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Presented by: VTB Bank, Custody

June 10, 2021 Issue No. 2021/21

Internal Custody News

Please be advised that June 12 th 2021 is a public holiday in - “Russia’s Day”. Please note that June 11 th is a short working day, and June 14 th is an official day off.

Market News

Cbank sells RUB 129.6 bln of coupon bonds out of RUB 300 bln offer On June 8, 2021 it was disclosed that on that day Russia’s central bank had sold RUB 129.643 bln of coupon bonds out of a limit of RUB 300 bln. Demand totaled RUB 129.661 bln. The cut-off price amounted to 100% of a face value, while the weighted average price stood at 100.0001%. The settlement date was June 9.

Finance Ministry places RUB 81.85 bln OFZ bonds On June 9, 2021 it was stated that Russia’s Finance Ministry had placed RUB 81.85 bln of OFZ government bonds at two auctions on June 9. At the first auction, the ministry placed RUB 60.987 bln of OFZ 26235 government bonds with a fixed coupon maturing in March 2031. The cut-off price amounted to 90.5755% and the weighted average price stood at 90.6418%. The weighted average yield amounted to 7.38% and the cut-off yield to 7.39%. Demand totaled RUB 147.999 bln. At the second auction the ministry placed RUB 20.863 bln of OFZ 52003 government bonds maturing in July 2030. The cut-off price amounted to 98.1% and the weighted average price stood at 98.1659%. The weighted average yield amounted to 2.75% and the cut-off yield to 2.76%. Demand totaled RUB 38.937 bln.

Company News

TotalEnergies buys 10% in LNG transshipment business of On June 3, 2021 it was stated that France’s TotalEnergies had signed a deal to acquire 10% in Arkticheskaya Perevalka, a unit of independent gas producer Novatek for transshipment of liquefied natural gas (LNG). The unit is an operator of two to-be-built LNG reloading facilities located on the Kamchatka Peninsula and in the Murmansk Region. Besides that, the two companies signed a memorandum of understanding in the spheres of decarbonization, production of hydrogen, and utilization of renewable energy sources.

Otkritie plans to sell 15–20% stake at IPO in 2022 On June 3, 2021 CEO of Otkritie Financial Corporation (FC) Bank Mikhail Zadornov said at St. Petersburg International Economic Forum that the bank plans to place an about 15–20% stake during an initial public offering (IPO) in 2022. He added that the bank wants to attract private and institutional investors.

RDIF CEO sees e-cinema ivi as strong candidate for IPO On June 4, 2021 CEO of Russian Direct Investment Fund (RDIF) Kirill Dmitriev told reporters that online cinema ivi is a promising candidate for an initial public offering (IPO), which could trigger high interest among investors. He also added that this year is one of the most successful for the Russian IPOs which had already raised USD 3.7 bln since the beginning of the year. RDIF is among ivi’s investors in line with funds Baring Vostok, RTP Global, Flashpoint, Winter Capital, and Mubadala.

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Sistema raises stake in developer Etalon to 30% On June 7, 2021 it was stated that multi-industry holding , the key shareholder of developer Etalon, had raised its stake in the company by 4.2 percentage points to 29.79%. Sistema acquired 16.16 mln global depositary receipts (GDP) of Etalon from the minority shareholders, including fund Baring Vostok. The financial details of the deal were not disclosed.

