TRADE BETWEEN RUSSIA & USA Financing & Facilitation Measures

CONTENTS 1.GLOBAL CRISIS IMPACT 2.USA & RUSSIA – STRATEGIC PARTNERS 3.FACILITATION MEASURES FOR INTENSIFICATION OF TRADE BETWEEN USA & RUSSIA 4.MAIN JOINT GOALS

GLOBAL CRISIS IMPACT USA AND RUSSIA REMAIN EXTREME IMPORTANT TRADING PARTNERS IN THEIR REGIONS AS OF 1Q 2009 USA ranked as the most important Trading Partner in North America Russia is on the 2d place among most important Trading Partners in Central / Eastern Europe Source: Trade Finance survey prepared by IMF / Bankers Association for Finance and Trade (BAFT) and FImetrix (

GLOBAL CRISIS IMPACT GLOBAL DECREASE BY TYPES OF TRADE TRANSACTIONS GLOBAL DECREASE IN VALUE Letters of credit11% Export Credit Insurance4% Short-term export working Capital3% Source: Trade Finance survey prepared by IMF / Bankers Association for Finance and Trade (BAFT) and FImetrix ( - January 2009, comparing to October 2008

GLOBAL CRISIS IMPACT GLOBAL DECREASE OF TRADE TRANSACTIONS BY REGIONS Overall Changes in Value – 9% (in January 09 comparing to October 08) Overall Changes in Value – 13% (in January 09 comparing to October 08) Source: Trade Finance survey prepared by IMF / Bankers Association for Finance and Trade (BAFT) and FImetrix ( - January 2009, comparing to October 2008 Eastern Europe suffers deeper changes in Value

GLOBAL CRISIS IMPACT Trade Finance activities by regions marked with orange circles B&N Bank also faces substantial Trade Finance decrease almost in all branches dealing with Trade Finance transactions, as per 4Q 2008 Crisis impact

GLOBAL CRISIS IMPACT MAIN REASONS FOR DECREASE IN VOLUME OF TRADE TRANSACTIONS Lack of availability of credit for our corporate customers A fall in the demand for trade activities Less credit availabilities at Russian Banks Less credit availabilities at counterparty banks Pricing increase

GLOBAL CRISIS IMPACT FINANCE SECTOR IN RUSSIA SHOWS COMPARATIVE STABILITY HOWEVER TRADE FINANCE POSSIBILITIES WILL APPEAR IN RUSSIA ONLY ONCE THE FOREIGN FINANCING IS AVAILABLE

USA & RUSSIA – STRATEGIC PARTNERS CORE IMPORTERS AND EXPORTERS OF RUSSIA IN 2007 USA export to Russia has been increasing by 20% since 2004 till 2006 and increased by 94.6% in 2007 reaching US$ 9,5 bln. USA remains one of the strategic Trade partners for Russia

USA & RUSSIA – STRATEGIC PARTNERS VOLUMES OF IMPORT & EXPORT ARE STABILIZING IN RUSSIA Trade flows show upside for further USA & Russia trade cooperation Investments would be helpful Russian Export & Import dynamic Investments to Russia in 2008 (mln. US$) (In %, comparing to December 2007) Trade flows show upside for further USA & Russia trade cooperation Investments would be helpful Volumes of Import & Export are stabilizing in Russia

HOW TO INTENSIFY TRADE BETWEEN USA & RUSSIA? MAJOR FINANCING INSTRUMENTS For import transactions of Russian companies  Deferred payment Letters of Credit  Letters of Credit with post-financing  Banker’s acceptances  Trade Loans  Direct Loans covered by the SBLC  ECA backed financing  Trade related bilateral / syndicated loans designated to finance several import purchase contracts For export transactions of Russian companies  Banker’s acceptances  Trade Loans  Pre-export finance structures  Direct Loans covered by the SBLC  ECA backed financing  Trade related bilateral loans secured with trade related cash flows

