AFK Sistema : Sistema announces completion of optimisation of Bashneft's ownership structure

Sistema announces completion of optimisation of Bashneft's ownership structure

Moscow, Russia - May 7, 2014 - Sistema JSFC ("Sistema") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces the completion of the reorganisation of Sistema-Invest CJSC ("Sistema-Invest") and the elimination of the cross ownership structure of Bashneft OJSC ("Bashneft").

As a result of the reorganisation, Sistema's share in Sistema-Invest has risen to 100%. In turn, Sistema-Invest now owns 12.6% of Bashneft's ordinary shares (10.7% of charter capital).   

Sistema's direct share in Bashneft's voting shares totals 71.8% (63.2% of charter capital). 

The Sistema Group's aggregate share in Bashneft's voting shares is now 86.7%. The share of Sistema's effective ownership in Bashneft's capital is now 78.8%. 

Respective changes to the charters of Sistema's subsidiaries involved in the reorganisation shall be registered with the tax authorities. 

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For further information, please visit www.sistema.com or contact: 

Sistema is the largest publicly-traded diversified holding company in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of US$ 35.9 billion for the full year of 2013, and total assets of US$ 43.2billion as at December 31, 2013. Sistema's global depository receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the symbol "AFKS" on the Moscow Exchange. Sistema was ranked number 308 in the 2013 edition of the Fortune Global 500 list. Website: www.sistema.com

The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940. 

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. In addition, there is no assurance that the new contracts entered into by our subsidiaries referenced above will be completed on the terms contained therein or at all. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.