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Presented by: VTB Bank, Custody

May 17, 2018 Issue No. 2018/17

Company News

Liberty Insurance owners decide to raise capital by 25% On May 10, 2018 shareholders of Liberty Insurance, the Russian business of Liberty Mutual, decided to raise the charter capital by almost 25% to RUB 600.04 mln. The capital increase is to take place through growth of the face value of the shares through the use of additional capital of the company.

Sberbank removes Kudrin from list of candidates for new board On May 14, 2018 the supervisory board of Russian national top lender Sberbank replaced former finance minister Alexei Kudrin with the bank’s Deputy CEO Bella Zlatkis on the list of candidates for the bank’s new board to be elected at a shareholder meeting in June. Earlier on May 14, Kudrin, the current member of Sberbank’s supervisory board, agreed for nomination for the post of head of the Audit Chamber.

Interros buys 1.5% of from market since March 2018 On May 15, 2018 it was reported that investment company Interros of tycoon Vladimir Potanin bought around 1.5% of metals giant Norilsk Nickel from the open market since the middle of March. On May 14, the High Court of London started four-day hearings of a dispute between Russian aluminum giant UC of businessman Oleg Deripaska and Interros over a sale of shares in Norilsk Nickel. A long-standing shareholder conflict, which was resolved in 2012 with the intermediation of Russian businessman Roman Abramovich by signing an agreement with a five-year share lockup period, resumed in mid-February. The lockup period expired in December, when Interros decided to buy Abramovich’s 4% in Norilsk Nickel. RUSAL is trying to suspend the deal in the High Court of London. Managing director of Abramovich’s investment company Millhouse Capital David Davidovich said that businessman and lawmaker Suleiman Kerimov offered to buy Abramovich’s stake in Norilsk Nickel. He also said that Deripaska repeatedly asked to prolong the lockup period. He said that the decision to sell the shares was difficult, but it was made on the basis of a number of factors including a good price for the shares and rising demand for nickel. In March, RUSAL and Interros preliminarily agreed at court that each of them buys about 2% in the nickel company from Crispian Investments of Millhouse, whose stake amounted to 6.37%. Interros has already closed its deal to acquire a 2.1% stake.

En+Group’s Andrei Yashchenko appointed as CEO of Delo On May 16, 2018 it was announced that Andrei Yashchenko, who has worked as CFO of ’s power company En+ Group for five years, was appointed as CEO of managing company Delo of businessman Sergei Shishkaryov’s . Mikhail Khardikov was appointed as the new En+’s CFO.

Gazprom Energoholding not interested in buying Samruk-Energo On May 16, 2018 Denis Fyodorov, CEO of Russian power company Energoholding, stated that the company was not interested in acquiring a stake in Kazakh energy producer Samruk-Energo which planned to offer 100% of its shares for sale at the upcoming St. Petersburg International Economic Forum. A top manager of Russian power holding Inter RAO Ilnar Mirsiyalov also said that the holding was not interested in the purchase. Kazakhstan’s Samruk-Kazyna plans to privatize about 200 strategic companies and will offer some of them to Russian investors at the St. Petersburg International Economic Forum, including Samruk-Energo.

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Rostelecom board holders to re-elect members at AGM on June 18, 2018 On May 17, 2018 the board of directors of Russian state-controlled telecom operator suggested shareholders re-elect its current members at an annual general meeting of shareholders on June 18. The list of the candidates approved by the board contains 11 people for 11 seats.

Inter RAO can buy 18.57% stake back from FGC UES On May 17, 2018 it was reported that Federal Grid Company of Unified Energy Systems (FGC UES) initiated negotiations with Inter RAO to sell its 18.57% stake in the power producer, currently valued at RUB 76.6 bln, to the company. One of the sources said that FGC UES decided to quit the asset on Inter RAO’s shares price growth. Mass media reported that RusHydro can also sell its 4.92% interest in Inter RAO to the company for RUB 17.172 bln, an 8.8% discount to the market price as of May 16. Still, the terms of the deal are seen as more beneficial for RusHydro than a market sale. One of the sources said that the discount for the FGC UES’ stake can be 3% higher than for the stake of RusHydro. The market price of the stake amounts to.

