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On the Completion of the Replacement Bond Issue and Measures to Perform Eurobond Obligations in Foreign Infrastructure

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22 December 2023

PAO Sovcomflot (MOEX:FLOT) informs that on 20 December 2023, the placement of an additional issue of replacement bonds series ZO-2028 – Russian securities replacing Eurobonds issued by SCF Capital Designated Activity Company, Ireland, with maturity on 26 April 2028 (ISIN: XS232555559396) ("Eurobonds-2028") was completed.

Following the successful replacement of Eurobonds-2028 from 2022 to 2023 in the amount of USD 382.823 million there are Eurobonds-2028 in the amount of USD 47.177 million remaining in circulation, including in foreign infrastructure in the amount of USD 44.649 million.

Issues of Russian bonds replacing Eurobonds-2028 were made subject to the requirements of the Executive Order of the President of the Russian Federation No. 430 of 5 July 2022 "On repatriation by residents participating in foreign economic activity of foreign currency and Russian Federation currency." PAO Sovcomflot will continue to make coupon payments to the holders of Eurobonds-2028 who did not participate in the exchange and whose rights are accounted for by Russian depositories, in accordance with the aforementioned executive order.

Previously, Eurobonds with maturity on 16 June 2023, ISIN: XS1433454243 ("Eurobonds-2023") were replaced by local bonds with their subsequent redemption and direct settlements with all bondholders whose rights were accounted for by Russian depositories. As a result, there are Eurobonds-2023 in the amount of USD 51.341 million remaining in foreign infrastructure.

PAO Sovcomflot is a responsible borrower and has the financial resources necessary to meet its obligations under Eurobonds-2028 and Eurobonds-2023 in full.

Due to the sanctions imposed, neither the paying agent Citibank N.A., nor the international clearing systems are ready to accept funds from the Sovcomflot Group for distribution to holders of Eurobonds. The Sovcomflot Group continues to work with Irish and UK regulators in order to obtain the approvals/confirmations required to make payments on Eurobonds-2028 and Eurobonds-2023 where the rights to such bonds are accounted for in foreign infrastructure. The Company expects to be in a position to make payments once such approvals are obtained, with proper cooperation of the paying agent Citibank N.A., as well as resolutions of other sanctions-related payment issues, and will keep the bondholders and other stakeholders updated of the status of work to resume payments.

For all questions regarding the servicing of obligations under Eurobonds-2028 and Eurobonds-2023, please contact: ir@scf-group.ru. In your letter, please specify the number of Eurobonds, place of safekeeping (name of the depository) and residence status of the ultimate beneficial owner.

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