RESO Insurance Equity Investment

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The European Bank for Reconstruction and Development is acquiring a stake of 10% in RESO Garantia (the “Company”), a leading Russian insurance company. The main objectives of the project are to i) complete the restructuring of the Company’s operations and its capital base and ii) for the Bank to support the ongoing development of the Company and the Russian insurance market. The proposed transaction will provide further support to increasing non-life insurance penetration rates (currently non-life premiums are approximately 1.1% of GDP versus approximately an average of 2.1 % in CEE and 3.1% in Western Europe). The EBRD’s investment will also help the Company in its aims of i) leading developments in increasing market transparency and best practice; and ii) preparing for a potential future market offering. The EBRD will nominate its representative to the Board of the Company. RESO Garantia is the third largest insurance group in Russia (measured by gross premiums in 2006). RESO provides a wide range of insurance products to corporate and retail clients, but focuses on retail business. The Company is a leading provider of motor, property, accident and health and liability insurance. An equity investment of the rouble equivalent of at least USD 150 million (EUR 110 million). The final size of the EBRD investment will be subject to further adjustments, depending on the price achieved by RESO Garantia and its shareholders in their possible future public stock market offering. At least USD 150 million (EUR 110 million). The Company will be required to adopt and implement the EBRD’s Environmental Guidelines for the Insurance Sector. This will enable the Company to manage any potential environmental risks that may arise in relation to both the insurance and investment portfolio. The Guidelines will require the Company, inter alia, to comply with the EBRD's Environmental Exclusion and Referral List for FIs and to submit annual environmental reports to the Bank. None. Irina Rybalchenko, Investor Relations Officer RESO Garantia Gasheka street 12, building 1 Moscow 125047 Russia Tel: + 7 (495) 232-40-41 E-mail: investors@reso.ru