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Presented by: VTB Bank, Custody

March 2, 2017 Issue No. 2017/07

Company News

Pharmstandard to delist from Moscow Exchange on March 24, 2017 On February 17, 2017 it was announced that pharmaceuticals producer Pharmstandard would delist from the Moscow Exchange on March 24. In October 2016, Augment Investments raised its stake in Pharmstandard to 98.12%. Augment earlier said it planned to buy 100% in Pharmstandard and make the Russian company a non-public one as it will help the company to solve strategic goals in a better way and to not depend on the market volatility. The Moscow Exchange suspended trading of Pharmstandard shares from November 29, 2016. The company delisted from the London Stock Exchange also in November. According to Pharmstandard’s documents, Augment owned 96.19% in the company in 2016, while the company’s 100% affiliate Pharmstandard-Lekarstva had a 3.8% stake.

Deripaska’s En+ Group holds premarketing for IPO On February 17, 2017 a banking source said that Russian billionaire Oleg Deripaska’s En+ Group was holding premarketing for an initial public offering (IPO). The premarketing started last week. He confirmed earlier media information that VTB Capital, Sberbank CIB, Citi and JP Morgan would act as organizers. Deripaska earlier said that En+ Group plans an IPO in London in the near future. He stated then that the British market would become more attractive after Brexit. En+ Group holds 48.13% in aluminum giant UC RUSAL and owns power utility EuroSibEnergo, among other assets.

UAC vice president may chair Sukhoi Civil Aircraft On February 20, 2017 it was announced that Russia’s United Aircraft Corporation (UAC) Vice President Vladislav Masalov might become CEO of Sukhoi Civil Aircraft, a unit of UAC. Masalov will combine posts of Sukhoi Civil Aircraft CEO, chairman of the board of directors of aircraft producer Irkut, and vice president of UAC. Kamil Gainutdinov, who has been CEO of Sukhoi Civil Aircraft since September 2016, will become vice president of the company and of Irkut.

Rosneft may complete Essar acquisition next month On February 20, 2017 it was reported that a consortium led by Russian oil major Rosneft plans to finally complete its USD 12.9 bln acquisition of India’s Essar Oil next month. Acquiring the refiner will give state- owned oil Rosneft access to India, one of the world’s fastest-growing energy markets. The deal was announced to fanfare in October but has still not closed. The sources said the delay was due to the complexity of Essar’s structure and financing, not to any issues relating to the buyers, who will buy 98% of Essar. Rosneft is under Western sanctions due to Moscow's role in the Ukraine crisis. Two sources said that the deal, announced during a visit to India by Russian President Vladimir Putin, was now set to be completed on March 15. Rosneft will acquire a 49% share in Essar and another 49% will be shared between commodities trader Trafigura and Russian private investment group United Capital Partners (UCP). The deal was structured to avoid the risk of Western sanctions, the chief executive of Russian bank VTB, which is involved in financing the deal, told Reuters last year. Essar Oil operates a 400,000 barrel-a-day refinery in Vadinar on India’s west coast and sells fuels through its 2,470 filling stations across the country. Trafigura said that VTB would co-fund Trafigura and UCP’s 49% stake. Rosneft said it might use its own funds,

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external financing or both to pay for its share. One of the sources close to the deal said discussions about the management team at Essar were holding up completion of the deal, but did not elaborate. The second source said that Essar’s Indian creditor banks, which include State Bank of India (SBI), must approve a change of control at the company. The deal was also complicated by Essar’s ongoing debt restructuring program. A senior SBI official said the bank was on course to approve the deal, and did not see U.S. sanctions getting in the way, but did not give a timeframe. VTB earlier agreed to provide Essar with up to USD 3.9 bln for debt reconstruction. Rosneft said it expected to close the deal in the first quarter of 2017. Trafigura gave the same timeframe, and said it was also replying on behalf of UCP.

Lukoil closes deal to sell Ukrainian petrochemical plant On February 21, 2017 it was announced that Russian oil major Lukoil closed a deal to sell 100% in LUKOIL Chemical B.V. which owns petrochemical plant Karpatneftekhim in Ukraine. Lukoil didn’t disclose the sum of the deal. In June 2016, Lukoil CEO Vagit Alekperov said the company would like to sell Karpatneftekhim and estimated the price in about USD 100-350 mln, but there were no buyers. Previously, Lukoil owned an oil refinery in the Ukrainian city of Odessa and a network of fuel filling stations in the country, but the company sold the assets in 2013 and 2014.

