RDIF, RCIF, and Middle Eastern investors will invest in the merger of JSC PE Obolenskoe and JSC Binnopharm to create one of the largest pharmaceutical companies in Russia. The merger aims to increase production capabilities, support research and development, and double sales over four years. It will facilitate the development of an R&D center to attract international biotech and pharmaceutical companies.

1. RDIF, RCIF and leading Middle Eastern investors to support the creation of
leading Russian pharmaceutical manufacturer
Beijing, April 26, 2019 − A consortium of investors including the Russian Direct
Investment Fund (RDIF, Russia’s sovereign wealth fund), the Russia-China
Investment Fund (RCIF, established by RDIF and China Investment Corporation),
and the leading Middle Eastern funds, have announced investments in a project to
develop JSC PE Obolenskoe into a leading Russian pharmaceutical holding.
In December 2018, Sistema, VTB Bank and Obolenskoe management acquired
shares in Obolenskoe from Alvansa Ltd., where Gazprombank and UFG Private
Equity are major shareholders. The total investment amounted to RUB 15.5bn.
The Consortium obtained the right to join the deal after thorough analysis of the
project was completed. The parties plan to expand the pharmaceutical holding by
merging Obolenskoe with the pharmaceutical company Binnopharm, which is
controlled by Sistema.
Kirill Dmitriev, CEO of RDIF and Co-CEO ofRCIF, said:
“This merger will help Obolenskoe increase its output of a wide range of products
thanks to Binnopharm’s modern production facilities. In addition, it will support the
development of innovative products and enhance the company’s research &
development capabilities. According to our estimates, the proposed consolidation of
assets will provide a synergy effect of over RUB 4bn. We expect the company will
be able to double its sales in the next four years.”
Bing Hu, Co-CEO and President of RCIF, said:
“The Russian pharmaceutical market is of interest both for local companies and
international players. Not only will the merger create one of the largest
pharmaceutical companies in the Russian market, but it will also facilitate the
development of an R&D center, which would be a compelling prospect for
international biotechnology and pharmaceutical companies, including Chinese
players.”
Andrey Dubovskov, Presidentof Sistema, noted:
“We are pleased to welcome a new equity partner in Obolenskoe. RDIF and its co-
investors invest into promising Russian projects aimed at addressing high-priority
tasks that Russian economy faces. RDIF and its co-investors’ decision to join this

2. project to create a pharmaceuticals holding on the basis of Obolenskoe and
Binnopharm is a strong confirmation of the project’s investment case and its
importance for the development of the sector.”
Yuri Soloviev, First Deputy President and Chairman of VTB Bank
ManagementBoard, noted:
“The pharmaceutical industry is one of the fastest growing sectors globally, and it is
now also a priority sector for investments in Russia. Sistema is one of the most
successful investors and a long-standing partner of VTB. We strongly believe that
by working together and drawing in experienced partners, such as the Russian
Direct Investment Fund, we will succeed in creating a major pharmaceutical holding
and market leader. VTB Group plans to further expand the merged company’s
capabilities, and contribute heavily to the development of the pharmaceutical
industry – which is one of the most socially significant sectors of the Russian
economy.”
***
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund
established in 2011 to make equity co-investments, primarily in Russia, alongside
reputable international financial and strategic investors. RDIF acts as a catalyst for
direct investment in the Russian economy. RDIF’s management company is based
in Moscow. Currently, RDIF has experience of the successful joint implementation
of more than 70 projects with foreign partners totaling more than RUB 1.5tn and
covering 95% of the regions of the Russian Federation. RDIF portfolio companies
employ more than 700,000 people and generate revenues which equate to more than
5% of Russia’s GDP. RDIF established joint strategic partnerships with leading
international co-investors from more than 15 countries that total more than $40bn.
Further information can be found at www.rdif.ru
Russia-China Investment Fund (RCIF) is a joint fund, established by the Russian
Direct Investment Fund and China Investment Corporation (CIC). The activity of
RCIF is aimed at development of bilateral economic, trade and investment relations
between Russia and China. Further information can be found at www.rcif.com
Sistema PJSFC is a publicly traded diversified Russian holding company serving
over 150 million customers in such sectors as telecommunications, high tech,
banking, retail, forest products, agriculture, real estate, tourism and healthcare
services. The company was founded in 1993. Its revenue in 2018 reached RUB

3. 773.9bn; its total assets equaled RUB 1.5tn as of 31 December 2018. Sistema's
global depositary receipts are listed under the symbol “SSA” on the London Stock
Exchange. Sistema’s ordinary shares are listed under the “AFKS” ticker on the
MoscowExchange. Further information can be found at www.sistema.com
JSC PE Obolenskoe is a Russian pharmaceutical company engaged in the
development, production and promotion of modern and high-quality
pharmaceuticals in accordance with GMP and ISO international standards. The
company produces more than 150 prescription and over-the-counter
pharmaceuticals. The Company’s portfolio includes both innovative and generic
pharmaceuticals. Further information can be found at http://obolensk.ru/
JSC Binnopharm is one of Russia's largest full-cycle biopharmaceutical companies
with an in-house R&D division. The company produces biotech pharmaceuticals in
several treatment areas (including hepatitis B vaccine, interferons and
erythropoietin, a line of pulmonology and neurology drugs, infusion solutions and
anti-viral drugs). Binnopharm portfolio includes about 20 pharmaceuticals, 40 more
are undergoing development and authorization procedures. Further information can
be found at http://binnopharm.ru/
JSC VTB Bank, its subsidiary banks and financial organizations (VTB Group) is an
international financial group, offering a wide range of financial and banking
services and products in Russia, the CIS, and select countries of Europe, Asia, and
Africa. VTB Bank provides a full range of banking services through a wide network
of branches. Its subsidiary organizations offer insurance, leasing, factoring and other
financial services. VTB Group has the most extensive international network of any
Russian bank, with more than 20 banks and financial companies in more than 20
countries. As of 31 December 2018, the Group was the second largest financial
group in Russia by assets (RUB 14.760tn) and by customer accounts (RUB 10.403
tn). The Government of the Russian Federation is VTB Group’s main shareholder
and owns 60.9% of the voting shares through the Federal Property Management
Agency. Further information can be found at http://vtb.ru/
For additional information contact:
Arseniy Palagin Andrew Leach/ Maria Shiryaevskaya
Russian Direct InvestmentFund Hudson Sandler
Press Secretary Tel: +44 (0) 20 7796 4133
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

4. Jessy Zheng
Russia-ChinaInvestment Fund
Beijing, China
Tel.: +86 10 5762 9000
Fax: +86 10 57629111
E-mail: jie.zheng@rcif.com
YuryS. Trofimov
Russia-ChinaInvestmentFund
Moscow, Russia
Tel.: +7 (495) 230-05-55ext. 4243
Mob.: +7 (985) 765-13-12
E-mail: yury.trofimov@rcif.com