TMK management expects no quarterly dividend payments soon On June 7, 2021 Vice President for Strategy of Russian oil and gas pipe producer TMK Vladimir Shmatovich told reporters that the management of the company does not expect TMK to start paying quarterly dividends soon, and does not expect changes to the dividend policy after acquisition of Chelyabinsk Pipe Plant (ChelPipe). TMK Previously paid RUB 9.67 per share, or a total of RUB 9.990 bln, in dividends for 2020. The company is now focused on debt reduction since it spent its own and borrowed money to buy ChelPipe and as the acquired asset also has debts. The shareholders should not expect dividends similar to what the company paid for 2020. TMK plans to maintain a public status, but it doesn’t have the goal of expanding its free-float. The shareholders should decide whether the free-float should be expanded or not, but the company is very unlikely to issue new shares only to raise free-float, Shmatovich said. It is unreasonable for the company to return to the after delisting. Shmatovich also said that TMK expects its capital expenditures to exceed USD 200 mln per year slightly in 2021 and in the several coming years following acquisition of ChelPipe. The company doesn’t need to raise expenditures as it now does not lack production capacities. Its facilities are up-to-date and need no upgrades. In general, the synergy from ChelPipe acquisition will be higher that the initially estimated figure of 10% of TMK’s earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2021, but TMK will still continue work to improve synergy, he added. Dmitry Pumpyansky, chairman of the board of directors, is the main beneficiary owner of the company.

Otkritie FC Bank sets RUB 10 bln bond guidance at 7.3–7.4% On June 8, 2021 it was reported that Russia’s Otkritie Financial Corporation (FC) Bank had set the coupon guidance for at least RUB 10 bln of 5-year exchange bonds at 7.3–7.4%. The coupon guidance corresponds to a yield of 7.43–7.54% annually. The issue carries semiannual coupons and a buyback offer in two years. The technical placement was preliminary scheduled for June 10. Otkritie FC Bank, brokerage company Region, Credit Bank of , Promsvyazbank, Russian Agricultural Bank, and Gazprombank act as the organizers of the placement.

Beluga Group sells shares at RUB 2,800 per share to raise RUB 5.6 bln On June 9, 2021 it was stated that one of Russia’s leading alcohol producers and importers Beluga Group had sold 2 mln shares at RUB 2,800 per share to raise RUB 5.6 bln during a secondary public offering (SPO). The sold shares represent approximately 12.7% of the company’s share capital. The selling shareholder Tottenwell Limited is a wholly owned subsidiary of PJSC "Beluga Group. Beluga Group plans to use the funds to accelerate business growth in accordance with its strategy. Beluga Group fell by 4.63% to RUB 2,887 on the in the first minutes of trade.

Transmashholding guidance for RUB 10 bln bond at 8.05–8.25% On June 8, 2021 it was reported that Russian railway equipment producer Transmashholding had set the guidance for the first coupon of RUB 10 bln 5-year exchange bond at 8.05–8.25% annually. The guidance corresponds to a yield to maturity of 8.21–8.42% annually. The issue carries semiannual coupons. The technical placement was preliminarily scheduled for June 11. VTB Capital, Gazprombank, and Sberbank CIB act as the organizers of the placement.

Qiwi appoints Protopopov as CEO to replace Kim On June 8, 2021 it was stated that Russian payment system operator Qiwi had appointed Andrei Protopopov as chief executive officer, effective on June 2 to replace Boris Kim. Chairman of the board of directors Sergei Solonin expressed confidence that Protopopov has the drive and the vision to position Qiwi for continued success. He also added that Protopopov’s appointment had come after a thorough and careful succession planning process, spearheaded by the board and Boris Kim himself. Protopopov has over 12 years of commercial and product managing experience. Prior to the recent appointment, he headed the IT and product department of the company from June 2015 to August 2019 and product management from September 2013 to June 2015.

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Tatneft wins auction to acquire EcoPET for RUB 6.45 bln On June 8, 2021 it was stated that oil company had won an auction to buy EcoPET, Russia’s largest producer of raw materials for polyethylene terephthalate (PET) bottles, for RUB 6.45 bln. The auction’s starting price was set at RUB 3.75 bln. The signing of binding agreements under the deal can take place in the next few weeks.

Watchdog allows Mikhailovsky KSM to buy Eurocement On June 8, 2021 it was stated that Russia’s Federal Antimonopoly Service had allowed Mikhailovsky Works of Building Materials (Mikhailovsky KSM) to buy cement producer Eurocement if a number of behavioral conditions are met. Eurocement is the largest cement producer in Russia, and its market share in the Central Federal District, where the acquirer's production assets are located, exceeds 35%.

