OREANDA-NEWS. December 24, 2010. In view of the publication by the Vedomosti newspaper of the article entitled "Unmanageable assets" giving incorrect information concerning the Bank of Moscow, with the author of the article quoting the top management of the VTB Bank, the Bank of Moscow offers its official response to this publication below.

The statements and allegations regarding the structure and principles, as well as the assessment of the financial situation of the Bank of Moscow offered in the article with reference to the VTB Bank top management are not in line with reality. We believe that public commenting on the operation of any company, particularly when such conclusions are based on unreliable evidence, are in contravention with the principles of business ethics and serve the sole purpose of misleading users of such information.

In conformance with the common standards of business ethics, the management of the Bank of Moscow does not believe it appropriate to provide public comments on the various aspects of operation of either the VTB Bank, or any other organisation.

The Bank of Moscow most emphatically rejects the following allegations made in the article citing the top managers of the VTB Bank:

1. Re the allegations to the effect that the Bank of Moscow has no accountability before the Moscow government

The Moscow government is the major shareholder of the Bank of Moscow. There have been no major changes in the Bank’s shareholding structure over the recent years and the latter is described in detail in the Bank’s financial reports and memoranda, all of which are available to the public. The principal blocks of shares are held by the Moscow government, Capital Insurance Group (Open Joint-Stock Company) and the Bank’s top management. More information about the ultimate beneficiaries can be found at www.bm.ru/en/ir/shareholder_information/shareholder_structure/.

In compliance with the regulatory requirements, information about persons whose decisions may have substantial influence on resolutions and decisions by the management bodies of the Bank of Moscow can be found on the Bank’s webpage at www.bm.ru/en/ir/shareholder_information/shareholder_structure/.

2. Re the allegations concerning the overdue debt amount

The Bank’s entire credit portfolio was based on uniform commercial principles, providing both stringent risk control and solid collateral. The rates of growth of this overdue debt and its actual amount have been lower than those of the Bank’s competitors all through the history of its operation. This is due to the extremely conservative methods pursued by the Bank in its risk management.

The reliability and credibility of such methods of risk assessment have been confirmed by numerous auditor statements and reports of rating agencies.

3. Re the Bank ’ s auditor

BDO Group Russia is part of the international BDO network which ranks the fifth in the global rating of independent audit and consulting companies. Its services are on demand with a number of major international companies and state corporations.

4. Re dependence on the clients funds associated with the city of Moscow

The current share of budgetary resources of the city of Moscow in the liabilities of the Bank of Moscow is approximately 12%. Considering the availability of liquid assets the amount of which is several times higher than the amount of budgetary resources, it appears hardly appropriate to speak of any significant, let alone critical, dependence of the Bank of Moscow on these resources. Relevant data can be found in the Bank’s official financial statements, and valid conclusions can therefore be made by any competent bank analyst.

We therefore believe that the statements and allegations made in the article entitled "Unmanageable assets" containing alleged quotations by the VTB Bank management were aimed at causing depreciation of the shares of the Bank of Moscow, especially considering the repeated declarations by the VTB Bank of its intention to acquire a share in our Bank’s capital.

We believe that initiating negotiations with all interested parties would have been a far more efficient tactic on the part of the potential buyer.