AFK Sistema : Statement regarding Sistema’s stake in OJSC Bashneft

Statement regarding Sistema's stake in OJSC Bashneft

Moscow, Russia - September 29, 2014 - Sistema JSFC ("Sistema") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, announces that it has received a notice from OJSC REESTR relating to the shares of OJSC Bashneft owned by Sistema and CJSC Sistema-Invest (the "Bashneft Shares"). 

According to the notice, the Moscow Court of Arbitration has imposed a restriction on transactions ("Restriction") relating to the Bashneft Shares. The Restriction is in connection with a civil claim against Sistema and Sistema Invest resulting from an investigation reportedly related to the privatisation of BashTEK Group. The Restriction does not affect Sistema's and Sistema-Invest's voting rights, but prevents transactions in Bashneft Shares and the receipt of dividends, which will  be paid into an escrow account pending resolution of the investigation. The Restriction is effective from  September 25, 2014 and is independent to the one announced on July 15, 2014 in connection with a separate criminal investigation.

Sistema was not party to the privatisation of BashTEK Group and will use all available legal means to defend its rights. Sistema is continuing to cooperate fully with the investigations and will update the market as appropriate.

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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$ 8.8 billion for the second quarter of 2014, and total assets of US$ 45.2 billion as at June 30, 2014. 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.www.sistema.com