WGC-2 board decides to sell 140 mln shares of Mosenergo On June 8, 2021 it was disclosed that the board of directors of Russia’s Wholesale Generating Company-2 (WGC-2) had decided to sell 140 mln common shares of power utility Mosenergo. WGC-2 will sell off its entire shareholding in Mosenergo.

STLC raises exchange bond offering to RUB 7 bln On June 9, 2021 it was reported that Russia's State Transport Leasing Company (STLC) had raised the volume of 15-year exchange bond offering to RUB 7 bln from RUB 5 bln and set the final coupon guidance at 7.85%. The final coupon guidance corresponds to a yield of 8.08% to a 3-year buyback offer. The initial coupon guidance amounted to no more than 8.22% and was earlier lowered to 7.85–7.9%. The technical placement is scheduled for June 16. Brokerage company Region, Otkritie Financial Corporation Bank, VTB Capital, Gazprombank, , Russian Agricultural Bank and Sovcombank are the placement organizers.

Inventive Retail sets guidance for RUB 3 bln bond at 8.1% On June 9, 2021 it was reported that Inventive Retail Group, a company that manages specialized retail and online stores of different international brands like Apple, Samsung, Nike, and others in Russia, had set the final guidance for the first coupon of RUB 3 bln 3-year exchange bond at 8.10% annually. The initial guidance amounted to 8.00–8.25% annually, which corresponds to a yield to maturity of 8.24–8.51% annually, and the guidance was reduced to 8.00–8.15% during the bookbuilding. The issue carries quarterly coupons, and preliminary placement will happen no later than on June 17. LLC reStore is the issuer of bonds. Alfa-Bank, Gazprombank, Sberbank CIB, and Sovcombank act as the organizers of the placement.

Moscow Exchange allows trade in Nordgold shares On June 9, 2021 it was stated that the Moscow Exchange had allowed trade in common shares of gold mining company Nordgold, controlled by Russian businessman Alexei Mordashov. The shares have been included in the level one quotation list under the NORD ticker. The company also said earlier that it planned to get listed on the London Stock Exchange.

Rosneft sells 5% in Vostok Oil to Vitol and Mercantile & Maritime On June 10, 2021 it was stated that Russian oil major had signed the main conditions of a sale of 5% in its Vostok Oil project to a consortium of Vitol S.A. and Mercantile & Maritime Energy Pte. Ltd. The agreement confirms the consortium’s intent to acquire the stake, and fixes the main conditions of the deal, which should be closed following acquisition of the necessary regulatory and corporate approvals, Under the project, Rosneft will create a new oil and gas province on the Taimyr Peninsula with a confirmed resource base of liquid hydrocarbons of 6 bln tonnes. The project also encompasses construction of a port in the Sever Bay that will export the project’s oil through the Northern Sea Route.

Gazprom to offer RUB 30 bln of perpetual bonds on June 18 On June 10, 2021 it was reported that Russian gas giant plans to collect bids for at least RUB 30 bln of perpetual bonds on June 18. The first coupon guidance amounts to 160–175 basis points to 5-year OFZ government bonds. The bonds will be placed among qualified investors, companies. The issue carries semiannual coupons. The first call option is scheduled for 4.5 years, further options will be held each five years at 100% of a face value. Technical placement is scheduled for June 25. A 100% affiliate Gazprom Capital will act as the issuer, Gazprombank, Sberbank CIB, VTB Capital, Credit Bank of Moscow, Sovcombank and brokerage company Region as the organizers.

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Aeroflot cuts guidance for RUB 15 bln bond to 8.6–8.8% On June 10, 2021 it was reported that Russian national flagship carrier had cut the first coupon’s guidance for at least RUB 15 bln 5-year exchange bonds to 8.60–8.80% annually from 8.90–9.15% annually. The new guidance corresponds to a yield to maturity of 8.90–9.15% annually. Earlier in the day, the banking source said that demand for the bonds exceeded the offer by around 150% at the start of bookbuilding. The issue carries quarterly coupons. Alfa-Bank, VTB Capital, and Sovcombank act as the organizers of the placement.

