Obligation Russiya 8.25% ( XS0114295560 ) en USD

Russiya

100 % ⇌

Russie

XS0114295560 ( en USD )

8.25% par an ( paiement semestriel )

31/03/2010 - Obligation échue

Prospectus brochure de l'obligation Russia XS0114295560 en USD 8.25%, échue

100 000 USD

2 966 119 855 USD

La Russie est une vaste fédération transcontinentale s'étendant sur l'Europe et l'Asie, possédant une riche histoire, une économie diversifiée et une importante influence géopolitique.

L'Obligation émise par Russiya ( Russie ) , en USD, avec le code ISIN XS0114295560, paye un coupon de 8.25% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 31/03/2010

LISTING PARTICULARS

Russian Federation
Russian Federation U.S.$426,793,154 Bonds due 31 March 2007 to 31 March 2030 ("2030 Bonds") and
Russian Federation U.S.$64,284,650 Bonds due 31 March 2006 to 31 March 2010 ("2010 Bonds" and,
together with the 2030 Bonds, the "Bonds")
These Listing Particulars relate to an offering of Bonds by the Ministry of Finance of the Russian Federation acting on behalf of the
Russian Federation (the "Offering"). The Offering implements an exchange offer described in greater detail in "Terms of the Offering--
Background to the Offering" herein.
The Bonds will be direct, unconditional and unsecured obligations of the Russian Federation and will be fungible in all respects with
Bonds previously issued in connection with the Russian Federation's March 2004 IBEC/IIB restructuring, the Russian Federation's December
2002 FTO Debt restructuring and the Russian Federation's August 2000 London Club restructuring. U.S.$354,679,295 aggregate principal
amount of 2030 Bonds and U.S.$54,063,620 aggregate principal amount of 2010 Bonds were issued in connection with the IBEC/IIB
restructuring, U.S.$1,192,710,277 aggregate principal amount of 2030 Bonds and U.S.$183,842,536 aggregate principal amount of 2010 Bonds
were issued in connection with the FTO Debt restructuring and U.S.$18,336,205,144 aggregate principal amount of 2030 Bonds and
U.S.$2,820,041,044 aggregate principal amount of 2010 Bonds were issued in connection with the London Club restructuring.
U.S.$19,883,594,716 aggregate principal amount of 2030 Bonds and U.S.$2,767,442,247 aggregate principal amount of 2010 Bonds are
currently outstanding. The aggregate principal amount of 2010 Bonds to be issued on the Settlement Date will be U.S.$64,284,650, of which
U.S.$ 58,177,609 will be outstanding after payment on the Settlement Date of 9.5% of the principal amount of such 2010 Bonds, as more fully
discussed below. Subsequent to the Offering, U.S.$20,310,387,870 aggregate principal amount of 2030 Bonds and U.S.$2,825,619,855
aggregate principal amount of 2010 Bonds will be outstanding.
Interest on the 2030 Bonds is payable semi-annually in arrear on 31 March and 30 September in each year, commencing on 30
September 2000, at the rates set out in "Terms and Conditions of the 2030 Bonds--5. Interest" herein. Interest on 2030 Bonds accruing from 31
March 2000, but excluding interest that would otherwise be due for payment from and including 14 June 2002 and to but excluding 16 March
2004 (the "Settlement Date") will be paid on the Settlement Date to the holders of 2030 Bonds issued in the Offering. See "Terms of the
Offering--Cash Payments" herein. Interest will be paid thereafter on 31 March and 30 September of each year, commencing on 31 March 2004.
Unless previously redeemed, or purchased and cancelled, 2030 Bonds will be redeemed on 31 March and 30 September in each year,
commencing on 31 March 2007, in 47 semi-annual instalments in the respective amounts set forth in the terms and conditions of the 2030
Bonds. See "Terms and Conditions of the 2030 Bonds--6. Redemption, Purchase and Cancellation" herein.
Interest on the 2010 Bonds is payable (except as noted below) semi-annually in arrear on 31 March and 30 September in each year,
commencing on 30 September 2000, at the rates set out in "Terms and Conditions of the 2010 Bonds--5. Interest" herein. Interest on 2010
Bonds accruing from 31 March 2000, but excluding interest that would otherwise be due for payment from and including 14 June 2002 and to
but excluding the Settlement Date will be paid on the Settlement Date to the holders of 2010 Bonds issued in the Offering, together with 9.5%
of the principal amount of the 2010 Bonds. See "Terms of the Offering--Cash Payments" herein. Interest will be paid thereafter on 31 March
and 30 September of each year, commencing on 31 March 2004. Unless previously redeemed, or purchased and cancelled, 2010 Bonds will be
redeemed on 31 March and 30 September in each year, commencing on 31 March 2006, in nine semi-annual instalments in the respective
amounts set forth in the terms and conditions of the 2010 Bonds. The initial holders of 2010 Bonds issued on the Settlement Date will be
required to waive the right to receive a portion of the initial interest payment. See "Terms of the Offering--Cash Payments" and "Terms and
Conditions of the 2010 Bonds--6. Redemption, Purchase and Cancellation" herein.
The Bonds have not been and will not be registered under the United States Securities Act of 1933 (the "Securities Act") or any other
securities laws and may be offered and sold only in transactions that are exempt from, or are not subject to, the registration requirements of the
Securities Act. The Bonds are being offered in the United States only to Qualified Institutional Buyers (as defined in Rule 144A under the
Securities Act) and outside the United States in offshore transactions in reliance on Regulation S under the Securities Act.
The Bonds will be issued in the form of one or more permanent global bonds in registered form without interest coupons attached. On
the Settlement Date, global bonds representing Bonds offered and sold in the United States will be deposited with the custodian, and registered
in the name of the nominee, for The Depository Trust Company and global bonds representing Bonds offered and sold outside the United States
will be registered in the name of, and deposited with, the sub-common depositary for the common depositary for Euroclear and Clearstream.
See "Form and Transfer of Bonds" herein.
Application has been made to list the Bonds on the Luxembourg Stock Exchange.
The date of these Listing Particulars is 12 March 2004.
1

