annual report 2005 eng

Annual Report 2005

WWW.VBANK.RU

In many ways, our bank was extremely successful throughout 2005. First of all, I want to point out that the bank’s financial results for the year were outstanding. According to Russian Accounting Standards, our assets grew by 60%, to RUR 49 billion, our profits increased by 180% to RUR 891 million, and our capital increased by 27% to RUR 4,165 million.

These financial results reflect our effective management of the capital that shareholders have entrusted to the bank. However, the bank’s success is measured by more than just financial results. Our real achievement is the development of our personal relationships with clients and their trust in us. Our strategy is aimed at providing service to our clients, promoting the development of their business and helping them change their lives for the better, and above all, supporting them in both good times and bad.

On 12 April 2006 we celebrated the 15th anniversary of our bank. The bank has been through some difficult years, but they were years that were both dynamic and interesting. Working closely with our clients, we have lived through the numerous changes that Russia and its banking system have undergone in recent years. And we have never broken our banker’s word of honour to our clients. We have ensured that our bank has operated smoothly in times of crisis and, above all, we have preserved and increased the size of financial resources our clients have entrusted to us.

Our relationships with clients are our bank’s most precious asset. This is the key factor in our approach to the banking business. So it was natural that the idea of building client relations on the principles of responsiveness, humanity and dependability became central to the bank’s rebranding project, which is now being implemented. We should like to stress that Vozrozhdenie Bank is «a bank that is always with you» in both good times and bad.

We want our banking products and services to be understood by our clients, to meet their needs, and to be useful in their daily lives and work. My colleagues and I have a true interest in our clients’ well being. We work with our longstanding, loyal clients to reach even greater business success. With new clients, we strive for a real understanding of their businesses and banking needs. We have a common interest in our clients’ success!

Unfortunately, we cannot tell you about all of our over 850,000 retail clients and over 40,000 corporate clients. But I am proud to present in this annual report a portrait gallery of some of the clients of Vozrozhdenie Bank and their impressions of working with us.

The bank is expanding rapidly. This has been especially true in the retail area where products we introduced only two years ago have been exceptionally popular. Consumer loans, car loans and debit and credit cards help individuals improve their lives. I am especially pleased that Vozrozhdenie was one of the 10 largest issuers of new mortgages last year. Buying a new apartment is a major financial decision for people and we are pleased to help in this important step.

Belief in our professionalism led to a dramatic increase, 66%, in the financial resources entrusted to the bank by corporate and retail clients in 2005. Thanks to rapid expansion into regions of Russia that are strategically important for our business, the bank’s credit portfolio has become even more diversified. The past year has seen the bank’s network expand to 138 branches. We have added 20 new branches to service retail and corporate clients. Another important priority is to increase the number of the bank’s ATMs and upgrade the existing ones. By the end of last year we added 87 ATMs to our network, which now has 401 ATMs.

If it hadn’t been for the well coordinated and highly professional work of our more than 5,000 employees, none of these achievements would have been possible. I thank them from the bottom of my heart! Relations within our team are based on true partnership, trust, and respect. That’s the only way we can promote our relations with clients on the basis of responsiveness, humanity and dependability.

Yours sincerely,

Dmitry OrlovPresident, Vozrozhdenie Bank

Address of the president

Dear shareholders, friends and colleagues!

Address of the president 3

Our bank 7

Key financial highlights 11

15 years of partnership 17

• Corporate business 17

• Retail business 20

Transactions on financial markets 24

Banking technologies 24

Human resource management 25

The bank’s social mission 25

Prospects for the bank’s development in 2006 27

Corporate governance 29

Capital and dividends 35

Financial statements 41

• Independent auditors report 41

• Financial statement under International Financial Reporting Standards (IFRS) 42

• Management Commentary on IFRS Financial Results 46

• Financial statement under Russian Accounting Standards (RAS) 48

Risk management 53

Background information 59

• Bank’s branches and offices 60

Contents

Vozrozhdenie Bank provides personal banking and business services to clients throughout the Russian Federation. Our nationwide network includes 138 locations and over 400 ATMs. We provide 900,000 clients with a range of services, from savings accounts, payment handling and payroll management to mortgages, bank cards and business and consumer loans.

Vozrozhdenie Bank has been a part of Russian life and culture for many years. Today the bank combines the best of the stability and banking traditions of the past with the most up-to-date banking products, services and systems. We are celebrating our 15 year anniversary in 2006.

Our values

We believe that close relationships with our clients are our most valuable assets. We work in true partnership with our clients. We are responsive, human and dependable, the bank our clients rely on in good and bad times. This closeness to our clients sets us apart, today and in the future

In April 2006 Vozrozhdenie Bank launched a rebranding campaign. This rebranding has affected not only the «look» of the bank but also our positioning strategy on the Russian banking services market and the roles of marketing and communications within our structure. The bank’s management is confident that the rebranding exercise will help give brand a distinctive «feel», improve its recognisability, increase loyalty among existing clients, and boost the process of acquiring new clients.

Vozrozhdenie Bank is one of the largest financial institutions in Russia. Our reputation, quality of service and scope of activities are helping us to retain a leading position on the market. However, in the face of ever increasing competition from Russian and foreign banks, the bank’s technology based competitive advantages are not sufficient in themselves to secure its further dynamic growth. It has been necessary to strengthen our corporate positioning, and to select and shape a unique «value based offer» that would clearly place the bank in a more favourable position vis-a-vis its competitors and that could be used to build up effective communications with our clients.

Our bank

Nikita Mikhalkov

National artist of RussiaGeneral manager of OOO Studio TRITE

Our friendly relationship with Vozrozhdenie Bank began more than ten years ago. The reputation of our Studio, TRITE, is built on such fundamental concepts as creativity, fellowship and hard work. Vozrozhdenie Bank has more than once displayed an attitude to joint projects that proves that it shares this approach to work and partnership, in the broad

sense of the word. The supreme professionalism of the bank’s specialists goes hand in hand with sensitivity, cordiality, and reliability. I hope that our professional relationships and good friendship will last for many years to come.

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The creation of a «value based offer» was launched in the spring of 2005. The rebranding exercise was managed by the international consultancy firm Quadric, which has successfully carried out similar assignments for many global industry leaders. The bank and Quadric have jointly conducted a large scale study for the purposes of positioning Vozrozhdenie Bank.

The results of this study have shown that the unique asset of Vozrozhdenie Bank brand is our trust based relationship with our clients. This relationship therefore became the cornerstone of the bank’s «value based offer»: responsiveness, humanity and dependability — all the features of the bank that now set us apart from our competitors. The bank’s unique positioning on the market is based on the high quality of our relationships with clients.

Our bank

Stages of development

1991

Foundation of Vozrozhdenie Bank.

Central Bank registered Vozrozhdenie Bank with 34 branches in Moscow Oblast and Moscow City.

1992

Vozrozhdenie receives foreign exchange license from the Central Bank, joins Moscow Interbank Currency Exchange.

Shares listed on RTS.

1993

Further development of the branch network.

One of the largest in Russia cash collection and delivery service established.

1994

Vozrozhdenie joins S.W.I.F.T.

Correspondent banking network established with western banks.

1995

Joins VISA International as associate member.

1996

Recognized as a socially valuable credit organization and joins World Bank development programs.

1997

Vozrozhdenie’s shares trade in international markets as ADRs.

Begins cooperation with CIBС.

1998 Bank creates ATM network and establishes own processing center.

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We decided to revamp our logo in order to get in step with the latest trends in the sphere of visual communications, making it look more dynamic and comprehensive. A series of visuals has been developed, which are now being used in the bank’s marketing. The theme is nature, a symbol of honest personal relationships, productivity, stability and beauty.

2000 14th equity issue triples capital.

CIBC becomes a shareholder.

Europay International certifies processing center.

2001

10 years!

Vozrozhdenie among 20 largest banks in terms of corporate credit portfolio.

2002 ATM network largest in Moscow Oblast, 100,000th VISA card issued.

2003

Vozrozhdenie has third largest branch network and is among 200 largest Russian companies.

17th equity issue raises $33 million.

2004

Vozrozhdenie, 10th largest bank in terms of individual deposits, accepted into Deposit Insurance Program.

1999 Central Bank evaluates Vozrozhdenie as a stable bank.

2005

Bank a top 3 participant in Government Housing Finance program, 9th largest issuer of retail mortgages.

Rated by Standard & Poor’s as most transparent bank in Russia.

2006

15 years!

Network of 138 offices, over 400 ATMs serves more than 900,000 clients.

Leading rankings

The Central Bank of the Russian Federation has consistently ranked Vozrozhdenie Bank among the leading banks of Russia:

(sources: Interfax, RusBusinessConsulting and magazines «Profile», «CredCard», «Expert», «Kommersant Dengi».)

Category Rank

Number of branches 4

Business with plastic cards 6

Mortgage volume 9

Individual deposits 10

Corporate accounts 18

Corporate loans 24

Total assets 25

10

Strong positions

• Present in 19 regions

• 138 locations

• Over 400 ATMs

• Over 850,000 retail clients

• Over 40,000 corporate clients

Our bank

Solid ratings

• The bank has always been included among the most trustworthy Moscow banks by the independent agency «Rating».

• NAUFOR, the National Association of Securities Dealers, ranks Vozrozhdenie Bank among the ‘A’ group of most reliable

counterparties.

The bank has commissioned creditworthiness ratings from Moody’s Investors Service and their Russian affiliate, Moody’s

Interfax Rating Agency:

• Moody’s Investors Service - foreign currency deposit rating B1/NP, Financial Strength Rating E+.

• Moody’s Interfax Rating Agency – long-term national scale credit rating A1.ru.

As the bank’s international obligations are primarily trade finance related and the bank does not borrow internationally,

or issue long term bonds or debt obligations in foreign currencies, we have not commissioned ratings from other agencies.

Assets and loans

loansassetsloans/ assets, % (RHS)

number of employees (thousand)number of corporate clients (thousand)number of retail clients (hundreds of thousand)number of offices (RHS)

Development of branches network

Funds and loans

funds of corporate clientsloans to corporate clientsfunds of retail clientsloans to retail clientsprofit before taxes (RHS)

Key financial highlights

Industry breakdown of the loan portfolio 2005

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Key operational highlights (as at the end of the year)

2005 2004 2003

Clients

Number of legal entities 40,199 37,219 34,240

Number of retail clients 856,000 780,300 608,476

Remote access system

Number of clients using Client-Bank system 5,588 4,300 3,072

Bank cards

Bank cards issued, thousands 700 537 442

Number of acquiring clients 1,531 869 620

Number of employees 5,083 4,506 4,195

Network of branches

Number of offices, including branches, sub-branches, representative offices and cash outlets 138 121 112

ATM network

Number of ATM’s 401 303 250

Key financial highlights (IFRS)

2005 2004 2003

$/Russian rubles exchange rate 28.7900 27.7487 29.4545

Financial performance, IFRS

Net loans, million rubles 30,774 22,055 16,753

Total assets, million rubles 49,109 30,627 26,775

Equity, million rubles 3,273 2,604 2,160

Net profit, million rubles 544 461 89

Return

ROE, % 19% 19% 6%

ROA, % 1.36% 1.61% 0.41%

Shares

Earnings per common share, rubles 28 22 6

Dividends per common share, rubles 0.5 0.5 0.3

Market capitalization, $ million 650 126 62

Profit and equity

operating profitaverage equity

Loan portfolio and interest income

loans to retail clientsloans to corporate clientsinterest income (RHS)

Geographic breakdown of the loan portfolio

other regionsMoscow regionMoscow

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ROAAROAE

Customers’ funds and interest expenses

Return on assets and equity

funds of corporate clientsfunds of retail clientsinterest expenses (RHS)

Non-interest income

other non-interest revenuesecurities gainsFX gainsother fees & commissionsfees & commisions from cash operationsfees & commisions from operations withbank cards fees & commisions from settlement operations

15 years of partnership

Vozrozhdenie Bank – your partner in development.

Corporate business

Throughout the past 15 years Vozrozhdenie Bank has been providing financial services to corporate clients at the highest professional level. These years have seen the development of a wide range of banking products and services by the bank, which has always striven to be sensitive to the needs of its clients.

Our relationships with our clients are based on trust, communication, and mutual respect. Our longstanding unblemished reputation, financial capacity and individual approach to every client enable us to establish firm and long lasting partnership relations with entities and businesses. The number of our clients has increased every year. In 2005 this number grew by around 3,000 to 40,199.

Management of funds The bank offers its clients reliable and efficient services for management of their funds: collection services, the opening and management of current accounts, savings accounts and deposit accounts, the issuing of certificates of deposit and promissory notes, securities transactions, brokerage, and trust management. As at the start of 2006, the volume of funds placed by clients in current accounts and savings accounts, in the form of certificates of deposit and promissory notes, had grown by 1.7 times to RUR 19.3 billion.

Industry breakdown of customers’ funds*

administrationsindustrytradeconstructionfinanceagricultureother

* excluding certificates of deposit and promissory notes

Anatoliy Falin

General Director of JSC Gofron

Kashira, Moscow region

Enduring friendship lies at the very heart of our relationship with Vozrozhdenie Bank. This year we are celebrating our 15th anniversary, and so is Vozrozhdenie Bank. In the course of these fifteen years our enterprise has undergone massive restructuring, which was essential for the successful development of our business. Thanks to the

credit facility under the joint investment project arranged by Vozrozhdenie Bank and the World Bank, we were able to purchase Japanese equipment and meet our performance targets. We have complete trust in the reliability of our partnership with Vozrozhdenie Bank.


