OREANDA-NEWS. September 16, 2009. JSC VTB Bank hereby announces the completion of its previously announced offering (the "Offering") of the Bank’s ordinary registered shares with a par value of 0.01 roubles per share, reported the press-centre of VTB Bank.

The Bank completed its share placement among shareholders having pre-emptive rights. The pre-emptive rights placement resulted in 796 of VTB shareholders purchasing 3,735,146,982,583 (three trillion seven hundred and thirty-five billion one hundred and forty-six million nine hundred and eighty-two thousand five hundred and eighty-three) shares and today, VTB announces that an additional 1,255,845,736 shares were placed in the open subscription portion of the Offering. Shares were placed both in the form of shares and in the form of global depositary receipts ("GDRs"), one GDR represents 2,000 shares.

Pursuant to a previously announced decision of VTB Bank Supervisory Council, the price of a share both for the Bank’s shareholders having pre-emptive rights, and those participating in the open subscription was set at 4.82 kopecks per share.

NOTICE REGARDING THE REGISTRATION OF THE PLACEMENT REPORT
Under Russian law, the placement of the newly issued shares, some of which were placed in the form of GDRs, is subject to VTB`s registration of a report on VTB Bank’s additional share placement (the "Placement Report") with the Central Bank of Russia (the "CBR"). Russian law requires that VTB file the Placement Report within 30 days following completion of the Offering. VTB intends to file the Placement Report as soon as practicable following completion of the Offering. The CBR is statutorily required to make its decision within two weeks after VTB files the Placement Report, but it may take longer in practice or the registration of the Placement Report may not occur at all.

If the Placement Report is not registered by the CBR within 75 calendar days after the closing date of the Offering (the "Closing Date"), VTB will issue a press release and notify shareholders, the GDR Depositary and the London Stock Exchange. Under Russian law, if the Placement Report is not registered, VTB will be required to return the full amount of proceeds that were initially deposited into VTB`s account on the Closing Date.

The Depositary will promptly distribute through DTC, Euroclear and Clearstream, as applicable, the funds it has received to the holders of the GDRs after deduction of any applicable fees, taxes, expenses and foreign currency conversion losses, upon surrender of the GDRs. The return of funds may be delayed due to Russian currency control, banking and securities regulations or practices and may be prevented if there is a change in such regulations or practices. In addition, the holders of the GDRs will be taking a credit risk on VTB and the Depositary for the return of funds in the event that the Placement Report is not registered.

Until the registration of the Placement Report, (i) the shares are not transferable and will not trade on the Russian stock exchanges, (ii) all GDRs will be issued on a provisional basis and (iii) holders of GDRs will not be entitled to instruct the Depositary to exercise any voting rights on their behalf, and neither the Depositary nor the Custodian will exercise any voting rights as a shareholder. Holders of GDRs may not withdraw the shares or other property on deposit with the Depositary in respect of the GDRs sold in the Offering prior to the registration of the Placement Report. Such limitation on withdrawal and voting of the Shares will not prohibit trading in the GDRs on the Main Market of the London Stock Exchange, but the GDRs will not be eligible for trading on PORTAL Market, a subsidiary of the Nasdaq Stock Market, Inc. prior to the registration of the Placement Report, at which time such GDRs shall no longer be deemed to be issued on a provisional basis.