The Russian Federation, having made all reasonable enquiries, confirms that these Listing Particulars contain all information with
respect to the Russian Federation and the Bonds which is material in the context of the issue and offering of the Bonds, that such information is
true and accurate in every material respect and is not misleading in any material respect and that these Listing Particulars do not omit to state
any material fact necessary to make such information not misleading. The opinions, assumptions and intentions expressed in these Listing
Particulars with regard to the Russian Federation are honestly held, have been reached after considering all relevant circumstances and are based
on reasonable assumptions. The Russian Federation accepts responsibility for the information contained in these Listing Particulars.
Information contained herein that is identified as being derived from a publication of the Russian Federation or one of its agencies or
instrumentalities is included herein on the authority of such publication as an official public document of the Russian Federation. All other
information contained herein is included as an official public statement made on the authority of the Minister of Finance of the Russian
Federation.
No person has been authorised to make or provide any representation or information regarding the Russian Federation or the Bonds
other than as contained in these Listing Particulars and in the related offering circular. Any such representation or information should not be
relied upon as having been authorised by the Russian Federation or any agency thereof. The delivery of these Listing Particulars at any time
does not imply that the information contained herein is correct as at any time subsequent to their date. Unless otherwise indicated, all
information in these Listing Particulars is given as of its date.
The Fiscal Agent, the Registrar, the Paying Agent and the Transfer Agents referred to herein make no representation regarding these
Listing Particulars or the Bonds.
These Listing Particulars do not constitute an offer of, or an invitation by or on behalf of, the Russian Federation or any agency
thereof in any jurisdiction where an offer or invitation by or on behalf of the Russian Federation or any agency thereof is not permitted by the
laws of such jurisdiction. The distribution of these Listing Particulars and the offering of the Bonds in certain jurisdictions may be restricted
by law. Persons into whose possession these Listing Particulars come should inform themselves of and observe all such restrictions.
With effect from 1 January 1998, the rouble was redenominated, with one new rouble being set equal to one thousand old roubles.
All references herein to amounts in "roubles" are references to new roubles, and any rouble amounts relating to the period prior to 1 January
1998 have been restated in new roubles. The rouble/dollar exchange rate as reported by the Central Bank of the Russian Federation (the
"Central Bank") on 1 January 2004 was 29.45 roubles to the dollar.
In these Listing Particulars, all references to "dollar," "U.S.$" and "$," are to the lawful currency of the United States of America,
all references to "ECU" are to European Currency Units, all references to "euro" and ""are to the currency introduced at the start of the third
stage of European economic and monetary union pursuant to the Treaty establishing the European Community, as amended, and all
references to interest accruing from a specified date or to a specified date are to interest accruing from and including the first specified date to
but excluding the second specified date.
Except as otherwise provided, translations of amounts from one currency into another currency are solely for the convenience of the
reader and are made at various exchange rates. No representation is made that amounts referred to herein could have been, or could be,
converted into another currency at any particular exchange rate or, in the case of rouble and dollar amounts, at all.
Prior to the dissolution of the Soviet Union, the collection of data and production of official statistical information with respect to
the Russian economy was geared to the needs of central planning. Since that time, the means employed in collecting data and methodologies
used in the production of statistics have evolved significantly from year to year. Statistical information reported herein has been derived from
official publications of, and information supplied by, a number of agencies of the Russian Federation, including the State Committee on
Statistics ("Goskomstat"), the Central Bank, the Ministry of Finance of the Russian Federation (the "Ministry of Finance") and the State
Customs Committee of the Russian Federation (the "Customs Committee"), and by The Bank for Foreign Economic Affairs of the USSR
("Vnesheconombank"). In certain cases, the Ministry of Finance has performed arithmetic calculations or otherwise determined the form in
which information is classified or presented herein. Unless otherwise stated, all annual information, including budget information, is based
on calendar years, and interim statistical information has not been annualised. Data included in these Listing Particulars has been subject to
rounding adjustments; accordingly, data shown for the same item of information may vary, and total figures may not be arithmetical sums of
their components. In addition, certain data presented herein differ from data made public previously due to regular revisions conducted by
Goskomstat, the Central Bank, the Ministry of Finance, the Customs Committee, Vnesheconombank and other Russian authorities.
Except as otherwise provided herein, any reference in these Listing Particulars to an action being taken by the Russian Federation
should be construed as a reference to such action being taken by the Ministry of Finance acting on behalf of the Russian Federation.
2

