Dear Clients and Partners,

We are glad to welcome you on the official corporate web-site of Petersburg Social Commercial Bank OJSC!

Please find enclosed an introduction and brief information about Russia-based Petersburg Social Commercial Bank OJSC (St. Petersburg).

Petersburg Social Commercial Bank, OJSC (hereinafter, PSCB) was registered on October 29, 1993 - General License of the Central Bank of the Russian Federation №2551 of May 25, 2006. PSCB has been a participant of the Deposits Insurance System since 18th November 2004. The Bank performs the whole range of banking transactions in Russian Rubles (RUR) and foreign currency in St. Petersburg and Moscow, providing services to private and corporate customers.

PSCB is a universal commercial bank carrying out business activities primarily in St. Petersburg and Moscow, Russia (head-office is located in the historical center of St. Petersburg). Our Bank has 5 branches in St. Petersburg and 1 in Moscow. PSCB has been an official participant of two international programs of the International Finance Corporation (IFC), the World Bank Group: 'Russia Banking Sector Corporate Governance Project' (web-site: http://www.ifc.org-/ifcext/rbcgp.nsf/Content/Home) in 2005-2006 and 'Russia Primary Mortgage Market Development Project' (web-site: http://www.ifc.org/russia/mortgage) in 2006-2009.

ZAO PricewaterhouseCoopers Audit - Russian Practice of PricewaterhouseCoopers has been the official auditor of PSCB as per the Russian Accounting Standards (RAS) and International Financial Reporting Standards (IFRS) since 2003. PSCB obtains national and international ratings assigned by Fitch Ratings Ltd since 2006 (first ratings were assigned on 27 April 2006) and by Moody’s Investors Service Inc. since 2008 (first ratings were assigned on the 22nd August 2008).

On 14 September 2007, RenFin Fund, investment fund of the company Renaissance Investment Management (international investment-banking group Renaissance Group) acquired 20% of voting shares of Petersburg Social Commercial Bank, OJSC minus 1 share from its present shareholders.

PSCB has become the first bank in St. Petersburg that attracted an international financial investor into its equity. Mr. Sergey Nazarov, represents RenFin Fund in the Board of Directors of PSCB. Mr. Nazarov noted that participation in the equity of the Bank is a very interesting acquisition for the Fund. “The Bank shows a good growth potential based on professional team of managers and clear development strategy. Signing the deal was preceded by extensive Financial and Legal Due Diligence of the Bank, the results of which fully satisfied us.” Mr. Nazarov remarked as well that “a transparent structure of the Bank owners and its informational openness testifies to high standards of corporate governance adopted in the Bank.”

Participation of RenFin Fund – private equity fund of Renaissance Group in the equity of PSCB is a very significant and important event for our Bank as Renaissance Group and its subsidiary – Renaissance Investment Management (RIM) are well-known first-class investors in the Russian banking sector and international financial markets.

As explained by Mr. Nikolay Alekseev, Deputy Chairman of the Management Board, Director of International Business Development and Foreign Investments of PSCB, the Bank is highly interested in attracting credit facilities and developing relationships with foreign banks-partners and international companies active in Russia, in various fields of business, including:

• Direct loans from foreign partners for developing PSCB’s SME loan portfolio and mid/-long-term financing of our Russian corporate customers,
• Short- and Mid-term credit facilities for supporting our Bank’s customers foreign trade business, i.e. financing transactions of the Russian importers and exporters ,
• Attracting direct equity and long-term trade/debt finance from international financial institutions and other foreign counterparts (including – raising subordinated loans convertible into equity),
• Arranging syndicated loans in USD/ EUR and RUR (as well as in other currencies),
• Development of long-term cooperation with foreign banking groups, and participation of PSCB as an official bank-partner in specialized programs of international financial organizations active in Russia in the field of Global Trade Facilitation and Trade Finance, Leasing Transactions, and SMEs business development, etc. (including, technical assistance programs),
• Establishing business relations with potential strategic investors, interested in developing long-term business presence in Russia via strategic partnership with PSCB.

PSCB's Business Development Strategy for the period 2007-2011 approved by the Board of Directors in May 2008 stipulates strengthening of the Bank’s positions in the Russian North-West financial services market, further growth of the market share, especially in St. Petersburg and Leningrad region (to join Top-10 banks of the North-West of Russia by the end of 2011). Therefore, PSCB is very interested in intensifying our talks with potential foreign investors and lenders for raising debt and equity financing in order to strengthen our positions both in PSCB's corporate and in retail business, and to achieve the tasks set in the Bank's Business Development Strategy for the period 2007-2011. Please note that PSCB launched its global trade finance business successfully and received blank credit facilities for short-term trade finance services and documentary operations with the following foreign banks: Commerzbank AG (Germany), VTB Bank (Deutschland) AG, LHB Internationale Handelsbank AG ( Germany), Raiffeisen Zentralbank Osterreich AG (Austria), Oberbank AG ( Austria). From 01 January 2008 till 31 Decemmber 2008, total amount of global trade finance transactions exceeded USD 10 Million. We have also been developing our export financial projects with the following banks-partners – IKB Deutsche Industriebank AG (Germany), UPS Capital Business Credit (USA), WorldBusiness Capital, Inc. (USA) and other institutions. In February 2007 PSCB signed a Framework Loan Agreement with its German partner AKA Export Finance Bank - under the Agreement PSCB and AKA Export Finance Bank (a specialized German bank for export financing) jointly grants medium-term special purpose loans covered by the German Export Credit Agency Euler Hermes Kreditversicherungs-AG both in US dollars and EURO to the Russian importers.

