JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on February 27, 2015.

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The Board of Directors approved bilateral agreements between RusHydro and Inter RAO for sale and purchase of electricity on the territories of the Russian Federation located in non-price zones of the wholesale market in regard to the Bureyskaya and Zeyskaya HPPs, qualified as an interested party transaction.

These agreements provide for supply of electricity generated by hydropower plants in excess of balance. Total amount of electricity supplies under these agreements will not exceed 2,400,000 MW.

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The Board of Directors approved the addendum to the agreement between RusHydro and Moscow Power Engineering Institute signed in 2013 for R&D and technological works aimed at reliability improvement of hydro turbines.

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The Board of Directors approved the agreement between RusHydro and SO UES, qualified as an interested party transaction.

According to the agreement RusHydro will control the reactive capacity without electricity production using generating facilities of the Volzhskaya, Ezminskaya, Gizeldonskaya, Zelenchugskaya HPPs and Zagorskaya pumped storage plant.

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The Board of Directors approved an agreement for sale and purchase of shares between RusHydro and Sulak HydroCascade, qualified as an interested party transaction.

According to the agreement Sulak HydroCascade will transfer to RusHydro up to 1,393,100,000 ordinary shares to be placed through a private subscription in accordance with the decision on additional issue of shares registered by the Bank of Russia on February 5, 2015. The price of placement amounts to RUB 1 per share, RusHydro pays for these shares in cash.

SC Sulak HydroCascade (wholly owned by RusHydro) constructs the Gotsatlinskaya HPP with the installed capacity of 100 MW.

The Board of Directors approved the additional contribution of funds to share capital of Small HPPs of Stavropolye and Karachaevo-Cherkessia LLC, qualified as an interested party transaction.

The amount of contributed funds will not exceed RUB 912,760,000 (free of VAT). Par value of RusHydro share in the company increases by the amount of contributed funds. The funds will be contributed within 12 months from the date of decision on increase of share capital of Small HPPs of Stavropolye and Karachaevo-Cherkessia LLC.

RusHydro acquires the shares in order to finance the investment projects on construction of new generating facilities.

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The Board of Directors approved the first part of decision on RusHydro’s securities issue (Bond Program) and the Prospectus for non-convertible interest-bearing documentary bonds with mandatory centralized custody with total par value of RUB 200 bn maturing in 20 years or on the 7,280th day from the date of placement. The bonds are to be placed through an open subscription.

Approval of documents for securities issue doesn’t mean the start of placement. The Company will determine conditions (terms and amount) of bonds issues depending on the current market situation. Registration of Bond Program will allow RusHydro to accelerate the placement process.

The information on other decisions of the Board will be disclosed in compliance with regulatory requirements.