Dividends/coupons board recommends RUB 0.111 per share in 2017 dividends On May 11, 2018 the board of directors of Russian power producer Unipro recommended paying RUB 0.111 per share in dividends for 2017. The shareholders will consider the recommendation at an annual general meeting on June 14. The register for the meeting will be closed on May 20. The company already paid RUB 0.111 per share in dividends for January-September. In 2017, the company’s net profit tripled to RUB 30.1 bln, as calculated under Russian Accounting Standards (RAS). Uniper Russia Holding GmbH, a 100%- subsidiary of Germany’s Uniper, holds 83.7% in Unipro. The company operates the Berezovskaya GRES, Surgutskaya GRES-2, Yaivinskaya GRES, Shaturskaya GRES, and Smolenskaya GRES power plants with a combined capacity of 11.2 gigawatts.

RussNeft executives offer to consider paying USD 40 mln in 2017 dividends On May 11, 2018 it was reported that executives of Russian oil company RussNeft suggested the board of directors recommend paying USD 40 mln in dividends for 2017 on preferred shares. RussNeft said in March that it can pay RUB 2.304 bln in dividends on preferred shares for 2017, or about 21% of the net profit under Russian Accounting Standards (RAS).

Credit Bank of ’s board recommends against 2017 dividends On May 11, 2018 the supervisory board of recommended against paying dividends for 2017. The board offered to keep RUB 10.699 bln net profit for 2017 at the disposal of the bank. The annual general meeting of the shareholders is scheduled for June 14.

Yamal LNG board recommends against dividends for 2017 On May 14, 2018 the board of directors of Russian liquefied natural gas (LNG) producer Yamal LNG recommended against payment of dividends for 2017. The shareholders will consider the recommendation at an annual general meeting scheduled for June 13. The shareholder register for the meeting will be closed on May 21. Deputy CEO of shareholder Mark Gyetvay said in December 2017 that Yamal LNG would start to pay dividends in 2021, after repaying the loans on the project.

MGTS board wants to pay RUB 22 bln in dividends, RUB 231 per share On May 14, 2018 the board of directors of Moscow City Telephone Company (MGTS), a fixed line unit of mobile operator MTS, recommended shareholders to approve payment of almost RUB 22 bln in 2017 dividends, or RUB 231 per common and preferred share. Payments on common shares will total RUB 18.413 bln and on preferred shares RUB 3.584 bln. The register of shareholders for a June 22 annual general meeting will be closed on May 29. The register for dividends will be closed on July 12. Dividends to nominal holders will be paid out by July 26 and to others by August 16. MGTS paid RUB 22 bln in dividends for 2016, or RUB 233 per share.

Raiffeisenbank shareholders decide against dividends for 2017 On May 14, 2018 shareholders of Raiffeisenbank, a Russian unit of Raiffeisen Bank International, voted against paying dividends for 2017. The 2017 net profit of RUB 23.957 bln will be kept undistributed. In 2016, the bank paid RUB 10.5 bln in dividends.

GV Gold board recommends paying RUB 2.2 bln in 2017 dividends On May 15, 2018 the board of directors of Russian gold producer GV Gold recommended that the shareholders approve payment of RUB 2.238 bln, or RUB 40.6973 per common share, in dividends for 2017.

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The amount includes RUB 12.731 per share of interim dividends for January-June 2017. The shareholders will consider the recommendation at an annual general meeting scheduled for June 25. Board members Sergei Dokuchayev, Valerian Tikhonov, and Natalya Opaleva each hold 20.36% in the company.

TransContainer to pay RUB 293 per share in dividends for 2017 On May 15, 2018 shareholders of Russian container shipping company TransContainer approved paying RUB 293.04 per share in dividends for 2017. The dividends will account for 75% of the company’s net profit which amounted to RUB 5.429 bln under Russian Accounting Standards (RAS). United Transport and Logistics Company (UTLC) of Russia, , and Kazakhstan owns 50% plus two shares in TransContainer, Far Eastern Shipping Company (FESCO), a unit of multi-industry holding Summa Group, has 25.07%, and Enisey Capital, owned by businessmen Roman Abramovich and Alexei Abramov, holds 24.5051%.

