FAS APPROVED A PEITTION OF “TATNEFT” TO BUY “SIBUR TOLIATTI”

Having considered a petition of “Tatneft” PJSC on acquiring 100% shares of the authorized capital of “Sibur Toliatti” Ltd., FAS approved the merger under some conduct conditions

The markets of synthetic rubbers in Russia typically are highly concentrated.

According to Head of FAS Department for Control over Fuel-and-Energy Complex and Chemical Industry, Dmitry Makhonin: “To prevent discriminatory conditions for rubber sale and support competition, particularly, on tire markets, FAS approved the merger with certain conditions”.

The conditions include:

1. Execute all short-term and long-term contacts for supplying synthetic rubbers that are concluded by “Sibur Toliatti” Ltd. and valid on the date of issuing the order, in accord with the contract conditions;

1. Do not allow counteragents to impose economically or technologically unreasonable conditions synthetic rubber supply contract;

1. Prevent economically or technologically unreasonable refusals or avoiding rubber supply contracts with individual buyers;

1. Do not conclude synthetic rubber supply contracts under discriminatory conditions with regard to third parties, in comparison with consumers from the group of persons of “Tatneft” PJSC, and under the conditions enabling compensation of unreasonable costs to a group of persons or gaining a higher profit that can be in competitive conditions or other comparable conditions.

The order will be valid until the “Tatneft Group” has the dominant position or is in the state of collective dominance on synthetic rubber markets within the boundaries of the Russian Federation or in the regions of Russia.