap j =1j where: th Sj – the market-cap weight of all the Stocks of j issuer without any restricting coefficients, Сi; N – the number of issuers in the index.

, Mcap j = ∑ W*Q*P pjpjpj p where: th th Ppj – the price of the p category Stock of the j issuer; th th Qpj – the total number of the p category’s shares of Stock of the j issuer; th th Wpj – the float-adjustment coefficient of the p category Stock of the j issuer; p – a particular category of the Stocks of an issuer taken into account when calculating the Index.

The number of issuers, M, for whom j > SS is true (pent-up issuers) is calculated.

If M = 0, then the restricting coefficient Сi = 1for each Stock.

If M > 0, then an auxiliary market capitalization value, X, is calculated as follows:

Standard & Poor’s: RTS Indices Methodology 20

−MN

∑ MCap*S j X = =1j , 1 − S * M

−MN where the sum in the numerator ( ) is calculated using only those Stocks ∑ MCap j =1j

of the issuers for whom the condition j ≤ SS is true (issuers who do not exceed the maximum weight criterion).

' The new market-cap weight of the Stocks of each issuer, S j , are calculated as follows:

' MCap j S j = N ,

∑ MCap j =1j

with Mcapj using X, as calculated above, for the pent-up issuers (those for whom is true) and a value calculated by the formula for j > SS Mcap j = ∑ W*Q*P pjpjpj p the rest of the issuers.

' If there are issuers for whom the condition j > SS is still true, then a new number of pent-up issuers, M‘, is calculated and the steps specified above are repeated.

If, as a result of the steps specified above, there are no longer any issuers for whom ' the term j > SS is true, then the Сi coefficient is calculated for all categories of the Stocks of the pent-up issuers as follows:

X Ci = . W*Q*P iii

For the rest of the stocks Сi = 1.

Coefficients Сi are calculated accurate to seven decimal places.

The weighting coefficient, Сi, are calculated using the results of the trading day preceding the day when the Exchange publishes any information on changes to the List of constituent Stocks on its Web site.

If the Specific weight of the Stocks of any issuer exceeds 25% on the effective date of the new List of constituent stocks, the Exchange is entitled to take a decision on unscheduled calculations of the weighting coefficients with the purpose of meeting the requirements for restrictions set forth above.

Standard & Poor’s: RTS Indices Methodology 21

If the Specific weight of the Stocks of any issuer exceeds 40% on any trading day, the Exchange is entitled to take a decision on unscheduled calculations of the weighting coefficients with the purpose of meeting the requirements for restrictions set forth above.

List of Constituent Stocks

The List of constituent Stocks contains the name of the issuers and the Stock category (type).

The number of Stocks shall not exceed 50. There are no limitations on the number of stocks in the RTS 2 index.

Stocks are added to and deleted from the List of constituent Stocks whenever the List is reviewed and changes are ratified.

The Exchange reviews the List of constituent Stocks at least four times a year with any changes made effective on the first business day following March 14th, June 14th, September 14th and December 14th.

In addition, the Exchange reviews the List of constituent Stocks in the following cases:

• the Stocks are excluded from the list of shares admitted to trading on the Exchange; • the trading mode for stocks change; • a corporate event takes place; • upon the recommendation of the Index Committee.

When the List of constituent Stocks is reviewed off of the regular quarterly schedule, only stock deletions can be made to the List.

The List can be comprised of liquid shares of Russian stock companies and shares included in quotation lists of the Russian stock exchanges, including Quotation list “I” and shares admitted to trading without having gone through listing procedure. The number of issuers whose shares are included in the List of constituent Stocks shall not exceed 10.

The List of constituent Stocks is approved by the sole executive body of the Exchange through recommendation of the Index Committee. It is the Index Committee that determines if the shares are liquid based on expert opinion and with due regard to the following criteria: • average daily trading volume; • average daily number of trades; • supply and demand; • spread (difference between the best offer and the best bid); • size of capitalization, including float-adjusted shares; • stock company’s industry;

Standard & Poor’s: RTS Indices Methodology 22 • other factors that can influence the liquidity of the shares.