TABLE OF CONTENTS

TERMS OF THE OFFERING .....................................................................................................................................6
Background to the Offering ...........................................................................................................................6
Cash Payments ...............................................................................................................................................6
Further Issuances of Bonds............................................................................................................................8
Cross-Acceleration of Russian Federation Eurobonds ................................................................................8
TERMS AND CONDITIONS OF 2030 BONDS ..................................................................................................... 10
1.
Form, Denomination and Title ..................................................................................................... 10
2.
Transfer of Bonds and Issue of Bonds ......................................................................................... 10
3.
Status ............................................................................................................................................. 11
4.
Negative Pledge and Covenant..................................................................................................... 11
5.
Interest........................................................................................................................................... 13
7.
Payments ....................................................................................................................................... 14
8.
Taxation......................................................................................................................................... 16
9.
Events of Default .......................................................................................................................... 17
10.
Prescription ................................................................................................................................... 18
11.
Replacement of Bond Certificates................................................................................................ 18
12.
Meetings of Bondholders, Modification and Waiver................................................................... 18
13.
Further Issues ................................................................................................................................ 19
14.
Notices........................................................................................................................................... 19
15.
Currency Indemnity...................................................................................................................... 19
16.
Governing Law ............................................................................................................................. 19
TERMS AND CONDITIONS OF 2010 BONDS ..................................................................................................... 20
1.
Form, Denomination and Title ..................................................................................................... 20
2.
Transfer of Bonds and Issue of Bonds ......................................................................................... 20
3.
Status ............................................................................................................................................. 21
4.
Negative Pledge and Covenant..................................................................................................... 21
5.
Interest........................................................................................................................................... 23
6.
Redemption, Purchase and Cancellation...................................................................................... 23
7.
Payments ....................................................................................................................................... 24
8.
Taxation......................................................................................................................................... 25
9.
Events of Default .......................................................................................................................... 26
10.
Prescription ................................................................................................................................... 27
11.
Replacement of Bond Certificates................................................................................................ 27
12.
Meetings of Bondholders, Modification and Waiver................................................................... 27
13.
Further Issues ................................................................................................................................ 28
14.
Notices........................................................................................................................................... 28
3

