On September 12, 2014 the decision of the National Commission for Securities and Stock Market "On  amendments to the Regulation on carrying out depositary activities"4 (hereinafter, the Decision)  came into effect.

The Decision provides for the course of actions under agreements on servicing securities issues  between issuers and the Central Depository that provide for the payment of dividends in monetary  form.

Thus an issuer must arrange for the transfer of funds to be paid to depositors of a depositary  institution and to clients of a correspondent depository to the cash account of the Central  Depository at the Settle- ment Center. On its part, the Central Depository should arrange for the  transfer of funds to the appropri- ate accounts of depositary institutions and correspondent  depositories no later than three business days upon their receipt and simultaneously provide an  instruction on such payment, and shall indicate the total amount of accrued dividends (income) and  their amount per security. Depositary institutions should pay the obtained funds to their  depositors in accordance with the terms of agreements on servicing/opening se- curities accounts or  in accordance with the procedure provided for in the securities account questionnaire.  Correspondent depositories should also pay the received funds to their clients.

The funds received on accounts of the Central Depository, depository institutions and correspondent  de- positories as dividends (income) obtained on issuers’ securities shall not be deemed their  property or in- come. If no funds were paid to the owner of securities, as the latter failed to  take action required to obtain them, within 5 business days upon expiry of the established term  reverse actions should be taken. Thus, depository institutions transfer funds to the Central  Depository, which on its part sends them back to the issuer. Along with the funds, information is  sent about persons that obtained no dividends, with the amount of dividends (income) stated. The  same procedure is applied to funds in case of termination of an agreement between a depositary  institution and a depositor, unless otherwise provided.

If owners of 50 or more percent of an issuer’s shares are business entities with the State share  constituting 100 percent, the issuer shall pay dividends accrued on shares of such business  entities directly to the State.