Moscow, Russia - May 7, 2014 - Sistema JSFC ("Sistema") (LSE: SSA), the largest publicly-traded diversified holding company in Russia and the CIS, today announces the completion of the reorganisation of Sistema-Invest CJSC ("Sistema-Invest") and the elimination of the cross ownership structure of Bashneft OJSC ("Bashneft").

As a result of the reorganisation, Sistema's share in Sistema-Invest has risen to 100%. In turn, Sistema-Invest now owns 12.6% of Bashneft's ordinary shares (10.7% of charter capital).   

Sistema's direct share in Bashneft's voting shares totals 71.8% (63.2% of charter capital). 

The Sistema Group's aggregate share in Bashneft's voting shares is now 86.7%. The share of Sistema's effective ownership in Bashneft's capital is now 78.8%. 

Respective changes to the charters of Sistema's subsidiaries involved in the reorganisation shall be registered with the tax authorities. 

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For further information, please visit www.sistema.com or contact: 

Investor Relations Evgeniy Chuikov Tel.: +7 (495) 692 1100 ir@sistema.ru

Public Relations Ekaterina Tsukanova Tel.: +7 (495) 228 15 36 pr@sistema.ru