Only those Stocks which were previously on the list of candidates waiting to be included (the Waiting List) and the shares of the issuers whose securities recently had an IPO (Initial Public Offering) and Secondary Offering can be added to the List of constituent Stocks.

Stocks are added to the Waiting list on the condition that all criteria above are met. Information on the Waiting list constituents is published on the Exchange’s Web site.

Notifications of the changes to the List of constituents Stocks are published on the Exchange’s Web site no later than two weeks before the effective date of the new List of constituent Stocks.

Treatment of Corporate Events

Suspension of trading on the Exchange. If trading in the kth share is suspended on the Exchange for more than one trading day, the price Pk is used for the RTS Index calculation during the suspension. The price Pk is calculated as follows:

1 Pk = P k * Lk,

where: th Pk – the price for the k Stock used in the Index calculation; 1 th P k – the price for the k Stock on the trading day preceding the suspension;

Lk – a coefficient, as defined below.

∑ ii ∗∗ C*QPW ii ≠= ki,1i Lk = m ' ∑ ii ∗∗ C*QPW ii ≠= ki,1i where: th Pi – the current price for the i Stock; ' th P i – the price for the i Stock on the preceding trading day; th Qi – the total number of shares of the i Stock; th Wi – the float-adjustment coefficient of the i Stock; th Ci - the weighting coefficient of the i Stock.

th The coefficient, Lk, is calculated using securities of issuers in the same industry as the k Stock. If this number is lower than five, then the coefficient is calculated using all Stocks, except for the kth Stock. The Index Committee determines the industry of the Stocks.

Addition and redemption of securities. The admission and/or redemption (cancellation) of shares of the ith Stock trading on the Exchange do not serve as grounds for th recalculation of the total number of shares the i Stock (Qi). The given recalculation is

Standard & Poor’s: RTS Indices Methodology 23 performed in accordance with the established procedure specified in General Procedure for Index Calculation above.

Split and reverse split. For splits or reverse splits of the ith Stock, the Exchange recalculates the total number of shares (Qi) and the price (Pi ) on the effective date.

Reorganization of a company. When a company is reorganized, the Exchange will implement a decision based on the type of action and the recommendation of the Index Committee as follows:

• Merger of companies. In the case of a merger, the reorganized company is excluded from the List of constituent Stocks at a time determined by the Exchange, and upon recommendation of the Index Committee. • Reorganization of a joint stock company in the form of split-off. In the case of a split-off, the reorganized companies are excluded from the List of constituent Stocks at a time determined by the Exchange, and upon recommendation of the Index Committee • Reorganization of a company in the form of spin-off. In the case of a spin-off, the price of the parent company (Pi) is fixed at the end of the trading day preceding the effective date of the spin-off. This date and the determination of the price are made by the Exchange with the recommendation of the Index Committee. On the effective date of the spin-off, the Exchange recalculates the total number of the parent company (Qi) and its adjusting coefficient Z and the stock resumes trading. • Reorganization of a company in the form of acquisition. In the case of the acquisition of an index constituent company by another, the price of the acquirer (Pi) is fixed at the end of the trading day preceding the effective date of the acquisition. This date and the determination of the price are made by the Exchange with the recommendation of the Index Committee. On the effective date of the acquisition, the Exchange recalculates the total number of the ith Stocks (Qi) and adjusting coefficient Z and the stock resumes trading. In the case of the acquisition of an index constituent by a company that is not an index constituent, the reorganized company is excluded from the List of constituent Stocks at a time determined by the Exchange, and upon the recommendation of the Index Committee. • Reorganization of a company in the form of a split-off or spin-off, with a simultaneous merger or acquisition. In the case where the spin-off of an index constituent is acquired by another index constituent, the rules and calculation procedures for spin-offs and acquisitions detailed above apply.