15.
Currency Indemnity...................................................................................................................... 28
16.
Governing Law ............................................................................................................................. 28
RUSSIAN FEDERATION......................................................................................................................................... 29
Territory, Population and Natural Resources ............................................................................................ 29
Russia and the Dissolution of the Soviet Union........................................................................................ 29
Political System........................................................................................................................................... 30
Political Parties, Most Recent Elections and Political Developments ..................................................... 32
Federal Structure and Regional Issues....................................................................................................... 33
International Relations ................................................................................................................................ 34
THE RUSSIAN ECONOMY.................................................................................................................................... 37
Overview of Economic Reforms................................................................................................................ 37
Civil and Commercial Law......................................................................................................................... 38
Gross Domestic Product ............................................................................................................................. 40
Principal Sectors of the Economy.............................................................................................................. 45
Environment ................................................................................................................................................ 52
Employment................................................................................................................................................. 52
Wages and Income ...................................................................................................................................... 54
Social Benefits and Expenditure ................................................................................................................ 54
Pension Reform ........................................................................................................................................... 55
BALANCE OF PAYMENTS AND FOREIGN TRADE ....................................................................................... 56
Balance of Payments ................................................................................................................................... 56
Foreign Trade .............................................................................................................................................. 61
Official International Reserves................................................................................................................... 69
PUBLIC FINANCE ................................................................................................................................................... 71
Overview...................................................................................................................................................... 71
Federal Budgetary Process ......................................................................................................................... 73
2004 Federal Budget Law........................................................................................................................... 74
Federal Budget Revenue............................................................................................................................. 76
Federal Budget Expenditure ....................................................................................................................... 81
Deficit Financing......................................................................................................................................... 84
Federal-Local Fiscal Relations ................................................................................................................... 86
Extra-Budgetary Funds ............................................................................................................................... 87
Tax Reform.................................................................................................................................................. 88
MONETARY AND FINANCIAL SYSTEM .......................................................................................................... 90
The Central Bank of the Russian Federation............................................................................................. 90
Monetary Policy .......................................................................................................................................... 91
Banking ....................................................................................................................................................... 96
Foreign Exchange Regulations................................................................................................................... 98
4

Foreign Exchange Market........................................................................................................................... 99
Capital Markets ......................................................................................................................................... 100
PUBLIC DEBT ........................................................................................................................................................ 102
External Debt............................................................................................................................................. 102
External Debt Restructuring ..................................................................................................................... 103
External Debt Service Projection ............................................................................................................. 105
External Borrowings ................................................................................................................................. 107
Current External Debt Policy ................................................................................................................... 107
Domestic Debt........................................................................................................................................... 108
External Assets .......................................................................................................................................... 110
Relations with International Financial Institutions ................................................................................. 111
FORM AND TRANSFER OF THE BONDS ......................................................................................................... 112
Form of Bonds ........................................................................................................................................... 112
Exchange of Interests in Global Bonds for Bond Certificates .................................................................. 112
DTC, Euroclear and Clearstream Arrangements ...................................................................................... 113
TRANSFER RESTRICTIONS ................................................................................................................................ 117
RUSSIAN TAXATION ........................................................................................................................................... 119
General ..................................................................................................................................................... 119
Interest on Bonds ....................................................................................................................................... 119
Disposal or Redemption of Bonds............................................................................................................. 120
Other Taxes ................................................................................................................................................ 120
GENERAL INFORMATION ................................................................................................................................. 122
INDEX OF CERTAIN OFFERING DEFINITIONS.............................................................................................. 124

