SSEECCUURRIIITTIIIEESS MMAARRKKEETT NNEEWWSSLLEETTTTEERR weekly Presented by: VTB Bank, Custody December 17, 2020 Issue No. 2020/49 Market News St. Petersburg bourse says can start trading derivatives in 2021 On December 14, 2020 President of parent association NP RTS Roman Goryunov said that the Saint- Petersburg Exchange (SPB Exchange) planned to launch a derivative market in 2021. He stated that there was natural demand for foreign securities derivatives, but how and in which form it would be done, was a bit early to say, because it would depend on the readiness of the participants. He mentioned that this is going to be a priority for the next year. Legislation Government approves ratification of Luxembourg tax deal On December 14, 2020 it was reported that the Russian government approved ratification of an agreement on double taxation avoidance with Luxembourg. In March, Russian President Vladimir Putin suggested imposing a 15% tax on dividend yields withdrawn to the accounts in foreign jurisdictions, which needs adjustments to the agreements on avoidance of double taxation with other countries. Russia will cancel such agreements unilaterally if consensus is not reached. The Finance Ministry sent notifications to Cyprus first, and then to Luxembourg, Malta, and the Netherlands. Amendments to the accord with Cyprus have already been made, and the government coordinated them with Malta and Luxembourg. But negotiations with the Netherlands are difficult, Finance Minister Anton Siluanov said earlier. The Finance Ministry also launched a procedure to denounce the double taxation accord with the Netherlands. Company News Altus now says to buy only 25% in Detsky Mir On December 11, 2020 it was reported that investment company Altus Capital lowered the number of shares it was ready to buy in children goods retailer Detsky Mir to 25% from 29.9% due to the new procedure of accepting bids and settlements. The target may to return to the previous level in case of obtaining a preliminary consent of the Federal Antimonopoly Service. A new procedure for acceptance and settlements through the Moscow Exchange is being introduced instead of accepting applications and making settlements through the NRK-R.O.S.T., as it was before. ... The validity of the offer is extended from December 18 to December 24, 2020 to give more time for eligible shareholders to participate in the offer and submit bids. Government to raise Promsvyazbank's capital by RUB 31.8 bln On December 11, 2020 it was announced that the Russian government would raise of Promsvyazbank by RUB 31.8 bln through an issuance of common registered uncertificated shares. The shares will be placed a under private subscription in favor of the Russian Federation represented by the Federal State Property Management Agency. GEM Capital offers USD 25 mln for 100% in Russia’s Volga Gas On December 14, 2020 it was stated that international investment company GEM Capital sent a USD 25.2 mln offer to buy 100% in Russian independent oil and gas company Volga Gas. The offer supposes that 1 each owner of Volga Gas shares would get 23.71 British pennies per share, driving the total offer to GBP 19.16 mln, or an equivalent of USD 25.2 mln. Volga Gas is engaged in geological exploration and production of oil, natural gas, and gas condensate in the Saratov and Volgograd region and in the republic of Bashkortostan. The company owns licenses for five oil and gas deposits. GEM Capital decided to buy 100% in Volga Gas in November. Prior to the announcement, the company received irrevocable liabilities on approval of the offer from several largest shareholders of Volga Gas that own 80.07% in the company, including Baring Vostok Capital Partners that owns 64.75%. To close the deal, GEM Capital needs to get approval of the Federal Antimonopoly Service, and reach a 90% approval threshold of shareholders for the sale of their stakes. At the same time, GEM Capital said that the threshold may be reduced to any level above 50% if the company decides so. Rosneft says buys back USD 30,000 of securities in December 7–11, 2020 On December 14, 2020 it was reported that Russian oil major Rosneft paid USD 30,000 to buy back 5,000 shares and global depositary receipts (GDRs) from December 7 through December 11. The company bought 4,000 common shares and 1,000 GDRs. The weighted average price stood at USD 5.85 apiece. Since the launch of USD 2 bln buyback program on March 23, the company bought back 80.963 mln securities for USD 370.6 mln. Bank Trust to close VTB stake purchase December On December 16, 2020 Alexander Sokolov, head of Bank Trust, said