Russian Aquaculture plans to attract USD 50 mln in SPO On February 22, 2017 it was stated that Russian Aquaculture plans to attract up to USD 50 mln in a secondary public offering (SPO) sometime in June-November and use the money for its further development. The company plans to invest first of all in construction of new fish farms in the Barents Sea. In 2017, the company plans to increase fish production by around 50% to over 9,000 tonnes.

MTS’ board of directors extends CEO Dubovskov’s powers for 3 years On February 22, 2017 the board of directors of Russian mobile operator MTS prolonged powers of the company’s President Andrei Dubovskov by three years starting from March 5. The board also kept unchanged its management, which comprises Dubovskov along with Vice President for Human Resources Mikhail Arkhipov and Vice President for Sales and Service Kirill Dmitriyev, among others. MTS’ net profit increased 7.5% on the year to RUB 14.5 bln in July-September 2016.

Ivanov nominated for ALROSA president On February 27, 2017 Yury Trutnev, Deputy Prime Minister, declared that Sergei Ivanov, a senior vice president of Sberbank and son of presidential envoy Sergei Ivanov, would be nominated for uncut diamond mining giant ALROSA’s president. He also confirmed that President Andrei Zharkov signed a notice of resignation. Previously, media reported that the government was discussing Zharkov’s replacement as his views on the company’s development did not coincide with government ideas. Finance Minister Anton Siluanov, chairman of the board, said that the meeting would be convened very soon.

Nordgold shareholders approve GDR buy-back program On February 27, 2017 it was announced that an extraordinary shareholder meeting of gold mining company Nordgold, controlled by Russian businessman Alexei Mordashov, approved a program to buy back global depositary receipts (GDRs) under a planned delisting from the London Stock Exchange (LSE). Earlier in February, Nordgold offered to buy back GDRs from minority holders at USD 3.45 per security from February 9 to March 16. The shareholders of the company will also have a chance to sell the securities at this price four more times: after publication of financial reports for January-June 2017, for the entire 2017, for January- June 2018, and for the whole 2018. Nordgold plans to spend about USD 118 mln of its own funds for the project and says it may return to the open market as a large gold producer in the coming years, depending on market conditions. The capital of Nordgold consists of 370.396 mln common shares. GDRs account for 51.336 mln shares, of which majority shareholders own 17.006 mln. This means that Nordgold can buy back up to 34.329 mln shares, or 9.27% of capital.

Republic of Tatarstan hopes for bailout of Tatfondbank On February 28, 2017 Rustam Minnikhanov. head of Russia’s republic of Tatarstan, said that the republic expects that Tatfondbank will undergo bailout procedures. In December 2016, the central bank appointed the Deposit Insurance Agency (DIA) as an interim administration at Tatfondbank for six months and introduced a three-month moratorium on fulfillment of liabilities. He said that the applications by other contenders to bail out the bank were turned down by the central bank.

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Sovcomflot board approves 281 mln extra share offering On February 28, 2017 the board of directors of shipping company Sovcomflot approved offering 280.957 mln additional common shares. The shares will be placed publicly.

Kapital says may struck amicable debt deal with FESCO On March 1, 2017 Vadim Soskov, CEO of Russian management company Kapital, which owns exchange bonds of the second series of troubled Far Eastern Shipping Company (FESCO), stated that the company does not rule out an agreement with FESCO. In 2016, Kapital and Bank Primorye filed cases against FESCO to the Moscow Arbitration Court. The court satisfied a claim by Kapital, which demanded that FESCO pay RUB 62 mln debt in the form of amortization of 20% of a face value of the bonds, which the company failed to pay in May 2016. A court of appeals upheld the decision in February. But FESCO has not yet paid the debt, and on February 28 Kapital filed a bankruptcy suit. Holders of FESCO’s exchange bonds of the first series approved a restructuring deal in December. On December 14, FESCO offered to pay the third coupon to the owners of the first series of ruble-denominated exchange bonds until April 27, 2017.

Gazprom Energoholding plans no IPO in mid-term On March 1, 2017 Denis Fyodorov, CEO of Russian power utility Gazprom Energoholding, stated that the holding sees an initial public offering (IPO) reasonable only if prices of shares companies comprising Gazprom Energoholding jump four- or fivefold. Gazprom Energoholding is a 100% affiliate of gas giant Gazprom and owns controlling stakes in power producers Mosenergo, Territorial Generating Company-1, Wholesale Generating Company-2, and Moscow United Energy Company (MOEK).

