KAMENSKAYA & PARTNERS Law Firm PresentationJune 25, 2010

Fifth CIS Local Counsel Forum,

Minsk, Crowne Plaza Hotel

23-25 June, 2010

Tatiana Kamenskaya Managing Partner,Kamenskaya & Partners Law Firm,

Member of the General Council,Non-commercial Partnership“Support of Competition in the CIS”

«Joint Regulation of Retail Trade in the Markets of the CIS Member States»

2June 25, 2010

Place Country % of global

retailers

Place 2009

Change

1 UK 58% 1 -

2 UAE 54% 3 1 3 USA 51% 2 -1 4 France 50% 3 -1 5 China 47% 7 2

Ranking-2010: Top-20 states by retail trade globalization

Global Retail Report Tracks Shifts in Global Retail Market

Market Review by CB Richard Ellis

KAMENSKAYA & PARTNERS Law Firm Presentation

3June 25, 2010

Place Country % of global

retailers

Place 2009

Change

11 Kuwait 41% 12 1

12 Russia 41% 11 -1

13 Japan 39% 12 -1

14 Singapore 38% 14 -

15 Belgium 37% 17 2

Compared to 2009, Russia stepped one point down from 12th to 11th place (with 41% global retailers currently present).

KAMENSKAYA & PARTNERS Law Firm Presentation

Other CIS states are not found among the listed top-20 countries

4June 25, 2010

In the city rating, Moscow climbed up two steps in 2010 (from 10th to 8th position) with 40% of global retailers operating in the Russian capital.

Moscow is one of the three most attractive cities in Europe yielding only to London (56% of global retailers) and Paris (46%)

Moscow climbs up chasing London and Paris

KAMENSKAYA & PARTNERS Law Firm Presentation

Russian retailers break into world’s top 250, according to Deloitte study

• Dr. Ira Kalish, Deloitte Research’s Consumer Business Director: “This is an exciting time for global retailing.

• “There is evidence of consolidation and modernization in emerging markets that we expect to continue in the coming years.

• “Traditionally, foreign retailers have dominated in markets such as Russia and China, but the strategies behind the emergence of these new stores reflect a growing maturity among emerging market businesses.”

5June 25, 2010 KAMENSKAYA & PARTNERS Law Firm Presentation

CIS Retail Chains: expansion is coming…

June 25, 2010 6

Russian retailers expand across CIS

KAMENSKAYA & PARTNERS Law Firm Presentation

Common Economic Space: Russia, Belarus and Kazakhstan

• Igor Shuvalov, Russian First Deputy Prime Minister: “Russia is still characterized by very strong monopolies, such as Russian Railways, Gazprom, and pipeline companies. The country's economy is suffering not from the mere existence of monopolies, however, but from a lack of competition.”

• Shuvalov noted that the federal and regional programs on the development of competition were currently being drafted.

• First Deputy PM stressed that Russia was poised to make its antitrust legislation and competition policy consistent with that of European countries in light of the creation of the common economic space of Russia, Belarus and Kazakhstan.

June 25, 2010 7KAMENSKAYA & PARTNERS Law Firm Presentation

Interstate Council for Antimonopoly Policy (ICAP)

• ICAP was established in 1993 with the purpose of coordination of the CIS Countries' activity on creation of legal and organizational foundations for prevention, limitation and suppression of monopolistic practices and unfair competition

• The Treaty defines the objectives of the antimonopoly authorities on the ensuring of close cooperation in the field of competition policy and sets forth the most important definitions as well as the general rules of competition related to:

- abuse of dominant position;- integration of economic entities;- restrictive agreements;- unfair competition.

June 25, 2010 8KAMENSKAYA & PARTNERS Law Firm Presentation

Interstate Council for Antimonopoly Policy (ICAP)

• ICAP currently incorporates includes representatives of 11 CIS Member States:

Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kirghizstan, Moldova, Russia, Tajikistan, Uzbekistan and Ukraine.

• The sessions of the Council are regularly held twice a year

June 25, 2010 9KAMENSKAYA & PARTNERS Law Firm Presentation

ICAP: development milestones

• 2000-2003 – the Treaty ratified by all the ICAP member states (Georgia withdrew from the CIS in 2009 but remained part of the Treaty)

• 2006 – Joint Antitrust Investigation Headquarters (JAIH) founded by the CIS member states

• 2009 – JAIH was reinforced by two additional divisions:

- CIS retail markets investigations division

- CIS pharmaceuticals markets investigations division 10June 25, 2010

ICAP: Key aspects of interaction between the member-states

1. Requests for information related to business activities of legal entities undergoing investigation

2. Consultations aimed at minimizing chances of potential conflicts and maximizing mutually acceptable solution opportunities

3. Notifications about initiated investigations (sent to antitrust authorities of involved states)

4. Evaluating opportunities to apply national legislative acts to investigated cases

5. Providing updates on cases in progress in the ICAP member-sates

11June 25, 2010

European approach

• In Poland and Germany retailers are banned by the government from working on weekends.

• In France retail trade is regulated by a special law known as Le Loi Galland (1997) that has limited the size of stores opening in small towns to support small vendors.

• In the UK the final version of the Retail Code was adopted 1n 2009 to introduce regulations applied to retailers with annual sales over 1 billion pounds

12June 25, 2010 KAMENSKAYA & PARTNERS Law Firm Presentation

Despite serious challenges such as:

• Ongoing recession, • Unstable capital markets • Growing energy costs and excessive

regulatory measures• Unfair competition --

-- 76 percent of Russian top managers strongly believe that their businesses will deliver increased revenues quite shortly.

13June 25, 2010 KAMENSKAYA & PARTNERS Law Firm Presentation

Contacts:1-a Semenovskaya Sq, Sokolinaya Gora Business Centre, Moscow, 107023, Russian Federation

Telephone: +7 (495) 72-939-72Fax: +7 (495) 620-49-72URL: www. kplf.netURL: www. kplc.ru

E-mail: kplc@kplf.net

14KAMENSKAYA & PARTNERS Law Firm Presentation June 24, 2010