On 26 November 2007, PSCB signed an Agreement with the U.S. bank-partner – UPS Capital Business Credit for financing import of U.S. goods and equipment secured by the Export-Import Bank of the United States of America (Ex-Im Bank of the USA). UPS Capital Business Credit and PSCB, in accordance with the signed Agreement, intend to provide mid-term special loans secured by the U.S. export credit agency - the Export-Import Bank of the United States of America in USD (for purchase of U.S. made goods and equipment) to Russian importers. Credit Facility amounts in total USD 5,000,000 under the Agreement between UPS Capital Business Credit and PSCB.

The international rating agency Fitch Ratings Ltd. upgraded international and national ratings of Petersburg Social Commercial Bank (PSCB) on 25 June 2008 as follows: Foreign currency Issuer Default Rating (IDR) upgraded to 'B-' from 'CCC'; Short-term IDR upgraded to 'B' from 'C'; National rating upgraded to ‘BB-’ from ‘B’. The Outlooks for the Long-term IDR and National Long-term rating remain Stable. In addition, Fitch Ratings Ltd. has affirmed the other ratings of PSCB. Upgrade of the international and national ratings of PSCB contributes to improvement of transparency and openness of the Bank towards foreign and the Russian investors, intensification of the Bank’s international business connections and raise of long-term funding and credit facilities from foreign lenders at more favorable conditions, and this also evidences increase of the Bank’s reliability.

On 22 August 2008, the international rating agency Moody's Investors Service has assigned the following global and national scale credit ratings to Petersburg Social Commercial Bank OJSC: B3 long-term and Not Prime short-term foreign and local currency deposit ratings and an E+ bank financial strength rating (BFSR). The outlook for all ratings is stable. At the same time, Moody's Interfax Rating Agency has assigned a Baa3.ru long-term national scale credit rating (NSR) to PSCB. Moscow-based Moody's Interfax is majority-owned by Moody's, a leading global rating agency.

We are pleased to inform you that the Central Bank of the Russian Federation (CB RF) has included our Bank - Petersburg Social Commercial Bank, OJSC into the List of Russian Banks having the right to receive loans in RUR without any collateral. Further, we would like to inform you officially that the CB RF has established a credit limit for PSCB amounting in total RUR 1.197 Bln (approximately USD 33 Mln). The loans can be taken without any collateral in RUR for the maximum period up to 3 months, and the most essential terms & conditions of this financial instrument are described in the Provision of the CB RF (Bank of Russia) No. 323-P ‘On Granting Loans without Collateral to the Russian Credit Organizations by the Central Bank of the Russian Federation’ of 16 October 2008 approved by the Board of Directors of the CB RF.

Thus, PSCB is one of the 8 banks in St. Petersburg (of 42 commercial banks having its head-quarters in St. Petersburg) that have received these preferential funding sources (and one of 116 Russian commercial banks eligible for funding from the side of the CB RF). The fact that our Bank is eligible for receiving loans without collateral from the CB RF affirms reliability of our Bank and long-lasting successful track-record of PSCB in Russian banking sector.

It should be noted that PSCB, as one of its strategic tasks, intends to develop partner relationships with foreign banks-partners for co-financing of target programs and some customers of the Bank, as well as to take part as an official bank-partner in the specialized projects and programs of international financial institutions in Russia, including – potential raise of debt and equity finance. Besides, PSCB is highly interested in strengthening our bank-to-bank business, attracting credit facilities and developing relationships with foreign banks-partners and financial companies active in Russia, and interested in doing business in the fast growing banking market.

We look forward to establishing and developing our beneficial business co-operation in 2009, and wish you a lot of success.

Sincerely yours,
Vladimir Pribytkin
Chairman of the Board of Directors
Petersburg Social Commercial Bank


Nikolay Alekseev
Deputy Chairman of Management Board
Director of International Business Development and Foreign Investments
Petersburg Social Commercial Bank, OJSC
Tel/Fax: +7 (812) 332 3174
Cell: +7 (921) 942 9771
E-mail: nalekseev@pscb.ru
www.pscb.ru


Petersburg Social Commercial Bank, OJSC
25 Tsvetochnaya Street
St. Petersburg, 196084
Russia