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Lending to businesses

The bank has been providing loans to businesses for 15 years, and this remains our primary activity. Our lending services help to create new opportunities for the development of our clients’ business. The wide variety of credit facilities on offer, ranging from overdrafts to investment loans, means that our clients can choose the facility that is right for them. In 2005 the bank started providing factoring services, and continued developing its financial leasing services. The bank’s specialists strive to put together lending packages that are tailored to each individual client.

During 2005, the corporate credit portfolio increased by 28%, to RUR 28.9 billion. The number of enterprises that received loans from Vozrozhdenie Bank has grown by 20% over the past year, and as of 1 January 2006 exceeded 2,000.

In 2005, the bank increased the total guarantee limit of its clients’ obligations to the customs authorities from €24 million to €40 million. Guarantees issued in the course of that year amount to RUR 2.3 billion.

In 2005 Vozrozhdenie Bank and the Federal State Strategic Reserve Agency signed a cooperation agreement. Within the framework of joint programmes, the bank has issued guarantees for RUR 405 million for the repayment of advanced sums and the performance of contracts by clients involved in delivering public contracts.

The bank is also active in extending subsidised loans, whereby the borrower receives a partial refund from the federal and regional budgets of the loan interest paid. In 2005, such loans amounted to around RUR 600 million.

Regional cooperation

Throughout the past 15 years the bank has cooperated with the administrations of Russian cities and regions. The bank has entered into long term agreements with many of them. In 2005, the bank issued loans to the administrations of Russian cities and regions amounting to over RUR 4.4 billion.

Despite the nationwide scale and plans for the bank’s development, Moscow Region accounts for about half of our business, which attests to the great importance of Moscow Region in our strategy. There are 95 branches and 235 ATMs in Moscow Region, and over 30,000 corporate clients.

In 2005 Vozrozhdenie Bank entered into a cooperation agreement with the Government of Moscow Region, effective until 2010. Various sectors of the regional economy have received RUR 67.9 billion in credit facilities extended, including over RUR 300 million allocated for the development of housing and utilities infrastructure.

Since 1997 Vozrozhdenie Bank has been an authorised bank of the Government of Moscow City. The bank has been successfully cooperating with the Moscow City Department of Food Supplies in implementing various programmes initiated by the Government of Moscow City. In 2005, guarantees issued to the enterprises involved in such programmes exceeded RUR 355 million.

Payment processing

Individual service, accuracy, and efficiency of settlements are the factors underlying the choice of more than 40,000 corporate

Payments through «Client-Bank» system

number of paymentselectronic payment proportion (RHS)

clients who use our settlement and collection services, corporate bank cards, services for the sale and purchase of major global currencies in exchange for Russian roubles, and services for the conversion of non-cash foreign currency as-sets. The bank has introduced special systems that speed up the processing of payment documents and help our clients manage their accounts and control fund transfers from their own offices.

The bank’s correspondent network helps us process clients’ settlements with any country of the world, and covers 63 Rus-sian and 97 foreign banks.

In 2005 the number of clients’ payments increased by 40% to over 32 million transactions, and the number of documentary transactions effected by the bank on behalf of its clients grew by 1.6 times.

Trade finance and international transactions

When the international agency Moody’s Investors Service in-creased the rating of Vozrozhdenie Bank in 2005, the bank saw new opportunities for raising funds on foreign markets. As at the start of 2006, the limits provided by foreign banks in respect of documentary transactions had increased by 1.7 times to USD 35 million. In 2005, the bank raised internationally twice the volume of funds to finance its clients’ export and import trans-actions as it did in 2004.

In 2005, the bank signed an agreement with the Swedish bank ForeningsSparbanken AB (Swedbank) providing for an export credit facility to be guaranteed by the Swedish export agency EKN. This helped bank’s clients finance the purchase of Scania commercial vehicles. The bank can finance imports of equip-ment originating from virtually any OECD country, through the long term credit facilities that are extended by foreign banks. The export insurance agencies of Austria, Germany, Poland, Czech Republic, Hungary, Italy, Luxemburg, Sweden, the USA and Taiwan have confirmed their readiness to insure the credit risks of foreign banks vis-a-vis Vozrozhdenie Bank. In 2005, the volume of export and import transactions accomplished by the bank’s clients amounted to RUR 48 billion.

Payroll services

Over 700,000 employees of 2,500 Russian enterprises received their salaries in 2005 using cards issued by Vozrozhdenie Bank. In Moscow Region, 1,500 entities and businesses use our payroll services.

The payroll services offered by Vozrozhdenie Bank have a number of advantages that are beneficial to businesses and their employees: reducing the expenses and labour costs related to the organisation and payment of salaries, reducing wasted working hours, and increasing the safety of funds held. The flexible scheme of tariff plans offered by the bank enables our clients to choose the most convenient program. Thanks to the advanced, easily accessible network of ATMs, employees can receive their salaries at a convenient location of their choosing. They also enjoy favourable terms for issuing of credit cards.

The increasing number of credit cards issued to the bank’s clients promotes development of acquiring services. By the start of 2006, the bank had signed contracts for acquiring services with 1,531 trade outlets to accept card transactions.

Services for holding and multi-branch companies

Thanks to the bank’s specific advantages, such as branches throughout the country and solid business links in various sec-tors of the economy, we can offer the branches of holding and multi-branch companies a set of special services, including credit facilities, settlements effected through the Client-Bank system, collection services, payroll schemes, and tailored so-cial programmes.

One good example is our cooperation with Mostransavto from Moscow Region. The bank’s offices service 49 branches of this company. The bank’s ATMs are installed at major bus terminals and stations in Moscow Region. Over the past year this com-pany has received RUR 2.5 billion in loans for the reconstruc-tion of its facilities and the enlargement of its fleet of vehicles, and its local branches have leased rolling stock through the bank. The motor transport enterprises of Mostransavto use our payroll services. A joint special purpose programme has been launched that provides for the extension of mortgage loans to its employees. To date, 65 mortgage loans have been extended, amounting to over RUR 50 million.

The bank also services 24 branches of Mosobldorremstroy OJSC. One of the most actively developed areas of cooperation is lending.

The agreement entered into with Russian Post has helped con-siderably to enhance cooperation in Moscow Region in 2005: the bank’s branches provide settlement and collection services to 18 post offices via the Client-Bank system providing remote account management and collection procedures.


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Vozrozhdenie Bank was among the first commercial banks to start providing services to retail clients, and has long been among top ten financial institutions in retail banking.

The services we provide are driven by our strategy based on long term relationships with retail clients supported by a continuous improvement in the quality of services, enhancement of availability, and a high level of personal service. To achieve this, we use the latest information and banking technologies. A new system for servicing private individuals is being introduced in the bank’s branches. Every year the bank opens over 20 new branches. The business hours of our offices servicing private individuals are being increased, and the number of employees directly servicing such customers is rising. The bank now operates a call centre, which provides customers with information and advice on banking products and services (telephone 8-800-200-9-888). Calls to this number are free for customers throughout Russia.

Deposits The bank offers a wide variety of special deposits so than clients can choose the deposit that best suits their needs. In 2005, the volume of funds held by retail clients in their accounts with the bank increased by 1.7 times, to over RUR 24.9 billion. Over 165,000 retail clients keep their savings with our bank.

In 2005 depositors preferred long term deposits extending to 1 year. Deposits such as Zolotoi Larets, Zolotoi Zapas and Multivalutny (multi-currency) were in greatest demand. In recent years, the growth rate of the volume of deposits held with Vozrozhdenie Bank has been above average over the Russian banking sector.

Loans

In 2005 Vozrozhdenie was a leading bank in terms of the growth rate of retail loan products such as mortgages, car loans, consumer loans and credit cards. The size of its retail credit portfolio grew by 4 times in 2005, reaching RUR 3.5 billion by the start of 2006.

Mortgage programmes are one of the priority lines of development for the bank’s retail business. In 2005, the bank became one of the leading operators of a state sponsored programme launched by the Housing Mortgage Lending Agency. The volume of mortgage loans extended as of 1 January 2006 reached RUR 1.3 billion. In 2005 the bank helped more than 2,000 families improve their housing conditions. The growth dynamics of mortgage loans are striking: at the start of 2005 the bank was extending 50 loans per month, by the end of 2005 the bank was extending over 250 loans per month. The monthly number of loans continues to increase.

The bank and its borrowers become long term partners — sometimes for up to 30 years. Through discussions with the bank’s relationship managers, borrowers can help ensure that loan terms are suitable for them. In 2005 the bank opened a special retail office in Moscow where retail clients can receive professional advice and obtain mortgage loans, car loans, and consumer loans. The bank is doing its best to make mortgage loans available for all.

In 2005 the bank cut its loan interest rates, reduced the down payment minimum, raised the age limit for borrowers, and increased the terms of loans. The new mortgage conditions have put mortgages within the reach of many more prospective borrowers, from young families to pensioners.

Retail customers’ funds

Vozrozhdenie Bank with you.

Retail business

depositscard balancescurrent accounts

The bank and developers operate joint programmes that enable private individuals to buy flats at the construction stage.All the bank’s branches issue mortgage loans to private individuals; Moscow Region, Altai Territory, Volgograd Region and Stavropol Territory have seen the fastest growth so far but we plan rapid growth in branches in other regions.

Within the framework of its car loans programmes, the bank issued loans in 2005 amounting to RUR 510 million, thus

increasing its car loan portfolio by 3.8 times. The unique «3+3» loan programme was in great demand among customers, as it provides for the extension of car loans on terms of a minimum monthly repayment. In 2005 the bank started cooperating with a number of major car dealers, including FK Motors, Nezavisimost, Autotrade AG, and Bavaria-Auto.

Retail loan portfolio

mortgagescredit cardscar loansconsumerother

Elman Azizov

Financial Director of JSC Russian American poultry

factory «Elinar-Broiler», Moscow region

We chose Vozrozhdenie Bank among the many other banks because of its unblemished reputation, and in all the years of working with it we have never had cause to regret this decision. The bank is our principal supplier of banking services: the handling of settlement accounts, the placing of freely available cash funds in certificates of

deposit, crediting. Now we are about to launch our payroll project. We have witnessed the professionalism of the bank’s employees, their outstanding efficiency and honesty. These are just some of the factors that have led us to regard Vozrozhdenie Bank not just as a bank that is «always with you», but also as a bank that is always ready to support you.


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Debit and credit cards Vozrozhdenie Bank issues international bank cards supported by payment systems such as Visa International and MasterCard International. All current cards are chip-and-pin, in accordance with the requirements of those payment systems.

Vozrozhdenie Bank started aggressively developing its bank card business in October 1998, and is now one of the leading financial institutions in terms of activity and promotion of services in the sphere of payment cards.

By the start of 2006, over 700,000 customers were using our bank cards. This is clear evidence that Vozrozhdenie Bank is

one of biggest issuers of bank cards in Russia. The turnover on clients’ cards increased by 1.5 times in 2005, amounting to RUR 42.5 billion.

Vozrozhdenie Bank operates an advanced ATM network that as of 1 January 2006 comprised over 400 24-hour ATMs, including 76 cash-in ATMs. In 2005 the bank significantly enhanced its ATM network, installing 87 new ATMs.

The bank has been continuously improving its ATM service, enabling its customers to use its ATMs to carry out an ever greater variety of operations. In 2005 the total number of transactions via ATMs exceeded 20 million, of which utility-

card balancesnumber of cards (RHS)

Development of bank cards business

Efficiency of bank cards operations

cards turnoverfees & commissions on card operations

bill payments, mobile phone payments and loan repayments accounted for 5.5 million.

Vozrozhdenie Bank issues credit cards to employees of enterprises participating in payroll services. In 2005 over 23,000 employees of such enterprises were provided with credit cards on favourable loan terms.

Vozrozhdenie Bank was one of the first Russian banks to offer its customers remote banking services. The bank’s employees have been continuously updating the information service, adding new features that allow our clients to obtain information on the status of their accounts via Internet, mobile or landline phones, and to block or unblock their cards.

Money transfers and payments

Since Vozrozhdenie Bank is a technology competent bank with a nationwide network of branches in 19 Russian regions, it can effect bank transfers and arrange payments swiftly and safely.

In 2005 the volume of payments made by retail clients increased by 33%, to RUR 8.9 billion, and the volume of transfers via the Western Union system grew by 2.5 times. In 2005 the bank, striving to meet the needs of customers who are concerned about the cost of services, started the phased connection of its offices to the Contact money transfer system.

Our range of banking products also includes such traditional services as safe deposit boxes for valuables, the sale of commemorative and collectable coins, and currency exchange.

ATM network development

number of cash-in ATMsnumber of ATMs

Transactions on financial markets

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Transactions on the interbank market

In 2005 Vozrozhdenie Bank continued to be an active player on the inter-bank lending market but primarily for liquidity management. The volume of interbank loans extended in rubles that year increased by 1.6 times compared to 2004, reaching RUR 289 billion. The bank has been investing funds for terms ranging from 1 day to 1 month. To maintain the bank’s liquidity, the bank has been placing significant amounts of freely available cash funds in deposits with the Bank of Russia.

Transactions on the securities market

In 2005 the bank’s volume of securities market trading increased by RUR 6 billion to RUR 49.6 billion. Over the past year the bank has been focused on transactions with government securities, which account for 80% of the total volume of securities trading, with the yield on such securities being well balanced between the reliability and liquidity of investments.

