On 28 September 2011, the Cabinet of Ministers of Ukraine (the “CMU”) adopted Resolution No. 1011 amending CMU Resolution “On Domestic Government Bonds Issue” No. 80, dated 31 January 2001 which became effective on 30 September 2011. (Resolution No.80 amended by Resolution No. 1011 is referred to herein as the “Amended Resolution”).

The Amended Resolution now envisages a new type of domestic government bond. The newly introduced bond (the “Bond(s)”) has an index-linked value, which is calculated on the redemption date taking into consideration the difference between: (i) the average UAH/USD exchange rate on the inter-bank currency market (the “UAH/USD rate”) for the calendar month preceding the month in which the Bond was issued; and (ii) the UAH/USD rate for the calendar month preceding the one in which the Bond is redeemed. The nominal value of the Bonds is 1000 UAH.

The initial offering price for the Bonds is calculated individually for each buyer under each application filed for an auction on the initial Bond offer. Such application must also be approved by a decision of the Ministry of Finance of Ukraine.

The Bonds may be either medium-term (with maturities of one to five years) or long-term (with maturities of over five years). Both legal entities and individuals are able to purchase the Bonds.

Law: The Cabinet of Ministers of Ukraine Resolution “On amendments to Resolution of the Cabinet of Ministers of Ukraine No. 80, dated 31 January 2001” No. 1011, dated 28 September 2011.