UK Regulatory Announcement




Moscow, Russia – November 7, 2012 - Sistema JSFC ("Sistema") (LSE: SSA), the
largest publicly-traded diversified holding company in Russia and the CIS,
today announces the completion of the reorganisation of its subsidiary OJSC
Bashkirenergo (“Bashkirenergo”).

In accordance with the previously announced agreement with OJSC INTER RAO UES
(“INTER RAO UES”) in May 2012, Bashkirenergo has been split into JSC
Bashkirian Power Grid Company, which combines transmission and distribution
grids, and OJSC Bashenergoactiv, which integrates power generation assets.

Upon completion of the reorganisation, Sistema-Invest obtained a 92.48%^1
voting stake in Bashkirian Power Grid Company and received RUB 11.2 billion in
cash and promissory notes from INTER RAO, payable in installments by September
29, 2013. Sistema no longer has any interest in the power generation assets.

Bashkirian Power Grid Company is a large regional company providing
electricity transmission services between the central part of Russia and the
Urals and power transmission and distribution services to end-consumers in the
Republic of Bashkortostan. The company’s assets include power transmission and
distribution lines of 0.4 - 500 kV covering a total length 88,361 km, three
substations of 500 kV, eleven substations of 220 kV, 245 substations of 110
kV, 330 substations of 35 kV and 22,294 transformers of 0.4/6/10 kV. The total
installed transformer capacity of substations is 16,648.7 MWA. Bashkirenergo’s
transmission and distribution grid segment generated revenues of US$ 176
million in the first six months of 2012.


For further information, please visit or contact:

Investor Relations        Public Relations

Evgeniy Chuikov           VsevolodSementsov
Tel.: +7 (495) 692 1100   Tel.:+7 (495) 730 1705   

Sistema is the largest publicly-traded diversified holding company 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$ 8.1 billion for the second quarter of 2012, and total assets
of US$ 43.6 billion as at June 30, 2012. 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 315 in the 2011 edition of the Fortune Global 500
list. Website:

The Company is not an investment company, and is not and will not be
registered as such, under the U.S. Investment Company Act of 1940.

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.

^1 Sistema and Bashneft have 50.6% and 49.4% ownership respectively in


JSFC Sistema
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