5

TERMS OF THE OFFERING
Background to the Offering
On 2 December 1997, Vnesheconombank agreed to assume responsibility for certain unpaid Soviet-era debt
originally owed to foreign banks and other financial institutions organised as the London Club, and the holders of this
debt agreed to exchange their existing claims for new obligations of Vnesheconombank. On 25 August 2000, the
Russian Federation agreed to assume responsibility for Vnesheconombank's London Club debt, and Vnesheconombank's
London Club creditors agreed to exchange their existing claims on Vnesheconombank for Bonds.
On 7 September 2001, representatives of the Russian Federation, the International Bank for Economic Co-
operation ("IBEC"), the International Investment Bank ("IIB") and Lloyds TSB Bank, as chair of the consultative
working groups of IBEC and IIB creditors, agreed in principle to restructure the debt of IBEC ("IBEC Debt") and the
debt of IIB ("IIB Debt") owed to foreign creditors on the terms set out in the IBEC/IIB Debt Exchange Term Sheet. The
term sheet, as subsequently amended, provides that the foreign holders of IBEC Debt and IIB Debt will be deemed to
have received in exchange for their IBEC Debt and IIB Debt, pursuant to an exchange offer to be made by IBEC and IIB,
a like principal amount of indebtedness of the former USSR owed by Vnesheconombank to IBEC and IIB ("Former
USSR Debt"), and to have immediately and automatically tendered such Former USSR Debt in a simultaneous offer to
exchange Bonds for such Former USSR Debt to be made by the Ministry of Finance of the Russian Federation on behalf
of the Russian Federation. This series of transactions was effected on 16 March 2004.
The present Offering is made pursuant to Resolution No. 770 of the Government of the Russian Federation
dated December 23, 2003 that provides for the exchange of indebtedness of the former USSR owed by
Vnesheconombank to IIB ("Eligible Debt") for Bonds and certain cash payments due in respect of the Bonds. The Bonds
now being listed under these Listing Particulars are issued pursuant to the exchange offer to be made by the Ministry of
Finance of the Russian Federation on behalf of the Russian Federation.
Cash Payments
Holders of Bonds issued in the Offering will receive on the Settlement Date 9.5% of the initial principal
amount of their 2010 Bonds and (except as noted below) all of the interest payments on their 2030 Bonds and 2010
Bonds that would have been made if their 2030 Bonds and 2010 Bonds had been issued on 25 August 2000 in
connection with the Russian Federation's London Club restructuring, but excluding all interest in respect of the Bonds
that would otherwise be due for payment from and including 14 June 2002 and to but excluding the Settlement Date, as
follows:
Cash Payment in Respect of 2030 Bonds
· $73.75 in cash in respect of each $1,000 principal amount of such Holder's 2030 Bonds, subject to the
rounding rule referred to below
This payment will comprise, with respect to each $1,000 principal amount of such Holder's 2030 Bonds, all of
the interest payments (in the case of each interest payment, rounded down to the nearest cent) that would have
been made on such 2030 Bonds if such 2030 Bonds had been issued on 25 August 2000 in connection with the
Russian Federation's London Club restructuring, but excluding all interest in respect of the 2030 Bonds that
would otherwise be due for payment from and including 14 June 2002 and to but excluding the Settlement Date,
set forth below.
6

Interest Payments Due on Each $1,000 Principal Amount of 2030 Bonds
Amount
Interest Payment Date
(before rounding)

30 September 2000...........................
$11.25
31 March 2001..................................
$12.50
30 September 2001...........................
$25.00
31 March 2002..................................
$25.00

Total=
$73.75

Due to the rounding of individual interest payments referred to above, the amount of cash that will be
received by a participating Holder in respect of its 2030 Bonds may not be exactly proportionate to the total
amount of the cash payment, noted above, that will be received in respect of each $1,000 principal amount of
2030 Bonds.
The terms and conditions of the 2030 Bonds are set out in the "Terms and Conditions of the 2030 Bonds"
(and, together with the "Terms and Conditions of the 2010 Bonds", the "Terms and Conditions of the
Bonds") below.
Cash Payment in Respect of 2010 Bonds
· $244.32 in cash in respect of each $1,000 principal amount of such Holder's 2010 Bonds, subject to the
rounding rule referred to below.

