Yug Rusi III

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The EBRD is considering the provision of a long-term secured, syndicated corporate loan to Yug Rusi Group (the “Company”) to finance a non-hostile acquisition of another industry player in the region as well as the implementation of an energy efficiency programme and selected investments aimed at improving the cost efficiency of the Company’s distribution system and provide a sustainable supply of locally produced edible oil and meal to Siberia, Far East and Russia’s neighbouring countries. Transition impact potential will derive mainly from backward linkages to local farmers in Siberia and Far East (among others), via sustainable off-take of their products, including by providing various services to the client’s third party suppliers of agricultural raw materials, as well as from reinforcing corporate governance and quality standards throughout the Company and supporting the Company in its regional market expansion. Yug Rusi is also expected to facilitate the spreading of standards to other industry participants in Siberia in the use of efficient production, procurement, collection and storage methods as well as through energy efficiency improvements. Yug Rusi LLC (the “Company” or “Yug Rusi”), the holding company of the leading Russian edible oil market player and agricultural commodities trader. Up to USD 150 million secured corporate loan to Yug Rusi and selected subsidiaries of the Company, of which up to 60% is for the account of EBRD and the remainder to be syndicated to commercial banks under EBRD A/B loan structure. USD 263 million. Categorised B (2008). The environmental and social due diligence is currently ongoing and includes a site visit, interview with the environmental manager of the Company, review of annual environmental report submitted by the Company, and review of a number of regulatory documents (various licenses and environmental permits, records of provided health and safety training, inspection reports by regulatory authorities, etc. The due diligence to date identified that current activities of the Company are not associated with any significant environmental or social issues and only minor health and safety improvements are required. No significant environmental, social, health and safety issues are expected to occur with regard to the proposed investments. Every plant within the proposed investment programme has a chief engineer responsible for health and safety issues along with representatives of employees responsible for observance of H&S procedures at each production line and facility. There may be some environmental, social, community and occupational health and safety issues associated with new investments, which could be rectified by strict observance of mitigation measures and adherence to the EBRD’s Performance Requirements. Modernisation of operational facilities may be associated with temporary impacts such as generation and management of waste, increased noise and dust levels, construction-related traffic, additional landtake and issues related to the observance of health and safety standards by contractors. Depending on the precise nature of the modernisation and expansion activities, further due diligence will be commissioned and covenanted as part of the ESAP along with any mitigation measures for potential impacts. Energy Efficiency Audit within the framework of the Bank’s existing Regional Energy Efficiency Programme for Corporate Sector funded by Germany and the EBRD Shareholder Special Fund (SSF). Nelly Subbotina, CEO of LLC Management Company Yug Rusi: Tel.: +7 (8632) 950097 E-mail: n169@postof.hush.com