The bank expanded its operations in the regional bonds market, accomplishing transactions involving bonds of Moscow City, Moscow Region, Leningrad Region, Yaroslavl Region, Voronezh Region, Nizhny Novgorod Region, and other regional issuers.

To secure additional income and mitigate the risk of credit transactions, the bank has used instruments such as direct REPO operations (the purchase of securities subject to subsequent resale). The turnover of REPO transactions involving government stocks amounted to RUR 10.5 billion, while that on REPO transactions involving subfederal and municipal bonds on the MICEX stock exchange reached RUR 14.2 billion.

The bank actively uses Bank of Russia bonds as liquidity and yield instrument.

Exchange transactions

In 2005 the volume of exchange transactions increased by 1.8 times to USD 23.8 billion. Transactions on MICEX accounted for over 70%.

For further information on our bank and its services, please

visit our website: www.vbank.ru

Banking technologies

In 2005 the bank installed a new automated banking system at the head office that is capable of handling the full range of functions required to effect banking transactions, and started implementing the same system throughout its branch network. This will lead to the optimisation of business processes and a reduction in the costs of supplying banking services. Working in this new automated environment will help to create a uniform information space, speed up the banking process, and improve the quality of service to our clients.

In 2005 the bank started implementing a CRM system at its branches. With the launch of this new system, the quality of service to our clients and the efficiency of managers’ work will improve.

The bank has been introducing a software system for automating transactions of retail clients. This will enable clients to be serviced at any branch, irrespective of which branch the account is held in.

In 2005 the bank also began implementing a credit decision system TransactSM, which processes retail loan applications. It was developed with Experian Scorex, a global leader in the area of scoring systems. Within the framework of this project, the bank conducted an audit of its techniques for making loan decisions strengthen control over credit risk levels.

A team of professionals working for your success

Over the past 15 years the bank has forged a team of professionals that now exceeds 5,000 people. Professionalism, integrity, and the ability to work as a unified team, mutual support — these are qualities that are shared by all members of the bank’s team.

The principles of responsiveness, humanity and dependability underpin the business values of Vozrozhdenie Bank and set it apart from other banks. These values of Vozrozhdenie Bank are the driving force behind all the bank’s activities and are practised by all employees in their daily work. To this end, the bank runs special training programmes aimed at shaping a corporate culture that is based on the bank’s values. A brochure describing the bank’s values is provided to all employees.

In 2005 training programmes for Vozrozhdenie Bank employees covered all major areas of the banking business, with special

attention paid to the training of young professionals who have just graduated from leading educational institutions. Over 3,000 employees of the bank were involved in training events during 2005.

The bank’s employees are also able to upgrade their skills by participating in workshops, conferences and training events organised by external training centres in Moscow and other Russian cities. Our employees have undergone training in spheres such as economics, finance, law, accounting, new banking technologies, and banking security.

Our own corporate training workshops and conferences have also been held for employees. The lecturers and instructors have included specialists and managers from the bank, external advisers and experts, and senior officials of the Bank of Russia and Moscow City Tax Inspectorate.

The bank’s social mission

The guiding principle of Vozrozhdenie Bank is to understand the needs of our clients and foster relationships that are based on responsiveness, humanity and dependability. The bank’s participation in municipal and district events has already become something of a tradition, such as the Day of the City, youth events, forums for businessmen, and charity campaigns. This helps local residents get more closely acquainted with our bank and experience our warm, human approach to our customers.

The bank takes care of war veterans, and does its best to ensure that the truth about the heroic deeds of our people finds its way into the hearts and minds of our youngsters. In 2005 our bank sponsored and organised a 39-part military history television series broadcast by Channel Three, entitled «We Did our Best to Bring this Day Nearer», which was devoted to the

contribution of Moscow Region residents to our great Victory in World War II.

The bank pays particular attention to issues relating to the education and training of young people, supports secondary schools, sponsors scholarship programmes for students, and arranges internship programmes at the bank’s branches. The bank maintains close links with the Finance Academy under the Government of Russia, and the President of Vozrozhdenie Bank heads the Finance Academy’s Board of Trustees.

The bank also promotes the development of our culture, and assists in the renovation of historic monuments. In 2005, in particular, the bank assigned funds to the renovation of the Cathedral of Christ the Saviour.

Prospects for the bank’s development in 2006

Our strategy is to develop the bank in a number of key directions while we are focusing on meeting the needs of the rapidly expanding corporate and retail sectors of the Russian economy. To do this, we must effectively focus our resources on the most promising potential areas for growth and profit. Our primary goal is to offer even greater levels of individual service, provide security for our clients’ funds and help with development of their business.

1. Relations with corporate and retail clients

Developing our business based on long term relations with our clients is fundamental to the bank’s strategy. We put significant effort into informing and educating our clients so that they appreciate the usefulness and value of the bank’s services. Through these efforts and effective sales and marketing we plan to increase the value of our corporate client relationships by selling existing clients additional products and services such as alternative financing, transaction and cash services, and payroll services. Our retail activities are still accelerating in an underserved market. During the next two years we will continue to improve our position among the top 10 banks in retail deposits and mortgages. We will also continue to develop financial products based on bank cards. The bank is one of the leading Russian banks in terms of the volume and quality of card related services and the number of cards issued will exceed 1,000,000 in the next year. The bank services the payroll needs of over 2,500 commercial clients using debit cards and plans to increase this number to at least 3,000 over the next two years.

2. Capital strategy We intend to increase the bank’s capitalisation and liquidity of our shares traded on exchanges. We do not envisage any invitation to strategic investors who might change the bank’s independent strategy or well-established brand. The bank has already had 18 issues of new equity and we plan in the near future to issue additional equity to a broad range of professional and individual investors. We want to continue the public, open and diversified structure of our ownership. Management maintains a significant position in the bank’s capital and it is pursuing a development strategy that is aimed at increasing the price of Vozrozhdenie Bank shares and boosting the efficiency of its activities in the interests of all shareholders. We plan continuing increases in efficiency that will reduce our cost/income ratio to 60-65% and increase our profitability to above 20-25%. A good record of earnings, we believe, will also allow us to access new capital from both Russia’s developing domestic capital market and from abroad.

3. Governance and organization

We will continue to improve our corporate governance and internal control systems. In 2006 a centralized marketing and communications function will be implemented helping to focus the bank’s brand and maintain a strong corporate culture as the bank expands. We will also develop programmes to further improvement of our employees’ professional skills.

4. Technology strategy

During next two years the bank will completely replace its core technology platform. Our expanding business demands sound operational systems and an effective way of managing our client relationships. We are implementing a completely new core technology platform that will create a uniform information base, allowing client service at any location, independent of the branch where the account is held. A relationship management system for retail accounts will allow significant increases in sales efficiency. Furthermore, technology related enhancements to our risk management practices should maintain our low credit loss record.

5. Sales and network strategy

As at 1 January 2006, our branch network included 138 branches and more than 400 ATMs. We plan to expand our sales infrastructure so as to make it more convenient for our customers to access our services. Every year the bank opens approximately 20 new branches or sub-branches and about 50 new ATMs each year. The focus will continue to be on regions and cities with high potential and growth of independent small and medium sized businesses. In the next two years, we plan to increase the number of ATMs to over 500, expanding the functionality of our ATM-based payment services and equipping all the bank’s branches with cash-in ATMs.

Corporate governance

Vozrozhdenie Bank is one of the leading financial institutions in the sphere of corporate governance.

The bank maintains high standards of corporate governance and is guided by the following principles: respect for and protection of shareholders’ rights, control over assets and economic activities, information transparency, and accountability of management.

We have a productive relationship with the International Finance Corporation (IFC), which a few years ago made a positive assessment of the bank’s corporate governance system. The bank was one of the first banks in Russia to adopt a Corporate Governance Code, which contains the fundamental principles and objectives for improving the effectiveness of corporate governance — one of the most crucial factors for the stability of the bank’s operations. On the basis of the

principles set out in the Code, the bank has issued a number of internal documents regulating the division of authorities, the competences and accountability of management bodies, the internal control and risk management systems, and disclosure rules and procedures.

Since 1991 the bank has been preparing audited financial statements in accordance with both Russian and international standards. In 2005 the international rating agency Standard & Poor’s assigned us its highest ranking among top Russian banks, based on the bank’s information transparency and openness.

For further information on our corporate governance principles, internal documents, and shareholder and investor relations, see «Investor relations» on our website: www.vbank.ru

Yuriy Shcherbakov

First Vice-president of OOO Holding company Parnas,

Saint Petersburg

Mutual understanding is crucial both in relationships between people and in business. We have established great communication and mutual understanding with Vozrozhdenie Bank. I’ve had dealings with other banks, and they have all given the impression that our company should count itself blessed and fortunate that they were

prepared to do us a favour. With Vozrozhdenie Bank, we speak the same language. Virtually all the bank’s employees are communicative, friendly, and always keen to meet your wishes. This is what makes Vozrozhdenie Bank so distinctive.


30

The highest governing body of the bank is the General Meeting of Shareholders. The General Meeting of Shareholders elects the Supervisory Council, which is empowered with the general authority to manage bank’s activities.

Management of bank’s operations is executed by a single executive – the Chairman of the Bank’s Management Board (the President) elected by the General Meeting of Shareholders. For operational management the Supervisory Council elects a corporate executive body – the Bank’s Management Board.

The Bank’s Management Board is responsible for most important decisions regarding operational management of the bank’s activities that require joint approval.

The General Meeting of Shareholders

The General Meeting of Shareholders is the highest governing body of the bank.

The bank ensures equal participation of all shareholders in the meeting, their timely notification of the calling of a meeting and also provides them with information and materials necessary for making decision on the items on the agenda.

Notification of and basic information about the General Meeting of Shareholders, including time, place and form of the meeting and its agenda are published in the newspaper «Ezhednevnye Novosti: Podmoskovie» and at the bank’s Internet website at least 30 calendar days prior to the scheduled day of the meeting.

The Supervisory Council

The Supervisory Council of the Bank is responsible for the general management of the bank’s activities, except the questions reserved to the exclusive competence of the General Meeting of Shareholders.

The Supervisory Council is empowered to determine the strategic policy of the bank, to control its financial and economic activities, establish and maintain an effective system of internal control, secure shareholders’ rights and supervise the activity of the executive bodies.

The Supervisory Council includes 12 members elected by cumulative voting during the annual General Meeting of Shareholders for a period till the next scheduled annual General Meeting of Shareholders or a special General Meeting of Shareholders with election of new members of the Supervisory Council on its agenda.

On June 24, 2005, the General Meeting of Shareholders elected the Supervisory Council of the Bank consisting of 12 members.

As per the requirements of the Bank’s Corporate Governance Code, the Supervisory Council should include at least three independent members in order to secure objective decision making and to maintain a balance between interests of different groups of shareholders. Criteria of the Supervisory Council members’ independence are based on the Regulations on Organization of Trading Activity on the Securities Market adopted by The Federal Financial Market Service.

The governing bodies of the bank

Name, year of birth Positions at the bank and other organizations The portion of the

bank’s shares owned

Education

Yury M. Marinichev1937

Chairman of the Supervisory Council of the Bank;Chairman of the Moscow Regional Union of the Consumers’ Cooperation

0.28 Higher,Moscow Transport Institute,Moscow S. Ordzhonikidze Institute of Economics

Dmitry L. Orlov1943

Chairman of the Bank’s Management Board; Deputy Chairman of the Supervisory Council of the Bank

38.36 Higher,Moscow Finance Institute

Lyudmila A. Goncharova1958

Deputy Chairman of the Bank ‘s Management Board 1.76 Ternopol Institute of Financeand Economics

Alexander V. Dolgopolov1961

Deputy Chairman of the Bank ‘s Management Board 0.56 Higher,Moscow G. V. Plekhanov Instituteof National Economy

Boris F. Borin1939

The General Director of Elektrostal Metallurgical Plant, OJSC 0.000002 Higher,Moscow Institute of Metallurgy,The Academy of National Economy under the USSR Council of Ministers

Sergey A. Vybornov1958

General Director of the Investment Group ALROSA, OJSC 0.00 Higher,Moscow State Institute of International Relations (MGIMO)

Alexander I. Goyev1947

General Director of Krasnogorsk S. A.Zverev Mechanic Industries, OJSC

0.002 Higher,Mogilev Engineering Institute,Academy of National Economy under the USSR Council of Ministers

Nikolai Y. Demin1936

General Director of AVK Exima, NPJSC;General Director of Mikoyan Meat Processing Plant, NPJSC

0.00 Higher,Moscow K. A. Timiryazev Academy of Agriculture

Nikolai S. Zatsepin1951

General Director of Mozhaisk Wholesale and Retail Trade Company, NPJSC;General Director of LLC Edelweiss

0.20 Higher,Moscow Institute of Civil AviationEngineers

Valentina M. Kabanova1937

Retired 0.01 Higher,The All-Union Financial and Economic Institute

Otari L. Margania1959

Senior Vice-President of Vneshtorgbank, OJSC 0.00 Higher,Leningrad State University

Rustem M. Usmanov1949

General Director of Almazyuvelirexport,state owned foreign trade company

0.00 Higher,Moscow State Institute of International Relations (MGIMO)

Members of the Supervisory Council

Name, year of birth Positions at the bank The portion of the


Education

Dmitry L. Orlov1943

Chairman of the Bank’s Management Board 38.36 Higher,Moscow Finance Institute

Lyudmila A. Goncharova1958

Deputy Chairman of the Bank’s Management Board 1.76 Higher,Ternopol Institute of Finance and Economics

Alexander V. Dolgopolov1961

Deputy Chairman of the Bank’s Management Board 0.56 Moscow G. V. Plekhanov Institute of National Economy

Mark M. Nakhmanovitch1957

Deputy Chairman of the Bank’s Management Board 0.56 Higher,Moscow K. A. Timiryazev Academy of Agriculture

Yury I. Novikov1962

Deputy Chairman of the Bank’s Management Board;Head of the Bank’s North-Western Inter-Regional Centre (representative office of the Bank in the North-Western federal district and economic area)

0.00 Leningrad State University

Nikolay D. Orlov1971

Deputy Chairman of the Bank’s Management Board 2.44 Higher,Finance Academy under the Government of Russia

Dmitry A. Strashok1951

Deputy Chairman of the Bank’s Management Board 0.30 Higher,All-Union Institute of Agriculture

Tatyana F. Gavrilkina1959

Deputy Chairman of the Bank’s Management Board Head of Finance Department


Alexander A. Bolvinov1962

Head of HR Department 0.00 Higher,Moscow State Institute of InternationalRelations (MGIMO)

Tamara I. Luzhina1950

Deputy Head of Finance Department 0.29 Higher,All-Union Institute of Finance and Economics

Oleg V. Kharlamov1938

Head of Administrative Department 0.01 Higher,All-Union Polytechnic Institute

32


Members of the Management Board

Remuneration for members of the bank’s governing bodies

There was no compensation fixed for members of the Supervisory Council, and no payment was made.