This payment will comprise, with respect to each $1,000 principal amount of 2010 Bonds:

--
9.5% of the initial principal amount of such 2010 Bonds (the "Initial Principal Payment"); and

--
all of the other interest payments (in each case, rounded down to the nearest cent) that would have been
made on such 2010 Bonds if such 2010 Bonds had been issued on 25 August 2000 in connection with
the Russian Federation's London Club restructuring, but excluding all interest in respect of the 2010
Bonds that would otherwise be due for payment from and including 14 June 2002 and to but excluding
the Settlement Date, set forth below.

A breakdown of the cash payments that will be made in respect of each $1,000 principal amount of 2010 Bonds
is set out below.
Cash Payments Due on Each $1,000 Principal Amount of 2010 Bonds
Amoun
Cash Payment
(before rounding

Initial Principal Payment.............................................. $95.00
Interest Payment on:

30 September 2000.................................................... $37.33125
31 March 2001........................................................... $37.33125
30 September 2001.................................................... $37.33125
31 March 2002........................................................... $37.33125

Total Cash Payment=
$244.32

Due to the rounding of individual interest payments referred to above, the amount of cash that will be received
by a participating Holder in respect of its 2010 Bonds may not be exactly proportionate to the total amount of
the cash payment, noted above, that will be received in respect of each $1,000 principal amount of 2010 Bonds.
The terms and conditions of the 2010 Bonds are set out in the "Terms and Conditions of the 2010 Bonds"
below.
7

Waiver of Specified Amount of Initial Interest Payment
IIB will be required to irrevocably waive the right to receive (a) the interest that would otherwise be due on the
Settlement Date in respect of the Initial Principal Payment on their 2010 Bonds and (b) all interest in respect of the Bonds
that would otherwise be due for payment from and including 14 June 2002 and to but excluding the Settlement Date.
Further Issuances of Bonds
The Russian Federation will be at liberty from time to time, without the consent of the Holders of the Bonds,
to create and issue further Bonds ranking equally in all respects (or in all respects save for, in the case of the 2010
Bonds, the date and amount of the first payment of principal thereon and, in the case of all Bonds, the date and amount
of the first payment of interest thereon) so that such further Bonds will be consolidated and form a single series with
the Bonds.
Cross-Acceleration of Russian Federation Eurobonds
Each series of Russian Federation Eurobonds issued during the life of the 2030 Bonds or the 2010 Bonds will
include a provision that treats an acceleration of the 2030 Bonds or the 2010 Bonds on the same basis as an
acceleration of the Russian Federation's then-existing Eurobonds for the purpose of determining whether a cross-
acceleration Event of Default has occurred (an "Expanded Cross-Acceleration Clause"). For the avoidance of doubt,
an Expanded Cross-Acceleration Clause will not treat the Bonds as Excluded Indebtedness (as defined in the terms
and conditions of the Eurobonds issued by the Russian Federation prior to August 1998, referred to below as "Existing
Eurobonds") or as any other category of indebtedness having a similar effect.
If the 2030 Bonds or the 2010 Bonds become due and payable prior to their stated maturity (or the Russian
Federation fails to make the final payment of principal on the 2030 Bonds or the 2010 Bonds in accordance with their
terms), and the principal amount of the affected bonds is at least equal to U.S.$75 million (or its equivalent in other
currencies), then holders representing at least 25% in aggregate outstanding principal amount of any series of Existing
Eurobonds may, by delivering a written notice to the Russian Federation (a "Repurchase Notice") no later than twelve
months following the date on which the 2030 Bonds or the 2010 Bonds became due and payable prior to their stated
maturity (or the date on which the Russian Federation failed to make the final payment of principal on such bonds in
accordance with their terms), require the Russian Federation to purchase the Eurobonds of such series held by such
holders at their principal amount, together with accrued interest to the date of purchase (the "Repurchase Date"), not
later than 90 days following the date of delivery (the "Repurchase Notice Delivery Date") of Repurchase Notices
representing at least 25% in aggregate principal amount of such series of Existing Eurobonds (the "Repurchase
Right"). The remaining holders of such series of Existing Eurobonds may require the Russian Federation to purchase
their Existing Eurobonds of such series on the same terms by delivering a Repurchase Notice to the Russian
Federation within 30 days of the Repurchase Notice Delivery Date.
Notwithstanding the foregoing, holders of any series of Existing Eurobonds will not have any Repurchase
Rights for so long as any Russian Federation Eurobonds which contain an Expanded Cross-Acceleration Clause (other
than Bonds) are outstanding in an aggregate principal amount in excess of U.S.$1 billion (or its equivalent in other
currencies). Repurchase Rights will be reinstated if the Russian Federation issues a series of Eurobonds during the life
of the 2030 Bonds or the 2010 Bonds that does not contain an Expanded Cross-Acceleration Clause.
A holder wishing to exercise its Repurchase Right must deliver a Repurchase Notice to the Russian
Federation, in care of the Ministry of Finance, by letter or facsimile at the following address, with copies to the Fiscal
Agent or the Luxembourg Paying Agent for the Bonds and the clearing system in which such holder's Existing
Eurobonds are held:
Ministry of Finance of the Russian Federation
9 Ilynka Street
Moscow 103097
Russia
Tel.: ++ 7 095 298 9093
Fax: ++ 7 095 913 4542
Attention: Head of Department of International Co-operation and External Debt
8

