AFK Sistema : Sistema files lawsuit seeking damages from Rosneft and Bashneft

08/12/2017

Sistema files lawsuit seeking damages from Rosneft and Bashneft

Moscow, 8 December 2017 - Sistema PJSFC ('Sistema' or 'the Corporation') (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces that it has filed a lawsuit in the Arbitration Court of the City of Moscow against Rosneft and PJSOC Bashneft (the 'Defendants') seeking damages of RUB 330,448,787,336.

During 2017 Rosneft and Bashneft have deliberately and in bad faith, undertook and continue to make a number of actions with the sole aim of unjustly enriching the Defendants and destroying Sistema's shareholder value, driving the Corporation to bankruptcy and causing losses to the Corporation, its shareholders and creditors.

In this connection, Sistema has been forced to take actions to defend the legitimate interests of the Corporation, its employees, partners and shareholders, and has asked the court to compensate the losses caused.

At the same time, Sistema underscores its repeatedly stated readiness to find a swift resolution to the dispute on an honest and objective basis in the interests of all parties to the dispute and the broader Russian economy.

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

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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