Rosneft raises voting stake in Bashneft to 69.3% after buyout On March 1, 2017 it was reported that oil major Rosneft purchased 13.481 mln common shares from about 5,000 minority shareholders of Bashneft for RUB 49.966 bln under a buyout offer and drove its voting stake in the affiliate to 69.3%. Rosneft presently owns 102.432 mln common shares of Bashneft, which corresponds to about 69.3% of voting shares. Rosneft closed a deal to purchase 50.08% in Bashneft, or 60.16% of common shares, from the government for RUB 329.7 bln in October 2016. The company sent a buyout offer on November 15 with the set at 3,700 per security, and the offer volume at 37.52% of common stocks. It was reported that owners of about 9% of oil company Bashneft’s common shares accepted a buyout offer by major shareholder Rosneft.

PM signs order to appoint VTB Bank executive as Rostelecom’s head On March 1, 2017 Russian Prime Minister Dmitry Medvedev signed a directive to appoint Mikhail Oseyevsky, deputy chairman at VTB Bank, as a new president of state-controlled telecom operator Rostelecom. Oseyevsky thanked the prime minister and said that Rostelecom was a core company for the country’s whole telecommunications industry. Rostelecom hugely modified its business structure over the recent years toward digital services. Sergei Kalugin, who has been running Rostelecom since March 2013, was offered a position of a deputy communications minister.

Shares of TMK, preferred shares of Mechel to enter MICEX, RTS lists from March 17, 2017 On March 2, 2017 the Moscow Exchange declared that common shares of oil and gas pipe producer TMK and preferred shares of metals and mining group Mechel would be added to the MICEX and RTS index lists from March 17 and replace common shares of oil company Bashneft and titanium giant VSMPO-Avisma. The constituent lists of the Blue chip Index will remain unchanged. The exchange will also add shares of Promsvyazbank and space corporation Energia and preferred shares of Slavneft-Megionneftegas to the broad market list, and exclude shares of Bashneft, Chelyabinsk Zinc Plant and wholesale energy distributor TNS energo from the list.

Globexbank owners cut capital by RUB 7 bln On March 2, 2017 shareholders of Globexbank decided to slash capital of the bank by RUB 7.45 bln to RUB 15.004 bln through reduction of the face value of common shares by RUB 16.59 to RUB 33.41. The shareholders will not be reimbursed for the reduction and will not be given shares. State-owned Vnesheconombank (VEB), which plans to sell its affiliated Globexbank, Prominvestbank and Sviazbank, expects to receive final price and deal structure offers to sell Globexbank and Sviaz-Bank until March 20.

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Gazprom board approves boosting charter capital of Gazpromviet On March 2, 2017 the board of directors of Gazprom approved raising the charter capital of Russian- Vietnamese company Gazpromviet by a total of RUB 831.5 mln via injections in proportion to the owners’ stakes. Gazprom will inject RUB 424 mln to raise its stake in the company’s charter capital to RUB 1.03 bln. Gazprom holds 51% in Gazpromviet and Vietnam’s Petrovietnam owns 49%.

Dividends/coupons Yandex board may consider paying dividends for 2016 On February 17, 2017 Greg Abovsky, Chief Financial Officer of Russian Internet company Yandex, stated that the company’s board of directors might consider payment of dividends on 2016 results. The company’s cash, cash equivalents, term deposits and short-term investments in debt amounted to RUB 63 bln as of December 31, 2016.

Russian Grids sees 2016 dividends of 25% of RAS profit reasonable On February 21, 2017 Oleg Budargin, CEO of state-controlled power utility Russian Grids, stated that the company was waiting for a government ruling on dividends for 2016 and sees the level of 25% of its net profit calculated under Russian Accounting Standards (RAS) reasonable. In 2016, Prime Minister Dmitry Medvedev signed a one-time ruling that a state company must take the highest figure of its net profit - under Russian Accounting Standards or International Financial Reporting Standards - and allocate no less than 50% of the net profit for 2015 dividends. The Finance Ministry wants to make the ruling permanent. But on February 14, 2017 Finance Minister Anton Siluanov said that the government would discuss dividend payments of each state company on the basis of its financial condition. A source familiar with the Energy Ministry’s position stated that the ministry suggested setting a limit for payments of dividends for 2016 by affiliates of Russian Grids at 25% of their RAS net profit. Russian Grids sees the threshold of 25% of the RAS net profit a reasonable minimum for dividend payments, but the issue is still under discussion, and the company will fulfill any government ruling. Still, the company thinks it is better to pay annual dividends and not quarterly ones.

