On 25 July 2013 the Federal Agency for State Property Management (Rosimush’estvo) issued Order No. 218 approving the methodology for revealing a company’s non-core assets.

The Order is aimed at developing the procedure for the valuation of non-core assets of companies where the Russian Federation owns more than 50 percent of shares, in order to determine whether it is necessary to dispose of them. According to the Order, non-core assets are assets beneficially owned by the company, availability/ unavailability/disposal of which cannot influence the implementation of the company’s strategic objectives.

The Order, among other things, (i) establishes the procedure for the valuation of each of the company’s assets with respect to it being core (i.e., in terms of its influence on strategic objectives and tasks); (ii) introduces the mandatory course of actions if it is decided to dispose of the non-core asset (e.g., analyzing the profitability of the asset and circumstances when professional appraisers are to be involved); and (iii) provides for the general recommendations regarding the manner of disposal of the non- core assets. The Order recommends drafting quarterly plans of sale contracts of non-core assets that are subject to disposal.

According to the Order, the board of directors of the mother company supports the disposal of non-core assets of its subsidiaries both in Russia and abroad.

The Order was placed at the official website of Rosiumush’estvo on 29 July 2013.