The remuneration for members of the executive bodies (salary and bonus) for the year 2005 totaled 112,497 thousand rubles.

Audit Commission

The Audit Commission consists of four members and was elected by the General Meeting of Shareholders on June 24, 2005.

Name, year of birth Positions at the bank and other organizations The portion of the


Education

Viktor A. Afonin1956

Chairman of the Audit Commission,Deputy General Director of Almazyuvelirexport (GUPVO)


Tamara N. Lapinskaya1954

Deputy Head of Business Planning and Analysis Division of the FinanceDepartment, Vozrozhdenie Bank (OJSC)


Svetlana A. Markina1952

Head of Internal Operations Recording Division of the Accounting and Financial Reporting Department, Vozrozhdenie Bank (OJSC)

0.001 Specialized Secondary,All-Union School of Accountingand Credit

Natalya A. Romanenko1963

Head of Monitoring Division of the Corporate Department, Vozrozhdenie Bank (OJSC)

0.00 Higher,Moscow G. V. Plekhanov Instituteof National Economy

Auditor of the bank

An independent auditor has audited the bank’s activities since its foundation in the year 1991. The Audit carried out under both Russian Accounting Standards (RAS) and International Financial Reporting Standards (IFRS).

The official Auditor of the bank is ZAO PricewaterhouseCoopers Audit.

Disclosure of interested party transactions

In 2005 the bank entered into a number of transactions involving members of the bank’s executive bodies and the Supervisory Council that are deemed interested party transactions under the applicable laws of the Russian Federation. The total volume of interested party transactions entered into by the bank in 2005 amounted to RUR 9,769,153,000 and USD 35,766,000, including: • RUR 6,993,281,000 and USD 25,310,000 in loans extended to legal entities • RUR 150,000 and USD 286,000 in loans extended to individuals;• RUR 1,708,120,000 and USD 2,000,000 in credit facility agreements;

• RUR 70,000,000 in clients’ funds placed as deposits;• RUR 7,950,000 in bank guarantees issued;• RUR 396,970,000 and USD 8,170,000 in contracts for the sale and purchase of certificates of deposit and promissory notes;• RUR 592,682,000 in contracts for the sale and purchase of precious metals.

The bank entered into such transactions in the course of its normal business operations and on its standard terms. The prices for such interested party transactions were determined in accordance with the Guidelines of Fundamental Principles for Management of Resources of Bank Vozrozhdenie (OJSC) that are denominated in Russian Roubles and Foreign Currencies.

The amounts involved in each transaction accomplished by the bank with a related party did not exceed the upper limit established by resolutions of annual general meetings of the bank’s shareholders, which is 5% of the balance sheet value of assets appearing in the bank’s financial statements as at the relevant reporting date (Minutes № 1 of 25/06/2004 and Minutes № 1 of 24/06/2005).

Members of the Internal Audit Commission

Capital and dividends

Structure of the Authorized Capital

As at January 01, 2006 the authorized capital of the bank amounted to 200,431,990 Rubles.

Shares issued

The equity issue under state registration number 20101439В was cancelled, due to the terms for converting preferred non-documentary registered shares with a face value of RUR 10 each into common non-documentary registered shares bearing

state registration number 10101439В with a face value of RUR 10 each. (1,999,941 shares under state registration number 20101439В were cancelled on the basis of the letter № 33-1-5/3318, issued by the Bank of Russia on 11/05/05.)

Class of Shares Government registration

number

Face Value

(Rubles)

Number of shares issued

Common non-documentary registered shares 10101439В 10 18,748,694

Preferred non-documentary registered shares with fixed dividends

20201439В 10 1,294,505

Alexander Domashenko

Deputy General Director of OJSC Rokadovskie Mineralnye Vody

(Rokadov Mineral Water), Rostov-on-Don

We have met like-minded people at Vozrozhdenie Bank. Our partnership is aimed at upgrading our production facilities, increasing our capacities, creating new jobs. Thanks to the re-equipment of our production facilities, we have managed to increase output considerably. Our high quality water is now available to many more people, and it

will have a positive effect on their health. We are grateful to Vozrozhdenie Bank for their mutual understanding and sensitivity, and we believe that our cooperation will contribute to the development of the economy and the preservation of the nation’s health.


Name Class of Securities Date of Listing

Non-commercial Partnership «Stock Exchange «Russian Trade System» (NP RTS)

Common non-documentary registered shares (VZRZ) May 1997

Non-public Joint-Stock Company «Moscow Interbank Foreign Currency Exchange» (MICEX)

Common non-documentary registered shares (VZRZ)Preferred non-documentary registered shares with fixed dividends (VZRZP)

February 1998 February 1998

Berlin Stock Exchange ADR of first level for common registered shares(VZYy.Be, U.S.ISIN US0654531021)

July 1997

Frankfurt Stock Exchange ADR of first level for common registered shares(VZYy.F, U.S.ISIN US0654531021)

August 1997

Stuttgart Stock Exchange ADR of first level for common registered shares(VZYy.Sg, U.S.ISIN US0654531021)

November 2000

Trading floors

The volume of trade on German stock exchanges during the year 2005 was equal to $ 7,390 thousand.

The volume of trade on MICEX during the year 2005 totaled 92 million rubles and on RTS – $ 3.2 million.

In total on Russian stock exchanges trades of 366 thousand shares were concluded for the amount of 182 million rubles. Active trading in common shares of Vozrozhdenie Bank started in August 2005. At the beginning of 2006 shares were included into the «B» listing of MICEX.

36

Price for common shares of Vozrozhdenie Bank

on MICEX in 2005

volumes of tradeADR price

Price for Vozrozhdenie Bank’s ADRs

on German stock exchanges in 2005

Price for common shares of Vozrozhdenie Bank

on NP RTS in 2005

volumeprice

volumeprice

On January 01, 2006 8,030 shareholders were registered in the register of Vozrozhdenie Bank shareholders, including 918 legal entities and 7,112 individuals.

Shareholders structure as at January 01, 2006

Share in the Authorized Capital (%)

Individuals 50.78

Non-residents 12.01

including holders of ADRs 2.74

Other legal entities 36.93

Total legal entities 48.94

Russian Government Agencies 0.28

Shareholder Share in the Authorized Capital (%)

Dmitry L. Orlov 38.36

Non-public joint-stock company «Depository Clearing Company»* 24.27

Burlington Trading Co Limited 5.25


38

Shareholders structure

01.01.2006

Capital of the bank (Thousands Rubles) 3,273

Number of shares (common & preferred) 20,043,199

Book value per share* 163.3

P/BV** 5.1х

* Without subordinated deposits .

** Market price of the shares at MICEX on December 31, 2005 was equal to 840.57 rubles.

Capital of the bank

List of shareholders owning more than 5 percent of bank’s authorized capital as

at January 01, 2006

* Nominee

Report on declared dividend payments on bank’s shares

Year Common non-documentary

registered shares

Preferred non-documentary

convertible registered shares*

Preferred non-documentary

registered shares with fixed dividends

Total

2002 5,624.38 999.97 2,589 9,213.35

2003 8,374.38 999.97 2,589 11,963.35

2004 9,374.35 - 2,589 11,963.35

* The equity issue under state registration number 20101439В was cancelled, due to the terms for converting preference non-documentary registered shares with a par value of RUR 10 each into common non-documentary registered shares bearing state registration number 10101439В with a par value of RUR 10 each.

According to the resolution of the General Meeting of Shareholders (Protocol No. 1 dated 24 June 2005) annual dividends for the year 2004 were declared on shares of all classes in the amount of 11,963.35 thousand Rubles.

Dividends were paid from August 16, 2005 by transferring the relevant amounts to current accounts of corporate shareholders and to personal accounts of individual shareholders according to the data of the Shareholders Register. In case if banking details of individual shareholders were not available dividends were paid in cash at the bank’s offices.

Registrar of Open joint-stock company Bank Vozrozhdenie:

Joint-Stock Company Specialized Registrar AVISTA.License No. 10-000-1-00271 issued by the Federal Securities Commission on 24 December 2002.

Mailing address: Luchnikov Pereulok, 7/4, Building 1, 101999 Moscow, Open joint-stock company Bank Vozrozhdenie (for Moscow branch of JSC AVISTA)Phone: (495) 620-1861.

American Depository Receipts (ADR) of first level for common shares

of Bank Vozrozhdenie (OJSC)

Depository (Issuer of ADR)

The Bank of New YorkAddress: The Bank of New York, American Depositary Receipt Division101 Barclay Street, New York, NY, 10286.Phone: + 1 (212) 815-4493Fax: + 1 (212) 571-3050Representative Office in Moscow Address: Posledny Pereulok, 17, Office 4, 103045 Moscow.Phone: (495) 967-3110

Custodian Bank

ING Bank (Eurasia) ZAO.Address: Krasnaya Presnya Street, 31, Moscow, 123022 Russia.Phone: (495) 755-5400Fax: (495) 755-5499

Process Agent

C.T. Corporation System.Address: 111, Eighth Avenue New York, NY 10011.Phone: + 1 (212) 894-8600Fax: + 1 (212) 894-8690

Dividends

Dividends on common non-documentary registered shares have been paid at a rate of 5% of the share’s face value since the year 2002.

Dividends on preferred non-documentary convertible registered shares were paid at the same rate until their conversion into common shares in the year 2005.

Dividends on preferred non-documentary registered shares with fixed dividends have been paid at a rate of 20% of the share’s face value regularly.

thousand rubles

Financial statements

Auditors’ report on the summarised consolidated

Financial statements (IFRS)

To the Supervisory Council of Vozrozhdenie Bank:

We have audited the consolidated financial statements of Vozrozhdenie Bank and its associate as at 31 December 2005, from which these summarised consolidated financial statements were derived, in accordance with International Standards of Auditing.

In our report dated 31 March 2006 we expressed an opinion that the consolidated financial statements of the Group (not attached herewith), from which these summarised consolidated financial statements have been derived, present fairly, in all material respects, the financial position of the Group as at 31 December 2005 and the results of its operations for the year then ended in accordance with International Financial Reporting Standards.

In our opinion, the accompanying consolidated summarised financial statements are consistent, in all material respects, with the consolidated financial statements from which these summarised consolidated financial statements have been derived.

For a better understanding of the Group’s financial position and the results of its operations for the year, and of the scope of our audit, these summarised consolidated financial statements should be read in conjunction with the consolidated financial statements, from which these summarised consolidated financial statements have been derived, and our audit report thereon.

Moscow, Russian Federation31 March 2006

Zinaida Lukicheva

Yaroslavl

When I decided to buy my first car I compared the car loan offers of seven different banks. The offer of Vozrozhdenie Bank was the most attractive. The bank’s employees were very helpful to me. I received clear answers to all my questions, and the documents were processed without delay. In late December 2005 I ceased to be a pedestrian and became a motorist, getting

into the driver’s seat of my own car. Now, whenever I take my son for a drive around the city, I remind myself that this has all been made possible by Vozrozhdenie Bank.

In millions of Russian roubles 31 December

2005

31 December

2004 (restated)

Assets

Cash and cash equivalents 8,478 3,964

Mandatory cash balances with the Central Bank of the Russian Federation 923 579

Trading securities 2,342 523

Due from other banks 3,078 946

Loans and advances to customers 30,774 22,055

Premises, equipment and intangible assets 1,972 1,691

Other assets 1,542 869

Total assets 49,109 30,627

Liabilities

Due to other banks 113 323

Customer accounts 40,112 24,414

Debt securities in issue 4,131 2,187

Subordinated loans 1,223 698

Exchangeable convertible preference shares - 127

Other liabilities 257 274

Total liabilities 45,836 28,023

Equity

Share capital 4,377 4,371

Share premium 1,735 1,610

Revaluation reserve for investment securities available-for-sale - (6)

Accumulated deficit (2,839) (3,371)

Total equity 3,273 2,604

Total liabilities and equity 49,109 30,627

Summarised Consolidated Financial Statements Derived from the Audited Consolidated Financial

Statements

Balance Sheet


Approved for issue on 31 March 2006.