CCC SUPPORT IN INTENSIFYING USA EXPORT TO RUSSIA Commodity Credit Corporation (CCC) guarantees encourage exports of agricultural goods to buyers in countries where credit is necessary to maintain or increase U.S. Sales The Export Credit Guarantee Program (GSM-102) underwrites credit extended by the private banking sector in the United States (or, less commonly, by the U.S. exporter) to approved foreign banks using dollar-denominated, irrevocable letters of credit to pay for food and agricultural products sold to foreign buyers RUSSIAN BANKS ARE LOOKING FOR… accreditation to the Program greater limits (i.e. some ECAs set up limits up to 50% of the approved bank capital) greater allocation for Russia (99.8% out of October 2008 allocation was committed within a month, according to withdrawal of the poultry exclusion from the list of the eligible goods under GSM-102 Program allocation for Russia HOW TO INTENSIFY TRADE BETWEEN USA & RUSSIA?

US EXIM SUPPORT IN INTENSIFYING USA EXPORT TO RUSSIA Financial Institution Buyer Credit Insurance Policy & Letter of Credit Policy protects US Banks that finance purchases by international buyers of U.S. goods and services, generally on terms up to 180 days via Trade related Loans or financed LCs  Benefits to Lender: Coverage at least 90% of risk. Interest is covered up to prime rate minus 0.5%. Ex-Im Bank’s medium-term insurance protects longer-term financing to international buyers of capital equipment or services, covering one or a series of shipments.  Benefits to Lender : Medium-term financing Financing can extend up to 5-7 years and up to $10 million. The insured portion is the lesser of 85% of the net U.S. contract value or the U.S. content of the exporter’s supply contract HOW TO INTENSIFY TRADE BETWEEN USA & RUSSIA?

US EXIM SUPPORT IN INTENSIFYING USA EXPORT TO RUSSIA RUSSIAN BANKS ARE LOOKING FOR… Renewal of the Discretionary Credit Limits for Russia under Short Term Insurance Policies. (For instance, there are no such restrictions for: Botswana, Chile, Colombia, Iceland, India, South Korea, Mexico, Panama, Poland, Hungary, etc., according to Advance payment loan coverage by US EXIM HOW TO INTENSIFY TRADE BETWEEN USA & RUSSIA?

FACILITATION MEASURES To renew and intensify cooperation between US and Russian Banks To withdraw restrictions applied for CCC and US Exim allocations for Russia To make the compliance procedures applicable for Russian and other international banks practically efficient, i.e.:  Necessity to provide the US Bank with the utility bills of the beneficial shareholder of the Bank – private individual – could be easily overpassed and doesn’t really serve the goal to identify the Client properly;  Necessity to identify the wire’s receiver ultimate beneficiary, being not a client of the Russian Bank – unjustifiably and inapplicable, given that Bene does not deal with the Russian Bank) To extend the Facilitation programs coverage To provide additional government support via Banks of Development and Export Credit Agencies HOW TO INTENSIFY TRADE BETWEEN USA & RUSSIA?

BANKS OF DEVELOPMENT: FACILITATION MEASURES OF IFC & EBRD TFP & GTFP Program A/B Trade Related Syndicated Loans arranged by IFC & EBRD for Russian bank’s Subordinated Loans REQUIRED SUPPORT TO THE RUSSIAN BANKS “Financial Institutions Development Program – II” Purchases from USA vendors of advanced banking technology decisions “Technical assistance programs” from Banks of Development and other interstates bodies (EBRD / European Counsel / The World Bank / IFC and others) TFP programs of VEB, IBRD & FMO should be in place Accreditation to exciting TFP & GTFP Programs Limits increase HOW TO INTENSIFY TRADE BETWEEN USA & RUSSIA?

MAIN JOINT GOALS 1.TO SUPPORT COMPANIES’ TRADE ACTIVITIES, MITIGATING THE RISK AND PROVIDING REQUIRED FINANCING 2.TO LEAD NATIONAL INTERESTS, STIMULATING THE INCREASE OF EXPORT FLOWS 3.TO “RESET” COOPERATION BETWEEN RUSSIAN AND US BANKS, FOCUSING ON COMPARATIVELY STABLE BANKS IN TOUGH TIMES