that the purchase of a 9% voting stake in VTB by Bank Trust from Otkritie Financial Corporation (FC) Bank would be closed by the end of the year. On November 27, a central bank official told PRIME that Bank Trust will buy a 9% stake in VTB from Otkritie FC Bank on market terms, and that the central bank would provide the financing of no more than RUB 79.8 bln for the deal. Gazprombank buys stake in Russia’s ASNA pharmacy chain On December 16, 2020 it was reported that Gazprombank acquired a minority stake in pharmacy chain ASNA, which unites more than 10,000 pharmacies. The stake or the sum of the deal was not disclosed. No further details of the deal were provided. Gazprombank signed a binding agreement regarding entering the shareholder equity of ASNA, the leading player on the market of pharmaceutical retail in Russia. In the framework of the deal, Gazprombank acquires a minority stake in the company and provides shareholder financing to it. The company will use the money to finance development of the chain’s technological platform and of an integrated system for promotion of goods, as well as to strengthen competences in the online segment and to enter other segments of the retail market. Pharmacy Chain 36.6 owners to buy 45% of additional share issue On December 17, 2020 it was stated that shareholders of Russia’s Pharmacy Chain 36.6 would buy 736.7 mln common shares of the company’s additional share issue using their preemptive right. The company plans to offer a total of 1.622 bln additional common shares. The board of directors earlier set the price of the additional share offering at RUB 13.55 per share. Under the preemptive right, the shares will be sold at a price of RUB 12.2 per share. Dividends/coupons Norilsk Nickel owners approve RUB 623 per share in January–September 2020 dividends On December 11, 2020 shareholders of Russian metals giant Norilsk Nickel approved paying RUB 623.35 per share, or a total of RUB 98.64 bln, in dividends for January–September. The record date is December 24. Vladimir Potanin’s Interros holds 34.6% in Norilsk Nickel, and aluminum giant UC RUSAL has 27.82%. GV Gold says to pay RUB 27.28 per share in dividends for July–September 2020 On December 11, 2020 shareholders of Russian gold producer GV Gold approved a decision to pay RUB 27.28 per share in dividends for July–September. The record date for the dividends is December 22. Previously, the company paid almost RUB 1.5 bln, or about RUB 27.28 per share, in final dividends for 2019, and RUB 54.56 per share in dividends for January–June 2020. The core shareholders of GV Gold are CEO of Lanta-Bank Sergei Dokuchayev, his Deputy Nataliya Opaleva, and CEO of LT-Resurs LLC Valerian Tikhonov with stakes of 20.36% each, and company’s affiliated with Black Rock control 17.99% in the gold producer. TransContainer says owner approves RUB 40 bln in dividends On December 15, 2020 the sole shareholder of Russian railway container operator TransContainer, Delo Group, approved payment of dividends for the previous year and January–September 2020 for a total amount of RUB 39.823 bln. The company will pay RUB 28.9 bln of dividends for the previous years and RUB 2 10.9 bln of dividends for January–September. Delo bought 50% plus two shares in the operator from Russian Railways for RUB 60.3 bln in 2019. After that, it bought a 49.641% stake from minorities of the company including Yenisei Capital of tycoons Alexander Abramov and Roman Abramovich and Russia’s second largest bank VTB for RUB 59.9 bln. Finally, the group acquired 0.358955% of shares from minorities in August 2020 for RUB 8,679.52 per share. PhosAgro shareholders approve record RUB 123 per share in January–September 2020 dividends On December 15, 2020 shareholders of Russian fertilizer producer PhosAgro approved paying a record RUB 123 per share, or a total of RUB 15.929 bln, in dividends for January–September. In 2019, the company paid RUB 48 per share, or a total of RUB 6.216 bln in dividends for January–September, and RUB 18 per share or RUB 2.331 bln in final dividends for the year. In 2020, the company paid RUB 78 per share or RUB 10.101 bln in dividends for January–March and RUB 33 per share or RUB 4.27 bln in dividends for January– June. Former Senator Andrei Guryev and members of his family hold 48.52% in PhosAgro, Vladimir Litvinenko owns 20.98%, and free-float is 30.5%. Eurobonds / DRs Tinkov sells TCS Group’s GDRs for USD 326 mln, cuts stake to 35.1% On December 11, 2020 the Rigi Trust of Oleg Tinkov sold global depositary receipts (GDRs) of TCS Group for USD 326 mln, Tinkov’s stake in the group fell to 35.1%.