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Investor Presentaiton

Sources CMU, NBU, Naftogaz, EC, IMF Financial sector Energy sector Key areas Challenging reforms start bearing fruit (2/2) Monetary policy: inflation-targeting framework ▸ Banking sector: sector clean-up, currency controls liberalization ▸ NBU role: enhancement of the NBU'S supervisory and regulatory role Energy sector diversification: intensified domestic extraction and complete substitution of Russia in favor of the EU for gas imports since late 2015 Liberalization of energy markets: transition of electricity market to European model, increase in levels for gas and heating tariffs, elimination of operational deficit of Naftogaz of Ukraine "The new Stand-By Arrangement will provide an anchor for the authorities' efforts to address the impact of the crisis, while ensuring macroeconomic stability and safeguarding achievements to date. The program will focus on safeguarding medium-term fiscal sustainability, preserving central bank independence and the flexible exchange rate, and enhancing financial stability while recovering the costs from bank resolutions" Ms. Kristalina Georgieva, Managing Director and Chair of the IMF June 9, 2020 2019-2020 update Banking law adopted (May 2020) ⚫ Draft AML Law implementing 5th EU AML Directive became effective (Apr 2020) Law on split of supervisory functions between financial markets regulators ("Split Law") adopted (Sep 2019) . New liberalized currency regulation system (Feb, Sep 2019) Unbundling of Naftogaz gas transmission system completed (Jan 2020) Receipt of compensation by Naftogaz following its victory over Gazprom in Stockholm Arbitration (Dec 2019) Bringing gas prices for households closer to market level (Apr 2019) Selected results UAH 60bn record high profits posted by the Ukrainian banking sector in 2019 20+ FX restrictions lifted 105 banks withdrawn from the market over 2014-2019 US$ 2.9bn received as compensation from Gazprom in Stockholm Arbitration 14.9 bn m3 of gas volume extracted by SOE Ukrgazvydobuvannia in 2019 "The Ukrainian authorities have made progress with reforms over the past year, notably in areas that will help to create the foundations for future growth and prosperity for Ukrainian citizens. Many newly adopted laws now await implementation, and the European Union will continue to be there to accompany this process" Mr. Oliver Varhelyi, EC Commissioner for the Neighbourhood and Enlargement December 13, 2019 July 2020 38
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