Moscow, 18 December 2017– Sistema PJSFC (hereinafter, “Sistema” or the “Corporation”) (LSE: SSA, MOEX: AFKS) announces that today the Eighteenth Arbitration Court of Appeal in Chelyabinsk ruled to uphold the judgment of the Arbitration Court of the Republic of Bashkortostan dated 30 August 2017 on the claim of Rosneft, Bashneft and the Republic of Bashkortostan (together – the “Claimants”) against the Corporation and its subsidiary Sistema Invest.

According to the ruling of the court of appeal, Sistema and Sistema Invest must pay to Bashneft RUB 136,273,554,065 for damages allegedly suffered by Bashneft as a result of its reorganisation in 2014.

The Corporation plans to implement the court’s ruling in accordance with the procedure established by law, and will simultaneously dispute the ruling of the appeal court by filing a cassation appeal to the Arbitration Court of the Urals District within the time limit prescribed by law.

The Corporation is servicing and plans to continue to service its credit and other financial obligations in a timely manner and in full.

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