Issue of Debt

NOT FOR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE RUSSIAN FEDERATION.

October 5, 2012

VTB Announces Pricing of its Subordinated Lower Tier 2 Notes

On October 4, 2012, JSC VTB Bank ("VTB") successfully priced an offering of U.S.$1.5 billion 6.95% Subordinated Loan Participation Notes (the "Notes") due 2022 to be issued under its Programme No.2 for the Issuance of Loan Participation Notes.

The Notes will be issued by VTB Capital S.A., Luxembourg and are expected to be listed on the Irish Stock Exchange. The proceeds of the Notes will be used to fund a subordinated loan to VTB to further strengthen its capital base. Once the Central Bank of Russia approves the issue, the subordinated loan will be included in VTB's additional capital.

Barclays Bank PLC, Merrill Lynch International, Societe Generale and VTB Capital served as Joint Lead Managers for the Offering.

Herbert Moos, Deputy Chairman of the Management Board and Chief Financial Officer of VTB said: "This deal marks by far the largest of its kind for Russian and CIS borrowers and represents an important milestone for the market. The superb quality and size of the book, which was almost 5 times oversubscribed, coupled with diversified distribution, achieving an impressive 6.95% yield, and translating into a tight senior-subordinated yield curve differential, reaffirm a remarkable result particularly for a subordinated transaction."

These materials are not an offer for sale of securities in the United States. Securities may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")) absent registration under the Securities Act, or an exemption from registration under the Securities Act. VTB has not registered and does not intend to register any part of the offering in the United States or to conduct a public offering of any securities in the United States.

This document is an advertisement for the purposes of applicable measures implementing Directive 2003/71/EC (such Directive, together with any applicable implementing measures in the relevant home Member State under such Directive, the "Prospectus Directive"). A prospectus prepared pursuant to the Prospectus Directive (the "Prospectus") will be published, and when published can be obtained from Citibank, N.A. at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB. Investors should not subscribe for any securities referred to in this document except on the basis of information contained in the Prospectus.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). Any Notes will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such Notes will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

Information contained in this document is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in the Russian Federation or to or for the benefit of any Russian person, and does not constitute an advertisement or offering to non-qualified investors of any securities in the Russian Federation. The Notes have not been and will not be registered in the Russian Federation or admitted to public placement and/or public circulation in the Russian Federation. The Notes are not intended for "placement" or "circulation" in the Russian Federation unless and to the extent permitted under Russian law.

In connection with the issue of the Notes, Merrill Lynch International (the ''Stabilising Manager''), or persons acting on behalf of the Stabilising Manager, may over-allot Notes or effect transactions with a view to supporting the market price of the Notes at a level higher than that which might otherwise prevail. However, there is no assurance that such Stabilising Manager (or persons acting on behalf of the Stabilising Manager) will undertake stabilisation action. Any stabilisation action may begin on or after the date on which adequate public disclosure of the terms of the offer of the Notes is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue date of Notes and 60 days after the date of allotment of such Notes. Any stabilisation action or over-allotment shall be conducted in accordance with all applicable laws and rules.