CB Otkrytie

completed

The project will consist of a Tier I and/or Tier II equity investment to Commercial Bank Otkrytie (the “Bank”) to support its commercial banking strategy in the total amount of up to $100 million. The Bank’s strategy assumes merging with other commercial banking subsidiaries fully or partly owned by Financial Corporation Otkrytie (“FC”), including Petrovsky Bank and Investment Bank Otkrytie.CB Otkrytie until 2009 worked under the name of Russian Bank for Development. It was established in 1992 and serviced primarily SMEs, mid-sized corporate and retails clients. The Bank was taken over by FC in November 2008 after the financial crisis hit the Russian banking sector. FC also owns 25% of Petrovsky Bank (which it has worked to restructure) and is currently in discussion with NOMOS Bank which owns another 25% of Petrovsky Bank to purchase its stake in Petrovsky. The remaining 50% of Petrovsky Bank is owned by Deposit Insurance Agency (“DIA”) which is prepared to sell its stake to FC after the merger. Additionally, FC owns 100% of Investment Bank Otkrytie. The FC intends to merge the three banks before the end of 2010.