In the case where the spin-off of an index constituent is acquired by a company that is not an index constituent, only the rules and calculation procedures detailed for the spin-offs immediately above apply.

Standard & Poor’s: RTS Indices Methodology 24 In the case where the spin-off of an index constituent is merged with another index constituent, the rules and calculation procedures for spin-offs and mergers detailed above apply.

In the case where the spin-off of an index constituent is merged with a company that is not an index constituent, only the rules and calculation procedures detailed for the spin-offs immediately above apply.

In the case where the split-off of an index constituent is acquired by another index constituent, the rules and calculation procedures for split-offs and acquisitions detailed above apply, excluding the requirement to recalculate the Z coefficient.

In the case where the split-off of an index constituent is acquired by a company that is not an index constituent, only the rules and calculation procedures detailed for the split-offs immediately above apply.

In the case where the split-off of an index constituent is merged with another index constituent, the rules and calculation procedures for splits-offs and mergers detailed above apply.

In the case where the split-off of an index constituent is merged with a company that is not an index constituent, only the rules and calculation procedures detailed for the split-offs immediately above apply.

Procedure of Index calculation Control

In case of a technical breakdown in any Index calculation or a technical failure in the trading system that led to distortions of the data used for any index calculation, Index values are recalculated, but only for the previous trading day. In such cases, the Exchange shall publish the corresponding notification on its Web site.

In case there are circumstances or events that affect the Index as being representative of the Russian stock market, the Exchange is entitled to undertake any actions necessary to remedy this situation.

Information Disclosure

Information on the Indices and the methodology of its calculation is disclosed on the RTS Web site http://www.rts.ru/en/index/rtsi/ and other pages, some of whose links can be found on the Web site.

In addition, the Exchange discloses a daily List of constituent Stocks, the total number of th shares for each i Stock (Qi), and the Specific weight for each Stock. It also provides compliance information provided by the regulatory act of the federal executive body for the securities market that establishes requirements for the composition and structure of the assets of incorporated investment funds and mutual investment funds. It also provides information on all Index values, including the exchange rates used for the ruble- denominated calculation. Information on the current Index values is disclosed within two minutes of the latest Index calculation.

Standard & Poor’s: RTS Indices Methodology 25

Information disclosed on the Exchange’s Web site can additionally be disclosed through other means, including information agencies that distribute the Exchange’ trading data.

Introduction of Changes to the Methodology of Calculation

The Exchange is entitled to introduce changes into the present methodology, including upon the recommendation of the Index Committee, but no more than once a quarter.

Any changes to this methodology are subject to the approval of the Board of Directors of the Exchange and shall be registered with the federal executive body for the securities market.

Notices of such changes are published on the Exchange’s Web site no later than two weeks before such changes come into effect.

Standard & Poor’s: RTS Indices Methodology 26 Appendix 2: Methodology for the calculation of the indicative US$/Ruble exchange rate

General provisions

The indicative US$/Ruble (RUB) exchange rate (the Exchange Rate) is calculated by the OJSC RTS (the Exchange) based on quotes of the US dollar against the Russian ruble, with next day settlement, announced by Russian banks on the interbank market and published by Thomson Reuters with the ticker RUBTNOR.

The list of banks whose quotes are employed in the Exchange Rate calculation is approved by the sole executive body of the Exchange and published on the Exchange’s Web site at www.rts.ru.

The Exchange is entitled to amend the above-mentioned list. Such amendments are subject to approval of the sole executive body of the Exchange and are disclosed on the Web site at www.rts.ru no later than one business day prior to the effective date of the relevant resolution.

The Exchange Rate is used by the Exchange for the calculation of equity indices and/or other indicators if the documents of the Exchange and/or resolutions of its bodies provide for using the Exchange Rate for such purposes.