D.L.Orlov

PresidentA.A.Novikova

Chief Accountant

42

In millions of Russian roubles 2005 2004

(restated)

Interest income 4,155 3,528

Interest expense (2,044) (1,474)

Net interest income 2,111 2,054

Provision for loan impairment (247) (467)

Net interest income after provision for loan impairment 1,864 1,587

Gains less losses from trading securities 97 22

Gains less losses from disposal of investment securities available-for-sale 25 -

Gains less losses from trading in foreign currencies 168 87

Gains less losses from dealing in precious metals 22 25

Foreign exchange translation (losses net of gains)/gains less losses (28) 7

Fee and commission income 1,514 1,048

Fee and commission expense (82) (65)

Losses on initial recognition of assets at rates below market - (15)

Gains on initial recognition of liabilities at rates below market - 33

Release of provision for losses on credit related commitments 33 -

Losses from disposal of loans and advances to customers - (111)

Dividend income 13 16

Other operating income 118 114

Operating income 3,744 2,748

Administrative and other operating expenses (3,037) (2,258)

Gain from disposal of subsidiary - 17

Profit before tax 707 507

Income tax expense (163) (46)

Profit for the year 544 461

Profit attributable to

Equity holders of the Bank 544 444

Minority interest - 17

Profit for the year 544 461

Earnings per share for profit attributable to the equity holders of the Bank, basic

(expressed in RR per share)

Ordinary and convertible preference shares 28 22

Preference shares with fixed dividend 29 25

Earnings per share for profit attributable to the equity holders of the Bank, diluted

(expressed in RR per share)

Ordinary and convertible preference shares 28 22

Preference shares with fixed dividend 29 25

Summarised Consolidated Financial Statements Derived from the Audited Financial Statements

Statement of Income

In millions of Russian roubles Attributable to equity holders of the Bank Minority

Interest

Total

equityShare

capital

Share

premium

Revaluation

reserve for

investment

securities

available-for-sale

Accumulated

deficit

Total

Previously reported balance at 31 December

2003

4,371 1,610 - (3,821) 2,160 65 2,225

Revaluation reserve for investment securities available for sale

- - (24) 24 - - -

Income tax recorded in equity - - 6 (6) - - -

Adjusted balance at 1 January 2004 4,371 1,610 (18) (3,803) 2,160 65 2,225

Available-for-sale investments:

- Fair value gains less losses - - 16 - 16 - 16

Income tax recorded in equity - - (4) - (4) - (4)

Net income recognised directly in equity - - 12 - 12 - 12

Profit for the year - - - 444 444 17 461

Total recognised income for 2004 - - 12 444 456 17 473

Dividends declared - - - (12) (12) - (12)

Disposal of subsidiary - - - - - (82) (82)

Balance at 31 December 2004 4,371 1,610 (6) (3,371) 2,604 - 2,604

Available-for-sale investments:

- Fair value gains less losses - - 33 - 33 - 33

- Disposals - - (25) - (25) - (25)

Income tax recorded in equity - - (2) - (2) - (2)

Net income recognised directly in equity - - 6 - 6 - 6

Profit for the year - - - 544 544 - 544

Total recognised income for 2005 - - 6 544 550 - 550

Share issue 6 125 - - 131 - 131

Dividends declared - - - (12) (12) - (12)

Balance at 31 December 2005 4,377 1,735 - (2,839) 3,273 - 3,273


44


Statement of Changes in Equity

In millions of Russian roubles 2005 2004

Cash flows from operating activities

Interest received 4,102 3,525

Interest paid (1,622) (1,400)

Net income received from dealing with trading securities 72 30

Net income received from disposal of investment securities available-for-sale 25 -

Net income received from trading in foreign currencies 155 87

Net income received from dealing in precious metals 22 25

Fees and commissions received 1,552 1,050

Fees and commissions paid (82) (65)

Other operating income received 90 119

Administrative and other operating expenses paid (2,870) (2,130)

Income tax paid (182) (14)

Cash flows from operating activities before changes in operating assets and liabilities 1,262 1,227

Changes in operating assets and liabilities

Net (increase)/decrease in mandatory cash balances with the Central Bank of the Russian Federation (344) 969

Net increase in trading securities (1,780) (208)

Net increase in due from other banks (2,112) (553)

Net increase in loans and advances to customers (8,673) (6,173)

Net increase in other assets (111) (176)

Net (decrease)/increase in due to other banks (210) 233

Net increase in customer accounts 15,094 2,220

Net increase in debt securities in issue 1,812 1,331

Net decrease in other liabilities (20) (260)

Net cash from/(used in) operating activities 4,918 (1,390)

Cash flows from investing activities

Acquisition of investment securities available-for-sale (749) (53)

Proceeds from disposal of investment securities available-for-sale 290 9

Acquisition of premises, equipment and intangible assets (497) (276)

Proceeds from disposal of premises, equipment and intangible assets 16 -

Dividend income received 13 16

Net cash used in investing activities (927) (304)

Cash flows from financing activities

Receipt of subordinated loans 490 290

Dividends paid (12) (12)

Net cash from financing activities 478 278

Effect of exchange rate changes on cash and cash equivalents 45 (84)

Net increase in cash and cash equivalents 4,514 (1,500)

Cash and cash equivalents at the beginning of the year 3,964 5,464

Cash and cash equivalents at the end of the year 8,478 3,964

For a better understanding of the Bank’s financial position and the results of its operations for the year, and of the scope of our audit, these summarised consolidated financial statements should be read in conjunction with the consolidated financial

statements, from which these summarised consolidated financial statements have been derived, and audit report thereon. Copies of audited consolidated financial statements can be obtained from Vozrozhdenie Bank.


Statement of Cash Flows


We are very pleased to provide our commentary on the business and financial results for 2005. Under International Financial Reporting Standards (IFRS) our profit after tax was RUR 544 million ($19 million), an increase of 18% from the previous year, and our return on equity was 19%. Earnings per share were 28 rubles ($0.97). Our equity increased 26% due to retention of earnings and extinguishing the contingent liability relating to our convertible preferred shares, which became common shares in 2005. There is no longer any dilution of earnings due to convertible securities.

We are pleased to note that this is the second year in which we can fairly say that unusual items do not distort our results and that our return on equity reflects the underlying strength of the bank’s operations. We have some gains still to make in terms of efficiency as the business grows and our technology improvements begin to reduce the growth in operating expenses. Although we are close to our targeted return of a minimum 20% ROE, we feel that in 2006 we will be able to exceed this target return.

The Russian economy continues to develop well, with sound government fiscal policies. We see significant strengthening in our core markets: independent businesses and retail banking. Small and medium sized businesses in the regions in which we operate are now developing real strength as they mature into stable operations. We now provide banking services to over 40,000 companies and are providing a broader range of services and support as we build solid relationships with our clients. One of the most significant is payroll services. We now provide over 700,000 individuals, employees of our commercial customers, with debit cards to allow direct payment of their monthly salaries.

Perhaps the greatest changes in the financial system have to do with a greater acceptance by individuals of banks as a useful and necessary part of their lives. Our business is based on relationships with all clients; for individuals this means not just providing a debit card, but better ways to use their money, to save and to borrow. This is appropriate given our position as 10th largest bank by deposits from individuals. The consumer loan and mortgage programs we initiated in 2004 grew very strongly last year and by year-end we were the 9th largest issuer of new mortgages for purchasing residences. We are clearly consolidating our position as one of Russia’s top ten retail banks.

We are expanding our network in order to serve existing clients better and to attract new clients in regions where we see the greatest growth in diverse economic activity. Last year we added 20 new branches to reach 138. For many individual clients the most useful and convenient way of banking is by using bank machine – ATMs. We installed 87 new ATMs in 2005, most with the ability for clients to deposit cash as well as take it out. This has increased the use of ATMs for payments and other transactions. Last year 20 million transactions, including 5.5 million payments, were made using ATMs.

Our expansion is reflected in the significant growth of assets, which reached $1.7 billion at year-end, a 60% increase from the previous year. Our retail lending programs, initiated only in 2004, are growing very rapidly and now comprise 11% of our loan portfolio, up from only 4% the previous year. We are a leading bank in working with the Federal Housing Financing Agency (AIGK). We have issued 1.3 billion rubles ($45 million) in new mortgages of which one-third have been refinanced with AIGK.

Net interest income grew only slightly as margins decreased somewhat and a stricter application of IFRS standards required loan fees, treated as interest income, to be amortized over the life of the facility. We have also carried a higher proportion of lower yielding liquid securities as we rebuilt our liquidity which was reduced last year by the summer confidence crisis. Our loan portfolio continues to be very sound; the portion of past due loans was reduced by half and equals only 1.4% of the total corporate loan portfolio. Despite the very high growth of our retail loan portfolio the portion of retail problem loans continues to be at the level of 0.2%. We have maintained our provision for possible losses at a prudent 5% of the portfolio or 1.6 billion rubles ($56 million).

Non-interest revenue grew 46% with the largest portion contributed by a 449 million ruble ($16 million) increase in income from corporate and individual fees and commissions for banking services. The number of actual banking transactions exceeded 32 million, a 40% increase during the year. The bank has issued over 700,000 international debit and credit cards and the volume of funds placed on card accounts and transaction volumes increased by 50% last year. The bank now provides payroll services to over 2,500 corporate clients.

Management Commentary to Financial Results under International Financial Reporting

Standards for the year 2005

46

Operating expenses grew 34% as volumes increased and the branch network expanded. The bank has 5,100 employees a 13% increase from the previous year primarily due to the expanded branch network. Staff costs make up 56% of operating expenses, a slight reduction from the previous year. Our cost/income ratio, 70%, is high due to investments in new technology and the costs of branch expansion. Increasing efficiency as our core banking technologies are implemented

this year and increasing use of electronic banking by our clients will help us achieve our 60% target within three years.

Profit before tax increased 35%, however our effective tax rate this year under IFRS increased sharply due to diminution of the difference between accounting profit and profit for calculation of taxes. Taxes increased by 117 million rubles, reducing the increase in after tax profit to 18%.

Financial highlights for 2003 – 2005

Financial Trends IFRS Results RUR (Millions) USD (Millions)

2005 2004 2003 2005 2004 2003

Assets (year-end) 49,109 30,627 26,775 1,706 1,104 909

Average Assets 39,868 28,701 21,679 1,385 1,006 715

Equity (year-end) 3,273 2,604 2,160 114 94 73

Average Equity 2,938 2,382 1,603 102 86 54

Net Interest Income 2,111 2,054 1,133 73 74 39

Provisions 247 467 307 8 17 10

Non-Interest Income 1,880 1,272 1,249 65 46 42

Expenses 3,037 2,258 1,823 105 81 62

Disposal, Restructuring & Inflation 0 -94 -149 0 -3 -5

Profit 707 507 103 25 19 4

Tax 163 46 20 6 2 1

Minority Interest 0 0 6 0 0 0

Profit after tax 544 461 89 19 17 3

Return on Equity 19% 19% 6%

Return on Assets 1.36% 1.61% 0.41%

Earnings per share 28 r 22 r 6 r


To the Shareholders of Open Joint-Stock Company Bank

«Vozrozhdenie»:

1. We have audited the accompanying Annual Accounting Report and the Published Statutory Annual Report Forms prepared on the basis thereof of Open Joint-Stock Company Bank «Vozrozhdenie» (henceforth – «the Bank»), for the period from 1 January 2005 to 31 December 2005 inclusive. In accordance with Bank of Russia Instruction No. 1530-U of 17 December 2004 «On the Annual Accounting Reports of Credit Institutions,» the Bank’s Annual Accounting Report comprises an annual balance sheet, a profit and loss account, summarized information on movements relating to post balance sheet events and an explanatory note (hereinafter collectively referred to as «the Annual Accounting Report»). In accordance with Bank of Russia Instruction No. 1270-U of 14 April 2003 «On the Published Reports of Credit Institutions and Banking/Consolidated Groups,» and Bank of Russia Instruction No. 1376-U of 16 January 2004 «On the List of Reports, their Format and Procedure for Submission of Reports by Credit Institutions to the Central Bank of Russian Federation», the Bank’s Published Statutory Annual Report Forms comprise a balance sheet, a profit and loss account, report on a capital adequacy level and an amount of provision for doubtful debts and other assets, information on composition of participants in the bank (consolidated) group, on the equity funds adequacy level and on the size of the provision for doubtful

debts and other assets (hereinafter collectively referred to as «the Published Statutory Annual Report Forms»). The Annual Accounting Report has been prepared by the Bank’s management on the basis of the accounting reports prepared in accordance with the Russian legislation and the Bank of Russia regulations. The Published Statutory Annual Report Forms have been prepared by the Bank’s management on the basis of the Annual Accounting Report. The Annual Accounting Report and the Published Statutory Annual Report Forms, prepared on this basis, differ significantly from financial statements prepared in compliance with International Financial Reporting Standards, especially with respect to measurement of assets and capital, recognition of liabilities, and disclosures.

