#AFK Sistema will borrow up to RUB 105 Bn from #Sberbank to meet it obligations in front of #Rosneft. #MTS shares are pledged under the loan agreement. Sistema will have to agree its future dividends with Sberbank.

This amount should sufficient to pay the entire residual amount of RUB 80 Bn AFK Sistema still owes to Rosneft under the settlement agreement.

Moscow, Russia – 19 February 2018 – Sistema PJSFC (“Sistema” or the “Corporation”) (LSE: SSA, MOEX: AFKS) a publicly traded diversified Russian holding company, announces the signing of a loan agreement with Sberbank for the performance of the Corporation’s obligations under the Settlement Agreement with PJSOC Bashneft, Rosneft and the Republic of Bashkortostan (“the Settlement Agreement”).

Sberbank (or “the Creditor”) will extend a line of credit to Sistema for a five-year period in the amount of up to RUB 105 billion, of which RUB 40 billion will be allocated to discharge obligations under the Settlement Agreement. The remaining amount may be used by Sistema as needed to refinance the Corporation’s debt obligations. The loan will be secured by ordinary shares of MTS, which will be recorded as collateral in proportion to the drawdown of the loan on the basis of the loan-to-value ratio. The loan agreement allows for early repayment.

As per the terms of the loan agreement, without the approval of the Creditor Sistema has the right to carry out investment activity and to pay dividends using part of the funds received from the monetisation of its assets; with the approval of the Creditor, it has the right to carry out investment activity and to pay dividends using funds from other sources.

The loan agreement shall be approved as per Sistema’s corporate procedures. Sistema thanks Sberbank for its comprehensive support and effective partnership.