Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
15.09.2006

PRESS RELEASE Ministry of Finance of the Russian Federation announced that it has launched the second tranche of its offer to exchange Russian Federation Eurobonds due 2010 and 2030 for eligible trade indebtedness of the former USSR

 

Moscow, 15 September 2006 — The Ministry of Finance of the Russian Federation announced that it has launched the second tranche of its offer to exchange Russian Federation Eurobonds due 2010 and 2030 for eligible trade indebtedness of the former USSR (FTO debt). The 2010 bonds and the 2030 bonds to be issued in the FTO exchange will accrue interest from March 31, 2000 and will be fungible in all respects with Russia’s existing 2010 bonds and 2030 bonds. All payments of principal and interest scheduled to be made on the 2010 and 2030 bonds prior to the closing date will be paid to participating creditors at settlement. Following the conclusion of this offer, Russia will have completed the restructuring of substantially all of the former Soviet Union’s commercial trade debt.

The second tranche of the FTO exchange offer is being made on the same terms offered to creditors in the first tranche of the FTO exchange of 2002.

Detailed terms of the exchange offer will be set forth in an Offering Circular, copies of which are being sent to all holders of reconciled FTO debt. Holders of reconciled FTO debt may also obtain copies of the Offering Circular from the password-protected section of Vnesheconombank’s website at http://www.veb.ru/fto.

To assist holders of reconciled FTO debt in evaluating the exchange offer, an FTO Bond/Cash Calculator will be available on Vnesheconombank’s website http://www.veb.ru/fto. The FTO Bond/Cash Calculator will calculate the indicative amount of bonds and cash that will be received in exchange for tendered FTO debt. The actual amount of bonds and cash that will be received by participating holders will be determined by Vnesheconombank in accordance with the terms of the exchange offer.

As of 13 September 2006, U. S. $720 million principal amount of FTO claims have been reconciled and are eligible to participate in the second tranche of the FTO exchange.

The exchange offer will remain open until 5 p. m., London time, on Friday, 6 October 2006. It is expected that the exchange offer will close on Wednesday, 18 October 2006.

Questions regarding the exchange offer should be directed to Citibank, N. A., the Exchange Agent for the offer, at:

Citibank, N. A.
Citigroup Centre
Canary Wharf
London E14 5 LB
England
Tel. No. +44 20 7508 3867
Fax No. +44 20 7508 3866

Questions regarding the reconciliation of FTO debt should be directed to Vnesheconombank, the Sub-Exchange Agent for the offer, at:

Academic Sakharov Avenue, 9
Moscow 107996 GS P-6
Russia
Tel. No. +7 495 204 6327
Fax No. +7 495 975 2120


NOT FOR RELEASE IN THE UNITED STATES. These materials are not an offer for sale of the securities in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended. The Russian Federation has not registered, and does not intend to register, the securities in the United States or to conduct a public offering of securities in the United States.