COMPOSICIÓN NUTRICIONAL

Legal proceedings. From time to time and in the normal course of business, claims against the Group are received. On the basis of its own estimates and internal professional advice the Management is of the opinion that no material losses will be incurred in respect of the claims. During the year ended 31 December 2014 the Group recognized provision in the consolidated statement of profit or loss in the amount of RR 0.8 billion (for the year ended 31 December 2013: 0.1 billion) for the claims on which the Group expects cash outflows in the amount of RR 1.6 billion (31 December 2013: 0.8 billion).

Tax legislation. Russian tax, currency and customs legislation as currently in effect is vaguely drafted and is subject to varying interpretations, selective and inconsistent application and changes, which can occur frequently, at short notice and may apply retrospectively. Management's interpretation of such legislation as applied to the transactions and activity of the Group may be challenged by the relevant regional and federal authorities. It is therefore possible that transactions and activities of the Group that have not been challenged in the past may be challenged. As a result, additional taxes, penalties and interest may be assessed by the relevant authorities. As at 31 December 2014 management believes that its interpretation of the relevant legislation is appropriate and that the Bank’s tax, currency and customs positions will be sustained.

Starting 2012 the Group has developed and introduced methodology of compliance with the Russian transfer pricing legislation which was applied by the Group with respect to “controlled” transactions in 2014. Deviation of prices applied by the Group in certain “controlled” transactions from market prices calculated in accordance with the Russian transfer pricing rules resulted in accrual by the Group of additional tax liabilities which amount in 2014 does not have material effect on these consolidated financial statements.

Federal law No. 376-FZ dated 24 November 2014 (widely known as “controlled foreign companies” law) introduced in the Russian tax legislation the concept of “controlled foreign companies” and rules for taxation of their profit in the Russian Federation. The adoption of this law generally leads to an increase in the administrative and in several cases tax burden for the Russian entities that have subsidiary structures incorporated outside the Russian Federation.

The Group operates in various foreign jurisdictions and includes, inter alia, subsidiary companies and banks incorporated in Belarus, Ukraine, Kazakhstan, Turkey, Switzerland, Austria, Hungary, Croatia, Slovenia, Serbia, Slovakia, Czech Republic, Bosnia and Herzegovina and other countries.

No assurance can currently be given as to the possible impact of new rules introduced by the Law № 376-FZ on the Group’s tax obligations. At the same time profit of foreign subsidiary banks incorporated in countries which have valid double taxation agreements with the Russian Federation and support the exchange of information with the Russian tax authorities for tax purposes should not be taxed in the Russian Federation. Moreover, there should be no actual impact of the rules introduced by the Law № 376-FZ on the financial results of the Group in 2014 due to the fact that additional tax liabilities arising under these new rules (if any) will be reflected in future reporting periods.

Сapital expenditure commitments. As at 31 December 2014 the Group had contractual capital expenditure commitments in respect of premises and equipment totaling RR 5.4 billion (31 December 2013: RR 13.9 billion) and in respect of computer equipment acquisition of RR 18.3 billion (31 December 2013: RR 9.2 billion). The Group has already allocated the necessary resources in respect of these commitments. The Group believes that future net income and funding will be sufficient to cover these and any similar commitments.

Notes to the Consolidated Financial Statements – 31 December 2014

34 Contingencies and Commitments (Continued)

Operating lease commitments. When the Group is the lessee, the future minimum lease payments under operating leases, both cancellable and non-cancellable, are as follows:

31 December 2014

31 December 2013

In billions of Russian Roubles

Lease payments under cancellable operating lease Lease payments under non- cancellable operating lease Lease payments under cancellable operating lease Lease payments under non- cancellable operating lease

Not later than 1 year 17.0 3.3 13.2 1.8

Later than 1 year and not later than 5

years 55.7 15.6 29.7 5.5

Later than 5 years 46.0 24.9 29.2 4.2

Total operating lease commitments 118.7 43.8 72.1 11.5

Credit related commitments. The primary purpose of credit related commitments instruments is to ensure that funds are available to a customer when required. Guarantees and standby letters of credit, which represent irrevocable assurances that the Group will make payments in the event that a customer cannot meet the obligations to third parties, carry the same credit risk as loans. Documentary and commercial letters of credit, which are written undertakings by the Group on behalf of a customer authorizing a third party to draw drafts on the Group up to a stipulated amount under specific terms and conditions, are collateralized by the underlying shipments of goods to which they relate or cash deposits and therefore carry less risk than direct lending.

Commitments to extend credit represent unused portions of authorizations to extend credit. With respect to credit risk on commitments to extend credit, the Group is potentially exposed to a loss equal to the total amount of unused commitments. However, the likely amount of loss is less than the total unused commitments since most commitments to extend credit are contingent upon customers maintaining specific credit standards. The Group monitors the maturities of credit related commitments because longer-term commitments generally have a greater degree of credit risk than shorter-term commitments.

Outstanding credit related commitments are as follows:

in billions of Russian Roubles

31 December 2014

31 December 2013

Guarantees issued 1,951.7 1,362.4

Commitments to extend credit 1,710.8 1,477.8

Undrawn credit lines 820.3 545.7

Export letters of credit 541.9 399.5

Import letters of credit and letters of credit for domestic settlements 250.7 226.9

Total credit related commitments before provision 5,275.4 4,012.3

Provision (9.3) (2.1)

Total credit related commitments after provision 5,266.1 4,010.2

At 31 December 2014 included in Due to corporate customers are deposits of RR 118.3 billion (31 December 2013: RR 107.7 billion) held as collateral for irrevocable commitments under import letters of credit. Refer to Note 18. The total outstanding contractual amount of undrawn credit lines, letters of credit and guarantees does not necessarily represent future cash payments, as these financial instruments may expire or terminate without any payments being made.

Notes to the Consolidated Financial Statements – 31 December 2014

34 Contingencies and Commitments (Continued)

The analyses of provision for impairment of credit related commitments for the year ended 31 December 2014 and 31 December 2013 is presented below:

in billions of Russian Roubles 2014 2013

Provision for impairment as at 1 January 2.1 2.0

Net provision charge during the year 5.9 0.6

Foreign currencies translation 1.3 (0.5)

Provision for impairment as at 31 December 9.3 2.1

Assets under management. As at 31 December 2014 and 31 December 2013 several asset management companies of the Group were managing assets of various investment entities. The net value of such assets was as follows:

In billions of Russian Roubles

31 December 2014

31 December 2013

Pension funds and insurance companies 60.6 90.7

Designated funds 39.6 3.9

Mutual investment funds 27.7 25.3

Individual 7.5 8.9

Venture funds 2.0 2.6

Hedge funds — 5.2

Other 5.0 6.2

Total 142.4 142.8