Sberbank to pay RUB 100 bln, 20% of net profit in 2016 dividends On February 22, 2017 German Gref, CEO of Sberbank, said that the bank would pay more than RUB 100 bln in dividends for 2016, which accounts for about 20% of the net profit. The net profit of Sberbank more than doubled to RUB 516.988 bln in 2016 from RUB 236.3 bln in 2015, as calculated under Russian Accounting Standards (RAS). The IFRS net profit data will be published in March. Sberbank pays 20% of its IFRS net profit in dividends under its dividend policy.

Gazprom Neft may boost dividends for 2016, further years on profit rise On February 22, 2017 Alexei Yankevich, Deputy CEO for Economy and Finance at Russian oil company Gazprom Neft, said that the company plans to increase dividends for 2016 and further years significantly as its net profit is expected to grow. Gazprom Neft paid RUB 6.47 per share, or a total of RUB 30.7 bln, in dividends for 2015. The total payment accounted for 28% of the company’s 2015 net profit, as calculated under International Financial Reporting Standards. Gas giant Gazprom owns 95.7% in Gazprom Neft, while 4.3% is free-float.

CEO says sure of growth of Novatek’s dividends each year On February 22 Leonid Mikhelson, CEO and core owner of Russian independent gas producer Novatek, stated that the company’s dividends would grow year by the year. He also said that Northgas, a joint venture with Russian gas giant Gazprom, might pay its first dividends on results of 2017. Dividends by Articgas, a joint venture with oil company Gazprom Neft, are not discussed and will depend on the possibilities for development and new investment. In October 2016, shareholders of Novatek approved paying RUB 6.9 per share, or a total of RUB 21 bln, in dividends for January-June of the year. Previously, the company paid RUB 13.5 per share, or RUB 40.99 bln, in combined dividends for 2015, which is a 31% increase on the year. Novatek’s major shareholders are Mikhelson with a 24.75% stake, businessman Gennady Timchenko’s Volga Group with 23.49%, France’s Total with 16.29%, and Gazprom with a 9.99% stake.

VimpelCom owner to pay 2016 dividends at USD 0.195 per share in April 2017 On February 27, 2017 the supervisory board of VimpelCom Ltd., the sole owner of Russian mobile operator VimpelCom, approved a new dividend policy stipulating payment of USD 0.195 per share for 2016 in April.

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The aggregate amount of dividends for 2016 of USD 0.23 comprises USD 0.035 per share paid as an interim dividend in December 2016 and USD 0.195 per share as a final dividend. The record date to receive the final dividend is set for March 30 with payments to be done in April. LetterOne of Russian tycoons Mikhail Fridman, German Khan and Alexei Kuzmichyov owns 47.9% of VimpelCom Ltd.’s common and voting shares, while Telenor holds 20.1%.

Nordgold’s board approves payment of USD 19 mln in October-December 2016 dividends On February 27, 2017 the board of directors of gold mining company Nordgold, controlled by Russian businessman Alexei Mordashov, approved paying USD 0.0512 per share or GDR, or a total of about USD 19 mln in dividends for October-December 2016. The record date is set for March 2, and the payment will be done on March 13. The company has already paid USD 0.0424 per share or GDR in interim dividends for January-March 2016, USD 0.0552 per share or GDR in dividends for April-June, and USD 0.0319 per share or GDR in dividends for July-September. The total dividend payout for 2016 will reach USD 0.1807 per share or GDR, or USD 66.9 mln compared with USD 0.156 per share or GDR or a total of USD 58.5 mln in 2015. Mordashov controls 90.73% in Nordgold, while about 9.25% is free-float.

Rosneft sees decision on interim dividends in July-December 2017 On February 27, 2017 Pavel Fyodorov, First Vice President at Russian oil major Rosneft, said that the company would make a decision on the first payment of interim dividends in the second half of 2017. Rosneft’s revised dividend policy encompasses dividend payments twice a year. CEO Igor Sechin said earlier the company would earmark 35% of net profit under International Financial Reporting Standards (IFRS) for dividends.

