Sale (export) of Precious Metals on Customer's Instructions

Exporting customer-owned precious metals and further operations on customers' instructions under commission agreement

Acting in its own name and at the expense of the customer, VTB can export customer-owned precious metals.

Operations are carried out with fine gold and silver in standard bullions.

Both subsoil users and other Russian legal entities owning precious metals may act as customers.

Exported metals are credited to impersonal metal accounts (under Loco London terms) opened for the customer with VTB, then VTB on the customer's instructions carries out operations with precious metals in international markets in accordance with account balance.

Minimum term of export and sale after VTB receives the customer's (refinery) confirmation that a metal batch is ready and such metal is credited to impersonal account is 5 o 15 business days.

Exported metal must be sold in full within 3 months after the export date.

Export and further operations are carried out on the basis of a commission agreement concluded between VTB and the customer. Agreements for opening impersonal metal accounts under Loco Moscow and Loco London are concluded simultaneously with commission agreement.

Settlement currency is marketable currency (usually, US dollars).

Foreign currency proceeds are credited to the customer's account.

On the customer's instruction, VTB may in part or in full convert proceeds into Russian rubles.

Key benefits and advantages:

• VTB's superior reliability among Russian commercial banks, which essentially eliminates customer risks;
• VTB's extensive experience in conducting operations and a wide network of counteragents, which ensures lower customer expenses on sales of precious metals and increases its efficiency;
• highly competitive price terms;
• possibility for the customer to receive proceeds in marketable currencies and improve the efficiency of metal sales by carrying out derivative operations with them;
• the Bank offers subsoil users to cover the cost of precious metal refining and processing; and
• possibility to accept customer's metal directly from its depository (in case of subsoil users, from refinery depository).

Other Customer Operations

• carrying out instructions of the Russian government on export and sales of gold from the State Depository for Precious Metals and Gems in the foreign market;
• carrying out orders of Russian subsoil users and banks on export and/or sale of gold in the foreign market, including customer acquisition;
• provision of purchase/sell precious metals quotations, including impersonal metal accounts, to customers;
• entering into agreements with foreign gold buyers, including industrial end-users.