Such notice may only be provided by or through persons that are direct accountholders or participants in the
applicable clearing system. If a person wishing to exercise its Repurchase Right holds its Existing Eurobonds through
an accountholder or participant in a clearing system, it must make appropriate arrangements for such accountholder or
participant to deliver a Repurchase Notice to the Ministry of Finance on its behalf.
The Russian Federation will provide written notice of any Repurchase Notice Delivery Date to the applicable
clearing systems, issue a press release to the Dow Jones News Service and Reuters News Service no later than 5:00
p.m., London time, on the next Business Day immediately following such Repurchase Notice Delivery Date and (so
long as the Bonds are listed on the Luxembourg Stock Exchange and the rules of the Luxembourg Stock Exchange so
require) publish a notice in a leading newspaper having general circulation in Luxembourg (which is expected to be
the Luxemburger Wort). For these purposes, "Business Day" means a day other than a Saturday, a Sunday or a day on
which banks in London are not open for domestic and foreign exchange business, banks in New York City are required
or authorised to close, the Luxembourg Stock Exchange is not open for trading, or Euroclear, Clearstream or DTC are not
open. The Russian Federation will give notice of any Repurchase Date in the manner specified above no later than
5:00 p.m., London time, on the thirty-fifth day prior to such Repurchase Date.
The Repurchase Right was implemented in connection with the Russian Federation's 2000 London Club
restructuring by means of a deed of covenant (the "Deed of Covenant") executed by the Russian Federation in favour
of all holders from time to time of any series of Existing Eurobonds. The Deed of Covenant is held by the Fiscal
Agent and is available for inspection at the offices of the Fiscal Agent.
Any reference under this heading to any action being taken by the Russian Federation shall be
construed as a reference to such action being taken by the Ministry of Finance acting on behalf of the Russian
Federation or, in the case of the reference to the Russian Federation's issuance of Eurobonds during the life of
the 2030 Bonds or the 2010 Bonds, to such action being taken by the Ministry of Finance or another such body
of executive authority whose functions, pursuant to a decision of the Government of the Russian Federation,
include the preparation and/or implementation of the federal budget and which is hereafter authorised under
the laws of the Russian Federation to issue Eurobonds on behalf of the Russian Federation during the life of the
2030 Bonds or the 2010 Bonds.
9