Gazprom Neft to pay RUB 11 per share in dividend for 2016 On February 28, 2017 Alexei Yankevich, Deputy CEO for Economy and Finance at Gazprom Neft, stated that the company plans to pay the highest dividends in its history of RUB 11 per share for 2016, as compared with RUB 6.47 per share paid for 2015.

Russian Grids says affiliates to pay 25% of RAS profit in 2016 dividens On February 28, 2017 Oleg Budargin, CEO of state-controlled power utility Russian Grids, said that the company planned that all its affiliates - including Federal Grid Company of Unified Energy Systems (FGC UES) - would pay 25% of their net profit calculated under Russian Accounting Standards (RAS) in dividends for 2016. Previously, Russian Grids’ largest affiliate Federal Grid Company of Unified Energy Systems (FGC UES) paid RUB 16.977 bln in dividends for 2015, which accounts for 95% of the company’s RAS net profit for the year. In December 2016, the company said it plans to allocate RUB 13.48 bln for dividends on RUB 57.9 bln net profit for the year. Russian Grids owns 80.1% in FGC UES, and the government owns 85.31% in Russian Grids.

Mosenergo, TGC-1, WGC-2 able to pay 50% profit in dividends On March 1, 2017 Denis Fyodorov, CEO of Gazprom Energoholding, stated that Russian power producers Mosenergo, Territorial Generating Company-1 (TGC-1) and Wholesale Generating Company-2 (WGC-2) were able to pay 50% of their net profit in dividends without any damage to their financial results. Gazprom Energoholding is a 100% affiliate of gas giant Gazprom and it owns controlling stakes in Mosenergo TGC-1, WGC-2, and Moscow United Energy Company (MOEK).

Executive says Inter RAO may pay 25% of IFRS profit in dividends for 2016 On March 1, 2017 Ilnar Mirsiyapov, member of the management board at Russian power holding Inter RAO, said that the company might pay at least 25% of its net profit calculated under International Financial Reporting Standards (IFRS) in dividends for 2016. Inter RAO’s IFRS net profit soared to RUB 61.312 bln in 2016 from RUB 23.822 bln in 2015. Inter RAO’s Management Board Member Yevgeny Miroshnichenko said that the company’s management would recommend payment of 25% of the RUB 61.312 bln net profit in dividends for 2016, not 25% of the about RUB 31 bln adjusted net profit that excludes income from the sale of a stake in power utility Irkutskenergo. According to the company’s Web site, state holding Rosneftegaz owns 27.63% in Inter RAO, Inter RAO Capital has a 19.98% stake, Federal Grid Company of Unified Energy Systems (FGC UES) owns 18.57%, hydropower giant RusHydro has 4.92%, and 28.91% is free-float.

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Gazprom management to propose RUB 186.8 bln in 2016 dividends On March 1, 2017 it was reported that the management of Russian gas giant Gazprom planned to propose paying RUB 7.89 per share, or RUB 186.8 bln, in dividends for 2016. For 2015, Gazprom paid RUB 186.748 bln, or 23.7% of net profit under International Financial Reporting Standards (IFRS), or over 50% of adjusted net profit under Russian Accounting Standards (RAS), in dividends. In 2017-2019, Gazprom plans to keep the size of dividends in rubles at a level not below 2016. Growth of dividends to 50% of net profit for state companies, proposed by the Finance Ministry, can lower Gazprom’s financial stability and increase its debt burden.

VTB can pay RUB 44.4 bln in dividends for 2016 On March 1, 2017 Herbert Moos, CFO of Russia’s second biggest lender VTB, stated that the bank might pay RUB 44.4 bln in dividends for 2016, excluding interim dividends. VTB can raise dividends for the type 1 preferred shares belonging to the Finance Ministry to RUB 11.1 bln from RUB 90.3 mln in 2015. Final dividends for the type 2 preferred shares owned by the Deposit Insurance Agency (DIA) are planned at RUB 18.1 bln. Dividends for common shares can remain flat at RUB 15.2 bln. He also said that the recommendations for dividends can change.

