EMPLOYMENT CONTRACT WITH MR LEV LEVIEV

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION

IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

AFI DEVELOPMENT PLC

("AFI DEVELOPMENT" OR THE "COMPANY")

AFI DEVELOPMENT ENTERS INTO an employment contract with Mr Lev leviev

London, 26 April 2019 - AFI Development today announces that it has entered into an employment contract with Mr Lev Leviev.

Under the terms of the employment contract, Mr Lev Leviev will be employed as a strategic adviser for the Company, effective from 1 May 2019. The role will involve responsibility for sourcing new investment opportunities, leading strategic negotiations with key potential investment partners and key lenders of the Company, and providing advice and recommendations on strategic development for the Company. Mr Leviev will not be a director of the Company.

The Company will pay Mr Leviev an annual remuneration of US$960,000 and will provide a benefits package similar to that provided to its senior managers.

Flotonic Limited is the controlling shareholder of the Company with an interest in 64.88% of the issued share capital of AFI. Flotonic Limited is controlled by Mr Lev Leviev who was also a director of the Company until August 2018. Therefore, this transaction falls within Listing Rule 11.1.10 R.

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For further information, please contact:

AFI Development, +7 495 796 9988

Ilya Kutnov, Corporate Affairs/Investments Director (Responsible for arranging the release of this announcement)

Citigate Dewe Rogerson, London +44 20 7638 9571

Sandra Novakov

Lucy Eyles

This announcement contains inside information.

About AFI Development

Established in 2001, AFI Development is one of the leading real estate development companies operating in Russia.

AFI Development is listed on the Main Market of the London Stock Exchange and aims to deliver shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction and quality of customer service.

AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets across Russia, with Moscow being its main market. The Company's existing portfolio comprises commercial projects focused on offices, shopping centers, hotels and mixed-use properties, and residential projects. AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favorable return.

AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighborhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing a strong base for future.