TERMS AND CONDITIONS OF 2030 BONDS

The following, save for the paragraphs in italics, is the text of the terms and conditions of the 2030 Bonds
which, subject to amendment, will be endorsed on each Bond Certificate and will be attached and (subject to the
provisions thereof) apply to each Global Bond:

The U.S. Dollar Denominated Bonds due 2007 to 2030 (the "Bonds") (which expression includes any further
Bonds issued pursuant to Condition 13 and forming a single series with the Bonds) of the Ministry of Finance of the
Russian Federation (the "Ministry of Finance") acting on behalf of the Russian Federation were authorised pursuant to
the provisions of Federal Law No. 136-FZ of 29 July 1998, Government Resolution No. 478 of 23 June 2000, and
Government Resolution No. 426 of 14 June 2002 and Government Resolution No. 764 of 19 December 2003. A fiscal
agency agreement dated 24 August 2000, as amended on 17 December 2002, 15 March 2004 and 15 March 2004 (the
"Fiscal Agency Agreement") has been entered into in relation to the Bonds by the Russian Federation, The Chase
Manhattan Bank (now JPMorgan Chase Bank), London branch, as fiscal and principal paying agent (the "Fiscal
Agent") and as registrar (the "Registrar"), the other paying agents named therein (together with the Fiscal Agent and
the Registrar, the "Paying Agents") and the transfer agents named therein (the "Transfer Agents").

In these Conditions, "Fiscal Agent," "Registrar," "Paying Agent" and "Transfer Agent" shall include any
successors appointed from time to time in accordance with the provisions of the Fiscal Agency Agreement for the
Bonds, and any reference to an "Agent" or "Agents" shall mean any or all (as applicable) of such persons.

Copies of the Fiscal Agency Agreement are available for inspection during usual business hours at the
principal office of the Fiscal Agent (currently at 9 Thomas More Street, London E1W 1YT, England) and at the
specified offices of each of the other Agents. The Bondholders (as defined in Condition 1(b)) are bound by, and are
deemed to have notice of, the provisions of the Fiscal Agency Agreement for the Bonds.

1.
Form, Denomination and Title

(a)
Form and Denomination

The Bonds are in definitive fully registered form, without interest coupons attached, in a minimum
denomination of U.S.$1.00 and any amount in excess thereof which is an integral multiple of U.S.$1.00 (each an
"authorised denomination"). A certificate (each a "Bond Certificate") will be issued to each Bondholder in respect of
its registered holding or holdings of Bonds. Each Bond Certificate will be numbered serially with an identifying
number which will be recorded in the register (the "Register") which the Russian Federation shall procure to be kept by
the Registrar.

(b) Title

Title to the Bonds will pass by and upon registration in the Register. In these Conditions, "Bondholder" and
"holder" mean the person in whose name a Bond is registered in the Register (or, in the case of joint holders, the
first-named thereof). The holder of any Bond will (except as otherwise requested by such holder in writing, or as
otherwise ordered by a court of competent jurisdiction or required by law) be treated as its absolute owner for all
purposes, whether or not it is overdue and regardless of any notice of ownership, trust or any interest therein, any
writing thereon by any person (other than a duly executed transfer thereof in the form endorsed thereon) or any notice
of any previous theft or loss thereof, and no person will be liable for so treating the holder.

2.
Transfer of Bonds and Issue of Bonds

(a) Transfer

Subject to Condition 2(d), a Bond may be transferred in whole or in part in an authorised denomination upon
the surrender of the Bond Certificate representing that Bond, together with the form of transfer (including any
certification as to compliance with restrictions on transfer included in such form of transfer) endorsed thereon (the
"Transfer Form") duly completed and executed, at the specified office of the Registrar or any Transfer Agent, together
with such evidence as the Registrar or, as the case may be, such Transfer Agent may reasonably require to prove the
title of the transferor and the authority of the persons who have executed the Transfer Form. In the case of a transfer of
part only of the Bonds represented by a Bond Certificate, neither the part transferred nor the balance not transferred
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