Eurobonds / DRs Foreign investors buy 90% of Severstal $500 mln Eurobonds On February 17, 2017 it was reported that foreign investors bought over 90% of Russian steelmaker Severstal’s newly-placed USD 500 mln Eurobonds maturing in August 2021. The company placed the Eurobonds to a yield of 3.85%, with demand exceeding USD 2.3 bln. The U.S. investors purchased 19% of the issue, the U.K. investors - 21%, investors from continental Europe - 35%, investors from Switzerland - 11%, investors from Asia and other regions - 5%, while Russian investors bought 9%.

Firm affiliated with executives buys Lukoil’s ADRs for over USD 900,000 On February 17, 2017 it was announced that Sabiana Limited, affiliated with Russian oil major Lukoil CEO Vagit Alekperov and Vice President Leonid Fedun, purchased the company’s American Depositary Receipts (ADRs) for USD 901,440. Sabiana Limited bought 10,000 ADRs for USD 559,600 on February 15 and 6,137 ADRs for USD 341,840 on February 16 on the London Stock Exchange. The stakes of Alekperov and Fedun were estimated at 22.96% and 9.78%, respectively, as of the end of September 2016.

Russian Railways to place USD 500 mln Eurobonds at 4.375 On February 22, 2017 a banking source said that Russian Railways would place USD 500 mln of 7-year Eurobonds at a yield of 4.375%. Initially, the company aimed investors at a yield of 4.625%, but later the guidance was cut to 4.25-4.5%. Demand for the bonds exceeded USD 1.75 bln. The company held a road show of the Eurobonds on February 20 and 21 in London. J.P. Morgan and VTB Capital act as organizers. The company is also considering offering ruble-denominated Eurobonds later, a source said earlier. Gazprombank, J.P. Morgan, and VTB Capital could act as organizers.

Russian Railways placing RUB 15 bln Eurobonds at 8.99% On February 27, 2017 a banking source stated that Russian Railways was placing RUB 15 bln 7-year Eurobonds with a yield of 8.99%. The yield guidance for the Eurobonds initially stood at around 9.2% annually and was lowered to 9-9.15% earlier in the day. Demand for the Eurobonds exceeds RUB 33 bln. Gazprombank, J.P. Morgan, and VTB Capital act as organizers. Earlier in February, Russian Railways placed USD 500 mln Eurobonds to a yield of 4.375%.

Gazprom mulls additional share issue for Asian exchange On February 28, 2017 Andrei Kruglov, Deputy CEO of Russian gas giant Gazprom, said that the company was studying an additional share placement on one of the leading Asian stock exchanges. In June 2016, Kruglov said that Gazprom still kept plans to float existing shares on the Hong Kong Exchange, but may do it no earlier than at the beginning of 2017. Previously, Gazprombank’s Vice President Boris Ivanov said that Gazprom planned to offer USD 500 mln worth of bonds in the Chinese yuan equivalent at the Hong Kong Exchange.

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Evraz to buy back USD 953 mln Eurobonds with maturity in 2018, 2020 On March 2, 2017 it was reported that U.K.-based mining giant Evraz, which operates mainly in Russia, plans to buy back two issues of Eurobonds with maturity in 2018 and one issue with maturity in 2020 for a total of USD 952.5 mln. Bids will be accepted through March 10 and the result will be announced on March 13. The issues to be purchased are USD 700 mln paper with maturity on April 24, 2018, placed at 9.5% annually, USD 850 mln issue maturing on April 27, 2018 with a 6.75% yield and USD 1 bln paper maturing on April 22, 2020 with a 6.5% yield. The bonds will be acquired for USD 1,080, USD 1,537.5 and USD 1,075 respectively. Evraz has USD 125.095 mln bonds of the first and USD 527.41 mln of the second issues in circulation. The entire 2020 issue is outstanding. The company will place new bonds to finance the buyback.

Evraz to hold road show for new Eurobonds on March 6, 2017 On March 2, 2017 a banking source stated that U.K.-based mining giant Evraz, which operates mainly in Russia, plans to hold a road show for a new U.S. dollar-denominated Eurobond issue on March 6. The meetings will take place in Moscow, London, the continental Europe and the U.S. Citi, Deutsche Bank, Gazprombank, J.P. Morgan and VTB Capital will act as the organizers of the road show and a possible placement. Depending on market conditions, the company can offer medium-term bonds. Evraz announced a buyback of three Eurobond issues, maturing in 2018 and 2020 earlier on March 2.

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 Sakr 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 julia.dombro [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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