UK Regulatory Announcement


FOR IMMEDIATE RELEASE September 17, 2013


Moscow, Russia – September 17, 2013 – Sistema JSFC (“Sistema”, the “Group” or
the “Company”) (LSE: SSA), the largest publicly-traded diversified holding
company in Russia and the CIS, today announces the acquisition of a 98% stake
(resulting in effective ownership of 100%) in OJSC United Petrochemical
Company (“UPC”) from the Group’s subsidiary JSOC Bashneft (“Bashneft”) for RUB
6.2 billion. The value of the stake is based upon an independent appraisal
carried out by an international consultant.

UPC is a vertically integrated petrochemical group which owns four enterprises
located in the Bashkortostan region: Ufaorgsintez, Tuimazinkoye and
Shkapovskoye Gas Processing Plants and Bisphenol-A plant. In 2012, UPC
generated a combined revenue of RUB 17.9 billion.

Ufaorgsintez is one of the leading petrochemical producers in Russia.
Polypropylene and ethylene account for over 50% of its production line, while
90% of total sales are made to the domestic market. The company benefits from
an established production chain with feedstock sourced from Bashneft’s Ufa
refineries, the Tuimazinskoye and Shkapovskoye Gas Processing Plants, which
produce liquid petroleum gas and nafta from stable natural gasoline (SNG).

UPC’s development plans will be financed partly by its own cashflow, as well
as debt financing and joint venture initiatives with leading international
petrochemical companies.

Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented:

“This acquisition is a natural expansion of our energy investments. UPC is
already one of the leading petrochemical producers in Russia with a reliable
supply of raw materials from Bashneft’s downstream operations and competitive
production costs. Combined with Russia’s increasing consumption per capita of
petrochemical products, UPC provides Sistema with a solid entry into an
attractive and growing sector.

UPC’s development plans currently envisage organic growth focused on existing
and new production lines, as well as commenced discussions with leading
international petrochemical groups on possible joint venture opportunities”.


For further information, please visit or contact:

Investor Relations        Public Relations

Evgeniy Chuikov           Ekaterina Tsukanova
Tel: +7 (495) 692 11 00   Tel.: +7 (495) 228 1536   

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$ 8.5 billion for the second quarter of 2013, and total assets
of US$ 44.4 billion as at June 30, 2013. 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. 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.


JSFC Sistema
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