Aeroflot board recommends 50% IFRS profit in dividends for 2017 On May 15, 2018 Vitaly Savelyev, CEO of Russia’s national flag carrier , stated that the company’s board of directors suggested paying 50% of the International Financial Reporting Standards (IFRS) net profit for 2017 in dividends for the period. In 2017, Aeroflot’s net profit fell 40.6% on the year to RUB 23.06 bln, as calculated under IFRS. The company’s dividend policy envisages paying 25% of the IFRS net profit in dividends. However, Aeroflot paid 50% of the profit for 2016 under a government order.

Novoship board recommends RUB 2.2 per share in final 2017 dividends On May 15, 2018 the board of directors of Russian shipping company Novoship, part of the Sovcomflot group of companies, recommended paying RUB 2.2 per share in final dividends for 2017. The company already paid RUB 5.8 per share, or a total of RUB 1.8 bln, in dividends for January-September 2017. Novoship paid RUB 19.8 per share in total dividends for 2016. Sovcomflot holds 89.3% in Novoship.

Rosseti can pay 2018 interim dividends no less than for 2016 On May 15, 2018 Vyacheslav Kravchenko, Deputy Energy Minister, stated that state-controlled power grid holding Rosseti could pay interim dividends for 2018 that would be no lower than for 2016. In 2017, Rosseti posted a RAS net loss of RUB 13.2 bln against a net profit in 2016.

Gazprom Energoholding plans units dividends at 26% of RAS profit 2018 On May 16, 2018 Denis Fyodorov, CEO of power company Gazprom Energoholding, said that the company plans that its subsidiaries may pay at least 26% of the Russian Accounting Standards (RAS) net profit in dividends for 2018. He also sees no risk of lower dividends because of the program to upgrade thermal power plants. The concept of Russia’s thermal power system upgrade was approved by President Vladimir Putin in November 2017. It is aimed at prolonging the investment cycle of power facilities modernization after the completion of the 2015-2017 capacity supply agreement program.

Gazprom board recommends paying RUB 190 bln in 2017 dividends On May 16, 2018 the board of directors of Russian gas giant Gazprom recommended paying RUB 8.04 per share, or a total of RUB 190.335 bln, in dividends for 2017. The dividend payment will account for 26.6% of the company’s net profit calculated under International Financial Reporting Standards (IFRS). Gazprom’s dividends for 2016 amounted to RUB 190.327 bln, or 20% of the IFRS net profit for the year.

Cherkizovo board approves paying 50% of IFRS net profit in dividends On May 17, 2018 the board of directors of Russian meat producer Cherkizovo approved a new dividend policy envisaging payment of at least 50% of the net profit under International Financial Reporting Standards (IFRS). The company paid RUB 75.17 per share, or RUB 3.3 bln, in 2017 dividends. The net profit under IFRS amounted to RUB 5.8 bln in the period. In September 2017, the shareholders approved distribution of undistributed profit for 2014, 2015, 2016 and January-June 2017 and payment of RUB 59.82 per share, or a total of RUB 2.63 bln, in dividends. Cherkizovo paid RUB 13.65 per share, or a total of RUB 600 mln, in dividends for 2016. Cherkizovo Group is controlled by the family of its founder Igor Babayev, an 8% stake is owned by Spain’s Grupo Fuertes.

MegaFon board recommends no dividends for 2017 On May 17, 2018 the board of directors of MegaFon, one of Russia’s major mobile operators, recommended abstaining from paying dividends for 2017. MegaFon’s adjusted net profit of the telecom segment decreased 29% in 2017 to RUB 20.519 bln, as calculated under International Financial Reporting Standards. MegaFon’s shareholders will meet on June 29, and the register for the AGM will be closed on June 4. For 2016, MegaFon paid RUB 19.995 bln in dividends, or RUB 32.25 per common share.

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AvtoVAZ shareholders vote against dividends for 2017 On May 17, 2018 shareholders of Russian car producer AvtoVAZ voted against dividends for 2017 because of RUB 12.38 bln net loss attained by the company in 2017 under Russian Accounting Standards (RAS). Alliance Rostec, a joint venture between Renault-Nissan and state industrial corporation Rostec, owns 83.5% in AvtoVAZ. Renault’s stake in the joint venture is 61.1% and Rostec’s one 38.9%

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.

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