On 13 April 2012 the new Regulation on Consolidation and Subdivision of Shares in Joint Stock Companies (the "New Regulation") adopted on 6 March 2012 by the Ukrainian National Commission on Securities and Stock Market (the "Commission") became effective and replaced the old Regulation on Registration of Shares in the Course of Change of Nominal Value and Quantity of Shares without Change of the Share Capital Amount approved by the Commission on 14 September 2000.

The New Regulation has significantly improved the share consolidation and subdivision procedure bringing it in compliance with the following two important requirements of the Law of Ukraine on Joint Stock Companies effective from 30 April 2009:

• consolidation or subdivision is allowed only for shares existing in non-documentary form; and
• consolidation or subdivision is not a ground for shareholders to require mandatory buyout of their shares by the issuer.

Besides, the New Regulation established a clear and logical share consolidation and subdivision procedure removing certain obstacles from registration of the new share issue and completion of related operations in the depositary system. As an important example, exchange of old shares for written commitments to deliver the new shares and exchange of such written commitments for newly issued shares, applicable only to consolidation and subdivision of shares in documentary form, are now excluded from the relevant procedure.