AFK Sistema : Regarding the decision of the Republic of Bashkortostan Arbitration Court in the Rosneft case

23/08/2017

Regarding the decision of the Republic of Bashkortostan Arbitration Court in the Rosneft case

Moscow, Russia - 23 August 2017- Sistema PJSFC ('Sistema' or 'the Corporation') (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, notes today's decision by the Republic of Bashkortostan Arbitration Court to partially satisfy claims brought by Rosneft, PJSOC Bashneft and the Republic of Bashkortostan against the Corporation and JSC Sistema Invest seeking to recover damages allegedly suffered by the claimants as a result of the reorganisation of PJSOC Bashneft. According to the decision announced by the judge at the hearing, the court has ordered Sistema and Sistema-Invest to pay damages of RUB 136,273,554,065.

Sistema PJSFC disagrees with today's court decision, which it considers to be unlawful and unfounded, and will file an appeal with the Eighteenth Arbitration Court of Appeal in Chelyabinsk within the time limit prescribed by the law. The decision of the Republic of Bashkortostan Arbitration Court will not come into effect until such time as the appeal court makes its decision.

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Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in such sectors as telecommunications, retail, paper and packaging, agriculture, high technology, banking, real estate, pharmaceuticals, tourism and healthcare services. The company was founded in 1993. Its revenue in 2016 reached RUB 697.7bn; its total assets equalled RUB 1.1tn as of 31 December 2016. Sistema's global depositary receipts are listed under the 'SSA' ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the 'AFKS' ticker on the Moscow Exchange. Website: www.sistema.ru