Dividends/coupons Kamaz owners approve paying RUB 382 mln in 2020 dividends On June 7, 2021 it was stated that the shareholders of Russian truck maker Kamaz had approved paying 54 kopecks per share, or a total of RUB 381.9 mln, in dividends for 2020. The record date is set at June 16. Kamaz did not pay dividends for 2019 and 2018. State-run industrial corporation Rostec holds 49.9% in Kamaz, Daimler Truck has 15%.

Mostotrest board recommends paying no dividends for 2020 On June 7, 2021 it was stated that the board of directors of Russian construction company Mostotrest had recommended paying no dividends for 2020 due to a net loss. The company did not pay dividends for 2019 as well.

MOEK owners approve no dividends for 2020 On June 8, 2021 it was stated that the shareholders of United Moscow Energy Company (MOEK) had approved paying no dividends for 2020. The owners approved allocation of RUB 4.72 bln out of a RUB 12.274 bln net profit for 2020 to investment, RUB 6.533 bln to the discretion of the company, and left a RUB 1.021 bln profit undistributed. MOEK has not paid any dividends since 2013, when it became part of Gazprom Energoholding.

Russian Agricultural Bank may pay RUB 1.16 bln in 2020 dividends On June 9, 2021 it was stated that the supervisory board of state-owned Russian Agricultural Bank had recommended paying a total of RUB 1.16 bln in dividends for 2020. The board has recommended paying RUB 2,468 per common share, RUB 2,468 per preferred share, and RUB 24,680 per preferred share of type A.

CPC shareholders approve paying RUB 48.8 bln in dividends for 2020 On June 10, 2021 it was disclosed that the shareholders of Caspian Pipeline Consortium (CPC) had approved paying RUB 48.8 bln in dividends for 2020. Around RUB 11.7 bln of the sum will be paid to Russia. CPC pumps oil from the west of Kazakhstan to a terminal at the Black Sea . The consortium’s largest shareholders are Russia with 31%, Kazakhstan with 20.75% and Chevron Caspian Pipeline Consortium Company with 15%.

Please be advised that the information presented in this newsletter is based on the following sources: National Settlement Depository (NSD); Clearstream Banking; Euroclear Bank; PRIME-TASS information agency; “Kommersant”, "Rossiyskaya Gazeta”, “Izvestiya, "Vedomosti”, “The Moscow Times“ newspapers, and others.

For more information kindly contact: Anna Enfiandzhiants Evgenia Makarova Julia Dombrovskaya T +7 (495) 783 13 91 T +7 (495) 783 13 64 T +7 (495) 783 13 15 F +7 (495) 783 13 89 F +7 (495) 783 13 89 F +7 (495) 783 13 20 E [email protected] E [email protected] E [email protected] This document has been prepared exclusively for internal use of VTB Bank (PJSC) customers. The information should not be further distributed or duplicated in whole or in part by any means without the prior written consent of VTB Bank (PJSC). The information contained herein has been prepared on the basis of information which is either publicly available or obtained from a source which VTB Bank (PJSC) believes to be reliable at the time of publication. Information provided herein may be a summary or translation. The content of the material contained herein is subject to change without notice, and such changes could affect its validity. VTB Bank (PJSC) is not obligated to update the material in light of future events. Furthermore, VTB Bank (PJSC) does not warrant, expressly or implicitly, its veracity, accuracy or completeness. VTB Bank (PJSC) and its affiliates accept no liability whatsoever for any use of this communication or any action taken based on or arising from the material contained herein. Additional information may be available upon request. The material in this communication is for information purposes only. Therefore, this communication should not be interpreted as investment, tax or legal advice by VTB Bank (PJSC) or any of its officers, directors, employees or agents and customers should consult with appropriate professional advisers for these specific matters. Nothing expressed or implied herein is intended to create any obligation of VTB Bank (PJSC) and/or impose any liability on VTB Bank (PJSC) and/or create legal relations between VTB Bank (PJSC) and VTB Bank (PJSC) customers.

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