2. The preparation and presentation of the Annual Accounting Report and the Published Statutory Annual Report Forms is the responsibility of the Bank’s management. Our responsibility as statutory auditors is to express an opinion, based on our audit, concerning the proper preparation of these Annual Accounting Report and the Published Statutory Annual Report Forms in all material aspects and regarding the compliance of the Bank’s accounting procedures with the effective Russian Federation legislation and regulations applicable to the activity of credit institutions in the Russian Federation in all material aspects for the purpose of preparing annual accounting reports and published statutory accounting report forms.

48

Full IFRS statements, with notes, are posted on the bank’s web-site www.vbank.ru and will also be sent on request to the address [email protected]

The differences between the assets and liabilities of the bank under the Russian Accounting Standards (RAS) and under the International Financial Reporting Standards (IFRS) come from the difference in the methods of:• calculation of the provisions for possible loan losses

• evaluation of the fixed assets• calculation of the shareholders’ equity of the bank

The differences between interest income and expenses in the bank’s income statement under the RAS and under IFRS arise from the different accounting methods: accounting procedures according to RAS generally use a cash method of income and expense calculation, while accounting procedures according to IFRS generally use an accrual method.

Audit reporton the Annual Accounting Report and the Published Statutory Annual Report Forms of Open Joint-Stock Company Bank

«Vozrozhdenie», prepared on the basis thereof

Financial statements and auditor’s report under Russian Accounting Standards (RAS)

3. We conducted our statutory audit in accordance with:• federal Law «On Audit Activities»• federal Law «On Banks and Banking Activity»• federal Rules (Standards) on Audit Activity• bank of Russia Regulations on activity of credit institutions, and• international Standards on Auditing

Our statutory audit was planned and performed so as to obtain reasonable assurance as to whether the Annual Accounting Report and the Published Statutory Annual Report Forms are free from material misstatements. Our statutory audit was conducted on a sample basis and included the examination, on a test basis, of evidence supporting the amounts and disclosures in the Annual Accounting Report and the Published Statutory Annual Report Forms, an assessment of the Bank’s accounting principles and techniques used, procedures for preparing the Annual Accounting Report and the Published Statutory Annual Report Forms, an evaluation of significant estimates made by the Bank’s management as well as the overall presentation of the Annual Accounting Report and the Published Statutory Annual Report Forms. We believe that our statutory audit provides a reasonable basis for our opinion on the proper preparation of these Annual Accounting Report and the Published Statutory Annual Report Forms in all material aspects, and on the compliance of the Bank’s accounting

procedures with applicable Russian Federation legislation in all material aspects for the purpose of preparing an annual accounting report and published statutory annual report forms.

4. In our opinion, the Annual Accounting Report and the Published Statutory Annual Report Forms of Open Joint-Stock Company Bank «Vozrozhdenie» attached to this Statutory Audit Report have been properly prepared to present in all material aspects the Bank’s financial position as at 1 January 2006 and the financial results of its operations for the period from 1 January 2005 to 31 December 2005 inclusive in compliance with Russian Federation regulations applicable to the activity of credit institutions in terms of preparation of annual accounting reports and published statutory annual report forms.

29 March 2006

Director of ZAO PricewaterhouseCoopers Audit R. Munn

Auditor(Bank Audit Qualification Certificate No. 024038 dated 26 July 2005, with unlimited validity)N.A. Surova

50

Financial statementsBalance Sheet as of January 1, 2006 (published form)

Item 01.01.2006 01.01.2005

ASSETS

Cash 2 871 409 2 038 639

Funds of credit institutions at the Central Bank of the Russian Federation 5 197 210 1 500 026

Obligatory provisions 922 727 579 215

Funds at credit institutions 1 331 253 1 003 676

Net investments in traded securities 167 194 0

Net loans 34 529 138 23 639 841

Net investments in investment securities held to maturity 2 170 227 205 259

Net investments in securities available for sale 678 044 566 253

Fixed assets, intangible assets and materials 1 478 743 1 240 489

Interest due to the bank 20 889 25 663

Other assets 361 541 262 571

Total assets 48 805 648 30 482 417

LIABILITIES

Loans from the Central Bank of the Russian Federation 0 0

Funds of credit institutions 112 986 323 249

Funds of clients (non-credit institutions) 40 828 022 24 943 152

Deposits of individuals 19 197 979 14 818 504

Debt instruments issued 4 335 182 2 242 354

Interest due by the bank 589 258 250 598

Other liabilities 118 312 232 420

Reserve provision on the possible losses on conditional credit liabilities, other possible losses and on operations with off-shore residents 40 648 12 317

Total liabilities 46 024 408 28 004 090

SOURCES OF EQUITY

Shareholders funds 200 432 200 432

Registered common shares 187 487 167 487

Registered preferred shares 12 945 32 945

Unregistered authorized capital of non-stock credit institutions 0 0

Shares repurchased from shareholders 0 0

Share premium 1 418 691 1 418 691

Revaluation of fixed assets 463 713 443 573

Expenses of subsequent periods and expected payments affecting equity capital 978 836 384 234

Funds and retained profit of previous years at the possession of credit institution (unsettled losses of previous years) 786 199 481 994

Profit (loss) for the reporting period 891 041 317 871

Total sources of equity 2 781 240 2 478 327

Total liabilities 48 805 648 30 482 417

OFF-BALANCE LIABILITIES

Irrevocable liabilities of the credit institution 7 611 100 4 687 601

Guarantees issued by the credit institution 2 024 573 1 212 096

TRUST ACCOUNTS

ASSET ACCOUNTS

Cash 0 0

Securities under trust management 0 0

Precious metals 0 0

Loans granted 0 0

Funds used for other purposes 0 0

Settlements regarding trust management 0 0

Accumulated interest (coupon) income on debt securities paid 0 0

Current accounts 0 0

Expenses for trust management 0 0

Losses from trust management 0 0

LIABILITY ACCOUNTS

Capital in trust 0 0

Settlements regarding trust management 0 0

Accumulated interest (coupon) income on debt securities received 0 0

Income from trust management 0 0

Profit from trust management 0 0

D.L.Orlov


Chief Accountant

thousand Russian roubles

Statement of income as of January 1, 2006 (published form)

Item 2005 2004

Interest received and similar income from:

Funds placed with other credit organizations 140 099 30 971

Loans, granted to the clients (non-credit organizations) 4 213 654 3 418 678

Financial leasing 0 0

Fixed income securities 81 094 46 801

Other sources 10 924 7 644

Total interest received and similar income 4 445 771 3 504 094

Interest paid and similar expenses on:

Attracted funds of credit organizations 14 595 34 042

Attracted funds of clients (non-credit organizations) 1 420 068 1 129 585

Debt securities issued 175 402 134 943

Total interest paid and similar expenses 1 610 065 1 298 570

Net interest and similar income 2 835 706 2 205 524

Net income from operations with securities -41 956 -45 188

Net income from foreign currency operations 155 211 86 837

Net income from operations with precious metals and other financial instruments 28 126 24 505

Net income from revaluation of foreign currency -28 572 737

Commission income 1 551 221 1 049 883

Commission expenses 82 030 64 930

Net income from non-recurring operations -2 387 703

Other net operating income -182 075 -166 155

Administrative and management expenses 2 813 700 2 171 535

Provision for possible losses -92 048 -421 419

Profit before taxation 1 327 496 498 962

Accrued taxes (including income tax) 436 455 181 091

Profit (loss) for the reporting period 891 041 317 871

Item 01.01.2006 01.01.2005

Equity (capital), thousand rubles 4 165 380 3 272 764

Actual capital adequacy level, % 11.0 12.4

Standard capital adequacy level, % 10.0 10.0

Calculated provision for possible losses on loans and similar indebtedness, thousand rubles 1 121 495 1 062 966

Actual provision for possible losses on loans and similar indebtedness, thousand rubles 1 121 497 1 062 966

Calculated provision for possible losses, thousand rubles 32 288 21 090

Actual provision for possible losses, thousand rubles 32 288 21 090

Statement on the capital adequacy level and available provisions for possible losses on

loans and other assets as of January 1, 2006

thousand Russian roubles

D.L.Orlov


Chief Accountant

D.L.Orlov


Chief Accountant

D.L.Orlov


Chief Accountant


Information about the members of the banking (consolidated) group, the level of capital adequacy and the amount of provisions

for doubtful loans and other assets as of January 1, 2006

The consolidated balance sheet, the consolidated income statement have not been prepared, the obligatory standards on consolidated basis have not been calculated as the

influence of the members of the company group was deemed immaterial.

In the opinion of the audit company ZAO PricewaterhouseCoopers the balance sheet, the income statement, the report statement on the capital adequacy level and available provisions for possible losses on loans and other assets and the data on the members of the banking (consolidated) group, the level of capital adequacy and the amount of provisions for doubtful loans and other assets present fairly, in all material respects, the financial position of Open joint-stock company Bank Vozrozhdenie as at 31 December 2005 in accordance with the Russian legislation.

The detailed information on the results of the audit comprising the above data are included in the auditor’s statement on the annual accounting report and prepared on the basis of published forms of the annual report of the credit institution as at January 1, 2006.

Name of the auditing institution: ZAO PricewaterhouseCoopers Audit (ZAO PwC Audit)

Certificate of state registration: №008.890 issued by the Moscow registration chamber on February 28, 1992License No. E000376Date of license issue: May 20, 2002Expiry date of license: May 20, 2007License issuing body: Ministry of Finance of the Russian FederationGeneral Director of audit organisation: Mike KubenaDirector: Richard Mann (authorized to sign the audit report by the power of attorney No. P-0685-0704 dated July 1, 2004)

March 29, 2006

Item Data for reporting

period

Participants of banking (consolidated) group:

Open Joint-Stock Company Vozrozhdenie Bank

Garmoniya, Non-State Pension Fund 100.0

Yunost, Public Joint-Stock Company 55.0

Vozrozhdenie-Finance, Limited Liability Company 100.0

MABV GROUP, Limited Liability Company 100.0

Vozrozhdenie-Nedvizhimost’, Limited Liability Company 99.9

Vozrozhdeniye Finance B.V 100.0

Kane, Non-public Joint-Stock Company 99.0

First Investment Corporation, Non-public Joint-Stock Company 100.0

Kaliningradpromproekt, Public Joint-Stock Company 50.9

Murmansk-VTI, Public Joint-Stock Company 50.8

Baltiyskiy Kurort, Limited Liability Company 51.0

Private Guard Enterprise Vozrozhdenie-Center, Limited Liability Company 100.0

Private Guard Enterprise Vozrozhdenie-1, Limited Liability Company 100.0

Private Guard Enterprise Vozrozhdenie-2, Limited Liability Company 100.0

52

Since the bank operates a nationwide network of branches and performs a wide range of transactions, it operates a centralised risk management system whose primary objectives are to mitigate the risks, set acceptable levels of unavoidable risks, and prevent incidental risks. The bank’s Asset and Liability Management Committee is responsible for the effective management of assets and liabilities on the basis of a reasonable balance between total assumed risks and the rate of return, tight control over capital adequacy indicators, and the determination of the balance structure required to maintain appropriate liquidity levels. Risks are assumed and managed at all levels, but they are coordinated centrally and are subject to approved procedures for transactions and fixed limits.

The bank pursues two objectives in its risk management policy:to prevent the assumption of undue risk, and to mitigate unavoidable risks.

The bank has adopted «Regulations on Risk Evaluation and Management System within Bank Vozrozhdenie (OJSC)», which establishes the goals, tasks and principles of the risk evaluation and management system and classifies and defines the major types of risk. Within the framework of these Regulations the bank has issued a number of internal documents describing the risk management procedures to be followed by the bank’s business units.

Credit exposure

Given that loans remain the primary component of the bank’s assets, the major risk assumed by the bank is connected to the extension of loans. The bank’s loan portfolio is highly diversified both by regions and by sectors of industry. The bank puts together a detailed credit file for each individual borrower, and carefully monitors compliance with the credit exposure limits per borrower or group of associated borrowers.

The bank has implemented the following procedures:

- mandatory regular monitoring of the financial standing of borrowers, and of the economic effectiveness of credited programs and projects;

- impartial evaluation of the liquidity and adequacy of security that has been put up, by appraisal and insurance companies accredited by the bank;

- rating based evaluation of the financial standing of the insurance companies that insure assets put up as security for loans issued by the bank;

- continuous monitoring of borrowers’ discharging of their obligations to the bank;

- evaluation of the quality and extent of the risks associated with loans extended to date;

- procedures for creating provisions to cover possible losses from loans and other transactions;

- procedures for transferring problem loans to the Loan Monitoring Department and the subsequent handling of such loans;

- procedures for determining and monitoring the credit authorities of the bank’s branches, and of the relevant management bodies at head office, that are related to the granting of loans;

- procedures for issuing guarantees, governed by the Regulations on the Procedures for the bank’s Issuing of Guarantees.

Provisions for loan losses (IFRS)

2005 2004 2003

Provision for loan impairment at the end of the year, mln. rubles

1,621 1,456 1,043

Loans outstanding at the end of the year, mln. rubles

32,395 23,511 17,796

including overdue loans, mln. rubles

441 781 1 129

Overdue loans / total loans, % 1.36% 3.32% 6.34%

Provision for loan impairment / total loans, %

5.00% 6.19% 5.86%

Provision for loan impairment / overdue loans, %

368% 186% 92%

Risk management

otherindividualsadministrationstradefinancetransportconstructionagriculturemanufacturing

Trends of loan portfolio diversification

Overdue loans & provisions

actual write-offsproblem loansprovisionsprovisions/problem loans (RHS)

Risk management

Liquidity risk

The bank has drawn up a liquidity evaluation and management policy that establishes the fundamental concepts, tasks and methods of liquidity management, evaluation methods and the division of duties in the bank’s liquidity management.

