AFK Sistema : Sistema and Krasnodar region administration sign a cooperation agreement

27/02/2017

Sistema and Krasnodar region administration sign a cooperation agreement

Moscow, Russia - February 27, 2017. Sistema PJSFC ('Sistema' or 'the Corporation') (LSE: SSA; MOEX: AFKS), a Russian public diversified holding company, and the administration of the Krasnodar region entered into an agreement on social and economic cooperation at the Russian Investment Forum Sochi-2017.

The agreement signed by Sistema's Board Chairman Vladimir Evtushenkov and the Governor of the Krasnodar region Veniamin Kondratyev will be valid for three years and aims to create favourable conditions for the economic and social development of the Krasnodar region. Sistema and the region's administration will focus on developing joint projects in agriculture, retail, information and telecommunication technologies and attracting investments into the region's economy. The agreement sets forth the parties' unwavering commitment to protection of the environment, rational use of natural resources and ensuring environmental security when implementing investment projects.

'The Krasnodar region offers the best conditions for agriculture both in terms of its geographic location, crop yields and logistics, and a favourable investment climate. As part of our strategy for establishing a leading diversified agricultural holding we will continue expanding the area of land in ownership and increasing productivity by introducing advanced skills, best practices and state-of-the-art agricultural technologies. I am confident that our cooperation with the region's government will facilitate further development of the agricultural and other adjacent industries in the south of Russia without any detriment to the environment and will contribute to the well-being of the local communities,' said Sistema's Board Chairman Vladimir Evtushenkov.

'On our part, we are ready to ensure that the investors committed to long-term presence in the region will receive all possible support from the government. Sistema is known as the owner of leading agricultural enterprises in the region with state-of-the-art technologies and responsible approach to the use of our land. This is an example of a business that cares not only about profit but also about the fertility of land and restoration of natural resources. We are interested in ensuring that such enterprises are able to develop their potential, thus making a contribution to the economic and social development of the local communities,' said Veniamin Kondratyev, the Krasnodar region's governor.

Today, Sistema's agricultural business in the Krasnodar region is represented by Steppe Agro Holding, a diversified company comprised of highly productive fruit growing (Sady Kubani Group) and dairy farming (PJSC Rodina) assets. Steppe Agro Holding is among top 5 apple producers in Russia and is a leading dairy farm in the Krasnodar region with the highest output in Russia: more than 10 tonnes of milk per one lactating cow. The company's animal farming business has 8,800 head of cattle, modern farms with animal feeding areas, hay and silage storage facilities and own production of quality feeds.

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