Annual report 2010

11Payment for the placed Bonds shall be made in cash in the currency of the RussianFederation by ba nk transfer. Pa yment for the Bonds m ay n ot be m ade ininstallments. Other t erms a nd c onditions of the placement of the Bonds a recontained in the Decision on the Securities Issue and the Securities Prospectus.Any expenses in connection with making credit entries for initial holders’(acquirers’) pl aced s ecurities d eposited i n a c ustody acco unt w ith a d epositary(responsible for the centralized custody of the Bonds) shall be paid by such initialholders of the Bonds.Income from the Bonds sha ll be pa id i n t he f orm of i nterest on t he p arvalue of t he B onds. Inc ome fr om t he B onds sha ll be pa id fo r c ertain p eriods(coupon periods). The number of coupon periods is ten (10).The redemption dat e fo r t he Bon ds i s t he on e hu ndred, ei ght hundredtwentieth (1,820th) day after the start date of the placement (hereinafter, the “BondRedemption Date”). The Bonds shall be redeemed and income related thereto shallbe paid in cash in the currency of the Russian Federation by bank transfer in favorof holders of the Bonds. N o h older of t he B onds m ay c hoose a ny redemptionmethod for the Bonds. The Bonds shall be redeemed and coupon income relatedthereto shall be paid by a paying agent acting on the instructions and at the expenseof the Issuer (hereinafter, the “Paying Agent”) on the Bond Redemption Date. Ifthe Bond Redemption Date falls on a nonbusiness day, whether a public holiday ora day on which settlement operations are not conducted, then the amount due shallbe paid on the first business day following such nonbusiness day. No holder of theBonds shall be entitled to demand that interest accrue or any other compensationbe paid for s uch de lay in payment. T he Paying Agent shall, on t he BondRedemption Date, pay the amounts due by bank transfer into the accounts of thepersons a uthorized to receive t he redemption v alue of t he B onds in favor o f t heholders of the Bonds specified in the List of Holders and/or Nominee Holders ofthe B onds. I n t he e vent t hat one pe rson i s a uthorized b y se veral ho lders o f t heBonds to receive the redemption value of the Bonds, then the total amount shall bepaid to such p erson w ithout be ing broken d own i nto a mounts pa yable t o eachholder of t he Bonds. The start date and end date for the redemption of t he Bondsshall fall on the same day.The Bonds are redeemable earlier at the request of their holders and at theoption of the Issuer.Any holder of the Bonds shall have the right to demand that the Bonds beredeemed earlier and such holder receive the accrued coupon income related to theBonds and calculated as of the date of performance of the obligations to redeemthe Bonds e arlier i f t he B onds a re de listed fr om a ll of t he st ock exchanges t hathave i ncluded t he B onds on t heir qu otation l ists, provided t hat t he B onds w erepreviously included on Quotation List V on any of the stock exchanges.Any holder of the Bonds shall also have the right to demand that the Bondsbe redeemed earlier and such holder receive the accrued coupon income related tothe Bonds if:- the performance by the Issuer of its obligations to pay any coupon incomerelated to the Bonds is delayed for more than seven (7) business days from the due