The bank maintains a liquidity risk that is necessary for the reliable management of the bank’s assets and liabilities and that guarantees that we will always be able to meet our obligations to depositors and other creditors. The bank complies with all the Bank of Russia’s requirements with

Central Bank

Standard, %

Actual figures, %

01.01.06 01.01.05 01.01.04

Ratio of highly liquid assets to liabilities payable on demand, N2 min. 15% 50.1 36.3 57

Ratio of liquid assets to total liabilities on-demand and with maturity of less than 30 days, N3

min. 50% 63.8 50.7 90.5

Ratio of all indebtedness to the bank with remaining maturity exceeding one year to total amount of bank’s equity and liabilities with remaining maturity exceeding one year, N4

max. 120% 105.6 79.3 57.9

54

respect to the limits on immediate, current and long term liquidity, as established by its Guidelines on Mandatory Requirements for Banks № 110-I of 16/01/04, and maintains even greater limits.

Liquidity risk is managed by coordinating the maturities of the assets invested and liabilities raised by the bank. The Asset and Liability Management Committee continuously monitors the liquidity risk management process.

Bank’s liquidity position

Assets with maturity of Liabilities with maturity of Net liquidity gap Ratio of net

liquidity gap

with maturity

up to 1 month

to the amount

of liabilities

with maturity

up to 1 month

less

than 1

month

1 - 6

month

6 - 12

month

more

than 12

month

no

stated

maturity

less

than 1

month

1 - 6

month

6 - 12

month

more

than 12

month

no

stated

maturity

less

than 1

month

1 - 6

month

6 - 12

month

more

than 12

month

no

stated

maturity

31.12.2003 8,127 10,170 6,500 3,253 2,577 11,452 6,765 2,829 6,894 83 -3,325 3,405 3,671 -3,641 2,494 -29,0%

31.12.2004 7,389 10,815 6,877 3,548 1,998 11,535 6,765 2,829 6,894 0 -4,146 4,050 4,048 -3,346 1,998 -35,9%

31.12.2005 17,655 11,449 12,671 4,591 2,743 21,444 11,071 10,905 2,416 0 -3,789 378 1,766 2,175 2,743 -17,7%

2005 share 2004 share 2003 share

Customer accounts

Current/settlement accounts of legal entities 10,780 24.3% 6,924 25.7% 8,156 34.8%

Term deposits of legal entities 4,408 9.9% 2,472 9.2% 3,804 16.3%

Current/demand accounts of individuals 5,690 12.8% 3,521 13.1% 2,532 10.8%

Term deposits of individuals 19,234 43.4% 11,497 42.7% 7,973 34.0%

Total customer accounts 40,112 90.4% 24,414 90.7% 22,465 95.9%

Due to other banks

Current term placements of other banks 92 0.2% 316 1.2% 29 0.1%

Correspondent accounts of other banks 21 0.1% 7 0.03% 64 0.3%

Total due to other banks 113 0.3% 323 1.2% 93 0.4%

Debt securities in issue

Promissory notes 3,764 8.5% 1,458 5.4% 751 3.2%

Deposit certificates 367 0.8% 729 2.7% 126 0.5%

Total debt securities in issue 4,131 9.3% 2,187 8.1% 877 3.7%

Total funds 44,356 100% 26,924 100% 23,435 100%

Funds structure

million rubles

million rubles

Market risk

The Asset and Liability Management Committee also monitors the market risk management process. The Committee determines the scope and structure of the securities portfolio, with a view to extracting profit and maintaining the required level of liquidity.

As the total balance sheet value of the bank’s trading portfolio exceeds 6% of the total balance sheet assets, the cumulative market risk indicator determined on the basis of interest, stock exchange and foreign exchange risks in accordance with the “Regulations on the Procedures for the Calculation of Market Risks by Lending Institutions” №89-P, issued by the Bank of Russia on 24/09/1999, is included in the calculation of capital adequacy limits (N1).

Foreign currency risk

When undertaking foreign exchange transactions the bank strictly complies with the requirements set out in the «Guidelines on the Implementation of Limits for an Open Foreign Exchange Position and Compliance Monitoring by Authorised Banks of the Russian Federation» № 41, issued by the Bank of Russia on 22/05/96.

The primary currency of foreign exchange transactions is the US Dollar. The capital based foreign currency position, which is the value of foreign currency assets acquired in the course of forming the registered capital, amounts to USD 18 million.

To assess the risk associated with the maintenance of open foreign currency positions, the bank applies the methodology of the Bank of Russia that is set out in the «Regulations on the Procedures for the Calculation of Market Risks by Lending Institutions» № 89-P of 24/09/99. When appraising the foreign currency risk, the bank pays attention to the quality of the assets denominated in each currency, and in particular, to the quality of the credit portfolio.

The management of foreign currency risk is centralised, with a special purpose business unit at the head office in charge of determining open foreign currency position limits for each business unit or branch of the bank and monitoring compliance. In this way, the bank can easily control the acceptable levels of foreign currency risks at the head office and the bank’s branches. These limits must be approved by the Deputy Chairman of the Bank’s Management Board.

Risk management

EURUSD

Dynamic of EUR/RUR and USD/RUR rates

Inflation risk

To keep inflation risk under control, the bank regularly reviews the rates pertaining to resources raised and invested, in accordance with the «Guidelines of Fundamental Principles for Management of Resources of Bank Vozrozhdenie (OJSC)».

Insolvency risk

The management of insolvency risk is based on compliance with the limits for the adequacy of the bank’s equity (N1), which is the ratio between capital and assets weighted against the risk associated.

56

Functional risks (strategic risk, technology based risk), and

the risk associated with the introduction of new products and

technologies (novelty based risk)

The strategic risk resulting from a bank management strategy that is poorly established or out of step with market conditions is assessed and managed by the bank’s highest management bodies, such as the Supervisory Council and the Management Board. The bank’s highest management bodies and committees (such as the Credit and Investment Committee and the Asset and Liability Management Committee) are responsible for monitoring, implementing and overseeing the bank’s strategic initiatives.

The methods used for appraising and managing strategic risk include risk monitoring, risk diversification, scenario analysis, and risk control.

The Department for Banking Technologies, a separate business unit of the bank, is responsible for appraising and managing technology based risk and the risk associated with the introduction of new products and technologies. All technological solutions developed and implemented by the bank have to be documented. The documentation of the various different processes and procedures is performed in accordance with the ARIS methodology, which is a system and process based corporate process description standard that enables comprehensive classification and identification.

New technologies, hardware and software are normally subject to checks and mandatory prior testing, which must be documented. New technologies, hardware and software are always tested for compliance with internal and external requirements in the sphere of information protection and information security.

The software systems used by the bank have to be duly registered and recorded. The bank has made it impossible to use unregistered software and hardware, and technological solutions that have not been certified.The methods used for appraising and managing technology based risk and the risk associated with the introduction of new technologies include risk monitoring, risk combination, risk distribution, risk diversification, scenario analysis, and risk control.

Inefficiency risk

Inefficiency risk is connected to the discrepancy between the bank’s operating expenses and revenues. To minimise this type of risk, the bank has implemented a budgeting system. This system makes it possible to identify the most costly and inefficient operations as early as the planning stage, adjust tariff policy, and determine the priorities of client policy. Such steps help to ensure that the growth of non-interest income always outstrips the growth of non-interest expenses.

Background information

Offices of Vozrozhdenie Bank

If you would like to know more about Vozrozhdenie Bank, you are very welcome to come and talk to us. Visit our nearest branch. We look forward to meeting you.

Contact details of Vozrozhdenie Bank:Bank Identification Code (BIC): 044525181Tax Identification number (INN): 5000001042Correspondent account with OPERU of Moscow GTU of the Bank of RussiaN 30101810900000000181

Call-center:8-800-200-9-888 (calls inside Russia are free of charge)+7-495-777-08-88, + 7-495-620-18-88

Fax: + 7-495-620-19-99Telex: 414680VBNK RUЕ-mail: [email protected]: http://www.vbank.ruWap: wap.vbank.ruSWIFT: VBNKRUMMREUTER DEALING: VOZMSPRINT: VOZROGD.MOSC/CEA

Elena Tishina

Barnaul

When our twins Kirill and Daniel were born it was the happiest moment in our family’s life. But we soon started thinking about how crowded it would be in our flat once they started growing up. The only way of exchanging our flat for a bigger one was to get a mortgage. We opted for Vozrozhdenie Bank, as I had come across the bank in my business dealings. When

we found a suitable five room flat, we were afraid that we wouldn’t manage to process all the documents in time, but the bank’s employees were brilliant. Now that our kids are 18 months old, each of them has his own room.


Central Branch

7/4, bldg. 1, Luchnikov Pereulok, GSP-9, Moscow, 101999Tel: (495) 620-1882Mr. Mikhail T. Goghia

Ilyinsky

7, Leningradsky Prospekt, Moscow, 125040Tel: (495) 725-6137Mr. Vakhtang Y. Djariani

Ostankinsky

31, bldg. 2, Obraztsova Street, Moscow, 127018Tel: (495) 689-1166Ms. Natalia V. Barkhotkina Ulyanovsky

33, bldg. 4, Vesiolaya Street, Moscow, 115541Tel: (495) 325-0616Ms. Tatiana B. Sukhotskaya

Additional Offices:

Gorky Kolkhoz Building, Molokovo 142714, Leninsk District, Moscow RegionTel: (495) 549-1130

50, Sovetskaya Street, flat 1, Vidnoye 142700, Leninsk District, Moscow RegionTel: (495) 541-7845

78, Leninskogo Komsomola Pr-t, Vidnoye, 142700, Leninsk District, Moscow RegionTel: (495) 541-7845

Balashikha

45, Prospekt Lenina, Balashikha, 143907Tel: (495) 525-6048Ms. Lyubov N. Yukhareva

Additional Office:4, bldg. 2, Savvinskoye Shosse, Zheleznodorozhniy, 143986Tel: (495) 520-3542

Bronnitsy 52, Novo-Bronnitskaya Street, Bronnitsy, 140170Tel: (49646) 6-5439Ms. Zinaida N. Shepeleva

Operational Cash Desk:53, bldg. 1, Komsomolskiy Per., Bronnitsy, 140170Tel: (49646) 6-8939

Chekhov

22, Chekhova Street, Chekhov, 142300Tel: (49672) 2-1893Ms. Raisa P. Petrykina

Operational Cash Desk:8, Vishniovyi Bulvar, Chekhov, 142300Tel: (49672) 3-5346

Dmitrov

1, Sovetskaya Pl., Dmitrov, 141800Tel: (495) 993-9342Mr. Vitaly М. Soloviov

Additional Offices:

25, Bogolubova Pr-t, Dubna, 141980Tel: (495) 745-8989

17, Karla Marksa Pl., Taldom, 141900Tel: (49620) 6-0031

Domodedovo

54a, Kashirskoye Shosse, Domodedovo, 142040Tel: (495) 546-8750Ms. Tatiana А. Fomicheva

Operational Cash Desk:der. Zaborje, 142072, Domodedovo DistrictTel: (495) 546-8750, (49679) 4-3720

Egorievsk

106/5, Sovetskaya Street, Egorievsk, 140300Tel: (49640) 4-3392Ms. Lyudmila V. Baykova

Elektrostal

16, Pobedy Street, Elektrostal, 144007Tel: (49657) 7-0809Ms. Natalia А. Gnedkova

Additional Offices:

1, Karla Marksa Street, Elektrostal, 144001Tel: (49657) 5-4946

21, Krasnaya Street, Elektrostal, 144005Tel: (49657) 4-6624

Istra

81, Lenina Street, Istra, 143500Tel: (495) 994-5441Ms. Vera А. Ulitina

Additional Office:19, Yubileynaya Street, Istra, 143500Tel: (49631) 3-0534

Kashira

12, Sovetskaya Street, Kashira, 142900Tel: (49669) 3-1984Ms. Tatiana А. Murashkina

Khimki

22/1, Moskovskaya Street, Khimki, 141400Tel: (495) 573-0364Ms. Natalia I. Shabunina

Additional Offices:

3, Babakina Street, Khimki, 141407Tel: (495) 790-7930

2, Moskovskaya Street, Novopodrezkovo, 141431, Khimki DistrictTel: (495) 573-0364 (301)

Operational Cash Desks:

22/1, Moskovskaya Street, Khimki, 141400Tel: (495) 573-0364 (110, 132)

12a, Lavochkina Street, Khimki, 141400 (payments to address of Motor Licensing and Inspection Department)Tel: (495) 573-0364 (401)

20a, Mayakovskogo Street, Khimki, 141400 (payments to address of the organizations)Tel: (495) 573-0364 (133)

KIin

8a, Karla Marksa Street, KIin, 141600Tel: (49624) 2-6698Ms. Olga N. Kalenova

Kolomna

340, Oktyabrskoy Revolutsii Street, Kolomna, 140408Tel: (4966) 12-5523Ms. Lyudmila V. Dorkina (Deputy Branch Manager)

