SSA.L Regulatory News (SSA)

16 Mar 2012 17:00

FOR IMMEDIATE RELEASE March 16, 2012

AD HOC NOTICE

Moscow, Russia - March 16, 2012 - Sistema JSFC ("Sistema") (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that it has become aware of a request for an enquiry by a member of the State Duma of the Russian Federation based on allegations of violations by Joint Stock Oil Company Bashneft ("Bashneft"), a subsidiary of Sistema, relating to its receipt and further use of a licence for the development of the Trebs and Titov oil fields.

Sistema wishes to clarify that Bashneft received the referred licence by order of the Government of the Russian Federation, following a recommendation by the tender commission. Bashneft submitted the best bid during the licence tender, met all the tender requirements, and paid a total of RUB 18.5 billion for the right to explore and produce crude oil at the Trebs and Titov oil fields.

The licence was later transferred to Bashneft-Polus LLC, a wholly-owned subsidiary of Bashneft. The subsequent sale of a 25.1% stake in Bashneft-Polus LLC to OJSC Lukoil was fully approved by state authorities, and conducted in accordance with the Russian legislation. Neither Bashneft, nor Bashneft-Polus LLC, have at any time violated the terms and conditions set out in the licence.

Moreover, Sistema notes today's comments by Anatoliy Ledovskikh, Head of Rosnedra, reported by Interfax, that "the licence tender for the Trebs and Titov fields in Nenets Autonomous Okrug, was conducted fairly, in accordance with the legislation and approved by the Russian Government."

Sistema fully supports Bashneft in its efforts to protect its interests by all possible legal means.

Bashneft's statement is available at:http://www.bashneft.com/press-centre/news/detail.php?id=4040

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

Sistema is the largest diversified public financial corporation 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$ 9.0 billion for the third quarter of 2011, and total assets of US$ 42.7 billion as at September 30, 2011. 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 MICEX-RTS Stock Exchange, and under the symbol "SIST" on the Moscow Stock Exchange (MSE). Sistema was ranked number 342 in the 2010 edition of the Fortune Global 500 list. Website: www.sistema.com

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. 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.

This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the shares or securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies.

Copyright Business Wire 2012