Calculation of the Exchange Rate

The Exchange Rate is calculated each second from 10:30 to 23:50 MSK on each Exchange business day.

The Exchange Rate is calculated according to the following formula:

res t = MAR t where: res Rt – The Exchange Rate at moment t;

MAt – The Moving Average exchange rate at the moment t determined in accordance with the formulas below.

t = ∑ i 60/RMA −= 60ti where:

Standard & Poor’s: RTS Indices Methodology 27 MAt – The Moving Average exchange rate at moment t;

Ri – the average US$/RUB exchange rate at moment i, after cutting off deviations from the market, as calculated below. The average US$/RUB exchange rate at moment t, after cutting off deviations from the market, is calculated according to the formula:

⎧ ⎡ −1tt ≤− 0005,0|1R/RA| ⎪ ⎢ ⎪ ⎢ ⎪ ⎢ ⎪ if,RA ⎢⎧ >− 0005,0|1R/RA| ⎪ t −1tt ⎢⎪ ⎪ ⎢⎪ ⎪ ⎢⎨ ⎪ ⎢⎪ ⎪ ⎪ ≤≤−∀ >− 0005,0|1R/RA:|ti60t,i Rt = ⎨ ⎣⎢⎩ −1ii ⎪ ⎪ ⎪ ⎪ ⎧ −1tt >− 0005,0|1R/RA| ⎪ ⎪ ⎪ ⎪ if,R ⎪ −1t ⎨ ⎪ ⎪ ⎪ ⎩⎪ ⎩ ≤≤−∃ −1ii ≤− 0005,0|1R/RA:|ti60t,i where:

Rt – the average US$/RUB exchange rate at moment t, after cutting off deviations from the market;

Rt-1 – the average US$/RUB exchange rate at moment t-1, after cutting off deviations from the market;

RAt – the average US$/RUB exchange rate at moment t, before cutting off deviations from the market calculated as defined below.

∑ RM bt RA = =1b , t n where:

RAt – the average US$/RUB exchange rate at the moment t, before cutting off deviations from the market; n – the number of banks whose quotes are used in the exchange rate calculation at the moment of calculation;

RMbt – the average US$/RUB exchange rate of the bank b at moment t, determined in accordance with the formulas and rules set out below.

RM = ( + AskBid 2/) bt bt bt ,

Standard & Poor’s: RTS Indices Methodology 28

where:

RMbt – the average US$/RUB exchange rate of bank b as of moment t;

Bidbt – the US$ bid of bank b as of the moment t;

Askbt – the US$ ask of bank b as of the moment t.

If at the moment t there are no Bidbt and/or Askbt values in Thomson Reuters Information System, the average US$/RUB exchange rate of the bank b at the moment t (RMbt) is not calculated.

If the bank b has not been announcing US$ bid or ask quotes in Thomson Reuters Information System for over 15 minutes, its quotes are not used in the Exchange Rate calculation, until the bank resumes announcing its quotes.

If the quotes of more than two banks cannot be used for any given Exchange Rate calculation, the Exchange Rate is deemed equal to the last calculated Exchange Rate.

If the Exchange is not receiving US$/RUB exchange rate data from Thomson Reuters due to disruptions in the functioning of communication channels, or for other reasons, the Exchange Rate is deemed equal to the last calculated Exchange Rate .

If receipt of the US$/RUB exchange rate from Thomson Reuters has not been resumed by 10:00 MSK on a given business day, no later than at the start of that day’s main (additional) trading session the Exchange is entitled to establish a constant (fixed) Exchange Rate for the main (additional) trading session as equal to any of the following values, unless decided otherwise by the sole executive body of the Exchange: а) the US$/RUB exchange rate established by the Central Bank of Russia; b) a value received from a different source of current US$/RUB exchange rates formed on the interbank FX market; or c) the US$/RUB exchange rate formed on a Russian organized FX markets at the time the Exchange took its decision.