Additional Office:15, Kirova Proezd, Kolomna, 140411Tel: (4966) 14-3651

Krasnogorsk

38b, Lenina Street, Krasnogorsk, 143400Tel: (495) 563-4650Ms. Irina L. Zlenko

Additional Offices:

der. Goljevo, 143400, Krasnogorsk -5Tel: (495) 561-0825

8, Rechnaya Street, Krasnogorsk, 143400Tel: (495) 564-1184


21a, Lenina Street, Krasnogorsk, 143400Tel: (495) 563-8832

8, Rechnaya Street, Krasnogorsk, 143400Tel: (495) 561-8055

GIBDD, Raitsentr-3, Krasnogorsk, 143400Tel: (495) 564-7688

26, Zavodskaya Street, Krasnogorsk, 143400Tel: (495) 562-8863

Kurovskoye

52, 40 Let Oktiabria Street, Kurovskoye, 142640Tel: (4964) 11-6212Ms. Marina S. Okuneva

Additional Office:3, Tsentralny Bulvar, Orekhovo-Zuevo, 142600Tel: (4964) 16-1076

Lotoshino

2, Pochtovaya Street, Lotoshino, 143800Tel: (49628) 1-0164Ms. Marina A. Bombach (Deputy Branch Manager)

Lukhovitsy

4, Gorkogo Street, Lukhovitsy, 140500Tel. (49663) 2-4903Mr. Viktor V. Goncharov

Lyubertsy

3, Krasnoarmeiskaya Street, Lyubertsy, 140005Tel. (495) 559-9472Ms. Lydmila В. Edykova

Additional Office:6, Dmitria Donskogo Pl., Dzerzhinskiy, 140091Tel. (495) 551-5065

Mikhnevo

1, Gorkogo Street, Mikhnevo, 142840Tel. (49664) 7-1937Ms. Galina V. Sapronova

Mozhaisk

4, Krasnyh Partizan Street, Mozhaisk, 143200(49638) 4-4144Ms. Evdokia I. Kovbasenko

Additional Office:93, Mira Street, Mozhaisk, 143200Tel. (49638) 2-1806

Naro-Fominsk

9, Marshala Zhukova Street, Naro-Fominsk, 143300Tel. (495) 592-1809Ms. Nadezhda V. Morozova

Additional Office:65, Aprelevskaya Street, Aprelevka, 143360Tel. (495) 436-5122

Noginsk

81, Rogozhskaya Street, Noginsk, 142400Tel. (495) 524-5258Ms. Natalia U. Makarova

Additional Office:6, Bolshoi Zheleznodorozhny Proezd, Pavlovsky Posad, 142500(49643) 2-3133

Odintsovo

16, Marshala Zhukova Street, Odintsovo, 143000Tel: (495) 593-5629Ms. Rimma N. Pankova

Additional Office:1, Svobody Street, Odintsovo, 143000Tel: (495) 590-7500

Podolsk

11, Kirova Street, Podolsk, 142100Tel: (495) 333-8401Ms. Valentina А. Ryl’kova

Operational Cash Desk:38, Pravdy Street, Podolsk, 142115Tel: (4967) 68-1595

Pushchino

Mikrorayon G, Pushchino, 142290Tel: (495) 795-2029Ms. Olga P. Beletskaya

Additional Office:33/5/2, bldg. 1, Gagarinsky Per., Moscow, 119002Tel: (495) 246-0879

Offices in Moscow City

60

Offices in Moscow Region

Vozrozhdenie Bank in Russian Regions


Operational Cash Desk:20, Mikrorayon G, Pushchino, 142290Tel: (4967) 33-0504

Pushkino

11, Moskovsky Prospekt, Pushkino, 141200Tel: (495) 993-5859Ms. Tatiana V. Miklyaeva

Additional Offices:

32, Pervomayskaya Street, Ivanteyevka, 141250Tel: (49653) 6-2440

3, Sharapovsky Pr., Mytischi, 141006Tel: (495) 586-4531

17, Sadovaya Street, Pravdinsky, 141200Tel: (49653) 1-5560

Ramenskoye

3, Krasnoarmeyskaya Street, Ramenskoye, 140100Tel: (495) 556-6994Ms. Tatiana А. Kostikova

Additional Office:18/11, Lomonosova Street, Zhukovskyi, 140180Tel: (49648) 4-8330

Ruza

27, Sotsialisticheskaya Street, Ruza, 143100(495) 598-1709Ms. Irina G. Potapova

Operational Cash Desk:27, Sotsialisticheskaya Street, Ruza 143100Tel: (49627) 2-4234

Sergiev Posad

52, Krasnoy Armii Prospekt, Sergiev Posad, 141300(495) 921-0158Ms. Tamara D. Teslya

Operational Cash Desk:51, bldg. 1, Novo-Uglichskoe Sh., Sergiev Posad, 141300Tel: (49654) 7-0532

Serpukhov

3b, Gorkogo Street, Serpukhov, 142203Tel: (4967) 75-0085Ms. Marina А. Grosh

Shatura

6, Sportivnaya Street, Shatura, 140700Tel: (49645) 2-1709Ms. Yekaterina N. Tarasova

Additional Office:14, Kosyakova Street, Roshal, 140730Tel: (49645) 5-2406

Shchiolkovo

5, Lenina Pl., Shchiolkovo, 141100Tel: (495) 526-9341Mr. Sergei N. Nikolaev


9a, Polevaya Street, Fryazino, 141120Tel: (49656) 7-2678

1a, Talsinskaja Street, Shchiolkovo, 141100Tel: (49656) 9-2102

Solnechnogorsk

1, Baranova Street, Solnechnogorsk, 141500Tel: (495) 994-0756Ms. Nina P. Aksionova

Operational Cash Desk:63th km of Leningradskoe shosse, Solnechnogorsk, 141500Tel: (495) 994-0277

Stupino

56/30a, Andropova Street, Stupino, 142800Tel: (49664) 7-5970Ms. Zinaida G. Kulikova

Additional Offices:

bldg. 1, Promyshlennaya Street, Malino, 142850, Stupino DistrictTel: (49664) 5-5474

26, Pobedy Pr-t, Stupino, 142800Tel: (49664) 4-2475

Operational Cash Desk:21, Andropova Street, Stupino, 142800Tel: (49664) 7-1453

Volokolamsk

10, Oktiabrskaya Pl., Volokolamsk, 143600(49636) 2-2472Ms. Aleksandra P. Vasyukova

Additional Office:36, 1st Sovetskaya Street, Shakhovskaya, 143700Tel: (49637) 3-3441

Operational Cash Desk:6, Nerudnaya Street, Sychevo, Volokolamsk District, 143611Tel: (49636) 2-2145

Voskresensk

34, Pobedy Street, Voskresensk, 140200Tel: (49644) 2-7009Ms. Tamara P. Matvienko

Additional Offices:

1, Rossiyskaya Street, Beloozersky, 140250, Voskresensk DistrictTel: (49644) 5-1264

14, Kolomenskaya Street, Voskresensk-3, 140200Tel: (49644) 3-3225

Operational Cash Desk:JSC Voskresensk-Lada premises, Novlyansky Block, Voskresensk, 140200Tel: (49644) 1-2537

Zaraisk

1, Uritskogo Pl., Zaraisk, 140600Tel: (49666) 2-5832Ms. Galina N. Shmatkova

Additional Office:4, Yubileyny Mikrorayon, Serebryanye Prudy, 142970Tel: (49667) 3-1333

Zvenigorod

10, Pochtovaya Street, Zvenigorod, 143180Tel: (495) 992-5467Ms. Tamara N. Starostina

Barnaul

43a, Avtotransportnaya Street, Barnaul, 656064, Altayskiy KrayTel: (3852) 46-8620Ms. Tatiana V. Malakhova

Additional Office:14, Brestskaya Street, Barnaul, 656015, Altaysky KrayTel: (3852) 61-9471

Kaliningrad

12, Sovestky Prospekt, Kaliningrad, 236000Tel: (4012) 27-9306Ms. Tamara N. Konoplina

Khabarovsk

10, Dikopoltseva Street, Khabarovsk, 680013Tel: (4212) 42-8341Mr. Gleb E. Klimenko

Additional Offices:

210, Prospekt 60 let Oktyabrya, Khabarovsk, 680014Tel: (4212) 72-8740

19, Molodogvardeyskaja, Komsomolsk-on-Amur, 681000Tel: (4217) 59-1112

Operational Cash Desk:43, Dzerzhinskogo Street, Khabarovsk, 680000Tel: (4212) 74-7828

Krasnodar

324, Severnaya Street, Krasnodar, 350000Tel: (861) 211-1191Ms. Irina G. Chudinova

Magadan

3, Portovaya Street, Magadan, 685024Tel: (41322) 2-2811Ms. Aleksandra А. Usacheva

Makhachkala

4, Pushkina Street, Makhachkala, 367012, Dagestan RepublicTel: (8722) 67-8459Ms. Natalia В. Pavlova

Murmansk

110a, Kol’sky Prospekt, Murmansk, 183038Tel: (8152) 24-6300Mr. Valery F. Lysenkov

Additional Office:23, Knipovicha Street, Murmansk, 183038Tel: (8152) 47-8016

Nizhny Novgorod

106a, Belinskogo Street, Nizhny Novgorod, 603006Tel: (8312) 78-7662Ms. Natalya V. Morozova

Additional Offices:

1, Efremova Street, Nizhny Novgorod, 603003Tel: (8312) 25-3380

1b, Vedenyapina Street, Nizhny Novgorod, 603016 Tel: (8312) 93-8143

Novorossiysk

32, Engel’sa Street, Novorossiysk, 353900, Krasnodarskiy KrayTel: (8617) 61-0400Mr. Alexandr N. Metelitsa

Petrozavodsk

Р.О. Вох 29, 15, Andropova Street, Petrozavodsk, 185028, Republic of KareliaTel: (8142) 76-9858Mr. Valery P. Volkhov

Rostov-on-Don

97/243, Budionovsky Prospekt, Rostov-on-Don, 344011Tel: (863) 244-2753Ms. Jana V. Gamaley

Additional Offices:

161/2, Taganrogskaya Street, Rostov-on-Don, 344016Tel: (863) 277-3241

20/1, Sovetskaya Street, Rostov-on-Don, 344019Tel: (863) 263-3486

30, Kommunisticheskiy Pr-t, Rostov-on-Don, 344091Tel: (863) 224-9694

Saransk

99a, Gagarina Street, Saransk, 430027, Republic of MordoviaTel: (8342) 32-0245Mr. Sergey V. Naumkin

Offices in Moscow Region

63

Offices in Other Regions of Russia

Vozrozhdenie Bank in Moscow Region

Additional Office:33/1, Kommunisticheskaya street, Leninsky district, Saransk, 430000, Republic of MordoviaTel: (8342) 23-1805

St. Petersburg

60, 9th Liniya Vasilievskogo Ostrova, St. Petersburg, 199004Tel: (812) 320-4290Mr. Igor I. Kaplenov

Stavropol

3/1a, Karla Marksa Pr-t, Stavropol, 355008Tel: (8652) 28-2222Ms. Tatiana N. Adamenko

Additional Offices:

1, 123/per. Kirova, 357600, EsentukiTel: (87934) 2-4481

43, Dzerzhinskogo Pr-t, Kislovodsk, 357003Tel: (87937) 5-0229

45, Prospekt Kirova, Pyatigorsk, 357500Tel: (87933) 9-3580

26a Yunosti Pr-t, Stavropol, 355044Tel: (8652) 38-5871

Operational Cash Desk:10/12, Oktjabrskojy Revolutsii Pr-t, Stavropol, 355000Tel: (8652) 29-6406

Tula

5a, Revolutsii Street, Tula, 300034Tel: (4872) 30-8290Ms. Aleftina V. Timoshenkova

Volgodonsk

38а, Velikoy Pobedy Bulvar, Volgodonsk, 347371, Rostov RegionTel: (86392) 2-8929Mr. Alexey D. Petrakov

Additional Offices:

21, Stroiteley Pr-t, Volgodonsk, 347382Tel: (86392) 6-6148

75, Gagarina Street, Volgodonsk, 347386Tel: (86392) 3-4114

60, Lenina Street, Volgodonsk, 347360Tel: (86392) 6-1177

124, Morskaja Street, Volgodonsk, 347381Tel: (86392) 7-8768

131/1 Lenina Street, Semikarakorsk, 346630, Rostov RegionTel: (86356) 2-2302

33b, Sovetskaya Street, Tsimlyansk, 347320, Rostov RegionTel: (86391) 5-0941

Volgograd

11, Nevskaya Street, Volgograd, 400087Tel: (8442) 32-1253Ms. Sofia В. Zhilina

Additional Offices:

20, Prospekt im. V. I. Lenina, Volgograd, 400131Tel: (8442) 33-9242

9, Engelsa Bulvar, Volgograd, 400112Tel: (8442) 61-0086

97, Lenina Prospekt, Volzhsky, 404120, Volgograd Region(8443) 27-6036

Yaroslavl

2, bldg. 2, Pushkina Street, Yaroslavl, 150000Tel: (4852) 72-7635Mr. Aleksander S. Khabarin

Representative Office in Kaluga

1, Kirova Street, Kaluga, 248001Tel: (4842) 54-8656Ms. Valentina V. Tsarapkina

North-West regional Centre

80, Bolshoy Prospekt Vasilievskogo Ostrova, St. Petersburg, 119106Tel: (812) 322-2401Mr. Uriy I. Novikov

Offices in Other Regions of Russia


Bank Vozrozhdenie (OJSC)

7/4, Luchnikov pereulok, bldg. 1, Moscow, GSP, 101990, Russia

+ 7-495-777-0-888

8-800-200-9-888 (toll-free)

www.vbank.ru

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