Information Disclosure

Based on the results of the main trading session, the Exchange publishes the last daily Exchange Rate calculated at the close of the main trading session on its Web site at www.rts.ru.

Information on the current Exchange Rate, as well as any constant (fixed) Exchange Rate, is disclosed by the Exchange.

Amendments to the Methodology

The present Methodology can be amended by resolution of the Exchange’s Board of Directors.

Information on amendments to the present Methodology is published on the Exchange’s Web site at www.rts.ru no later than one business day prior to the day such amendments come into effect.

Standard & Poor’s: RTS Indices Methodology 29 S&P Contact Information

Index Management

David M. Blitzer, Ph.D. – Managing Director & Chairman of the Index Committee [email protected] +1.212.438.3907

Product Management

Alka Banerjee – Vice President, Index Research & Analysis [email protected] +1.212.438.3536

Index Operations & Business Development

North America New York – Client Services [email protected] +1.212.438.2046 Toronto Jasmit Bhandal +1.416.507.3203 Europe London Susan Fagg +44.20.7176.8888 Moscow Yuri Morozov +7.495.783.4015 Asia Tokyo Seiichiro Uchi +813.4550.8568 Beijing Andrew Webb +86.10.6569.2919 Sydney Guy Maguire +61.2.9255.9822

Standard & Poor’s: RTS Indices Methodology 30 Disclaimer

Copyright © 2010 by The McGraw-Hill Companies, Inc. Redistribution, reproduction and/or photocopying in whole or in part is prohibited without written permission. All rights reserved. “S&P” and “Standard & Poor’s” are registered trademarks of Standard & Poor’s Financial Services LLC. This document does not constitute an offer of services in jurisdictions where Standard & Poor’s or its affiliates do not have the necessary licenses. Standard & Poor’s receives compensation in connection with licensing its indices to third parties. All information provided by Standard & Poor’s is impersonal and not tailored to the needs of any person, entity or group of persons. Standard & Poor’s and its affiliates do not sponsor, endorse, sell, promote or manage any investment fund or other vehicle that is offered by third parties and that seeks to provide an investment return based on the returns of any Standard & Poor’s index. Standard & Poor’s is not an investment advisor, and Standard & Poor’s and its affiliates make no representation regarding the advisability of investing in any such investment fund or other vehicle. A decision to invest in any such investment fund or other vehicle should not be made in reliance on any of the statements set forth in this presentation. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other vehicle. Inclusion of a security within an index is not a recommendation by Standard & Poor’s to buy, sell, or hold such security, nor is it considered to be investment advice. Standard & Poor’s does not guarantee the accuracy and/or completeness of any Standard & Poor’s index, any data included therein, or any data from which it is based, and Standard & Poor’s shall have no liability for any errors, omissions, or interruptions therein. Standard & Poor’s makes no warranties, express or implied, as to results to be obtained from use of information provided by Standard & Poor’s and used in this service, and Standard & Poor’s expressly disclaims all warranties of suitability with respect thereto. While Standard & Poor’s has obtained information believed to be reliable, Standard & Poor’s shall not be liable for any claims or losses of any nature in connection with information contained in this document, including but not limited to, lost profits or punitive or consequential damages, even if it is advised of the possibility of same. These materials have been prepared solely for informational purposes based upon information generally available to the public from sources believed to be reliable. Standard & Poor’s makes no representation with respect to the accuracy or completeness of these materials, the content of which may change without notice. The methodology involves rebalancings and maintenance of the indices that are made periodically during each year and may not, therefore, reflect real time information. Analytic services and products provided by Standard & Poor’s are the result of separate activities designed to preserve the independence and objectivity of each analytic process. Standard & Poor’s has established policies and procedures to maintain the confidentiality of non-public information received during each analytic process. Standard & Poor's and its affiliates

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Standard & Poor’s: RTS Indices Methodology 32

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