CONTENT. Export...36 Domestic market Monitoring

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2 CONTENT Results. Figures. Facts The main foreign economic activity in Development chronicle of exchange commodity market in Results of the exchange trade in Dynamics. Quotations. Trends Ferrous metals and products thereof Domestic market Export Non-ferrous metals and products thereof Domestic market Export Coke Coal Electrical products Feedback "On successful co-operation" (a letter of Minsk Plant of Heating Equipment OJSC) Timber market Republic of Belarus Exchange auctions (export) Exchange auctions (domestic market) Agricultural products Monitoring Export Domestic market The rating of exchange auctions participants in The rating of trading activity of exchange brokers in

3 Dear readers of "Exchange Bulletin", partners and clients of Belarusian Universal Commodity Exchange, commodity market participants! Once again, opening "Exchange Bulletin" and summing up the the previous year, I won't dissemble and I will just say that 2014 year was challenging for Belarusian Universal Commodity Exchange OJSC as well as for many other companies in our country. Nevertheless, despite some difficulties, significant progress was achieved in a number of indicators this year. Of course, from one year to the next we are happy to see new companies come to the Exchange. They understand and use in practice the possibilities and advantages of electronic trade. The client base increased by almost one and a half thousand business entities and at the beginning of a new year it accounted for participants, including more than 3 thousand representatives from 56 foreign countries. Our foreign economic activity reached a qualitatively new level. This year we arranged several business forums in different countries, which resulted in not only strengthening the status of the Exchange as the authoritative international trading platform, but also in drawing the attention of foreign companies to the Belarusian commodity market. Conclusion of the co-operation agreements with Russian industry associations should be admitted as one of the most important events of the previous year. We expect that it may help to optimize trade in dairy products between our countries. There are significant achievements in exchange logistics. First of all, they encompass creation of the International Association of exchange brokers and logistics experts with the direct participation of the Exchange, as well as the Portal of logistics services that is integrated in the trading system. It should be also noted that the new software complexes were launched at the section of industrial and consumer goods "Exchange auctions with ICG" and "Procurement of ICG", which resulted in growth of the turnover at this platform by almost 4 times. In this final issue of "Exchange Bulletin" you may find all our activity. Whereas, I would like to congratulate you on the occasion of New Year and wish you success in your activity. I want to encourage you to remain optimistic in the difficult economic conditions that 2015 year has brought, and use all existing possibilities for conducting business effectively, including one of the most progressive of them that is exchange trade. Believe me, the potential in this area is far from being depleted, and our reserves are almost unlimited. Arkady Salikov, Chairman of the Board Belarusian Universal Commodity Exchange OJSC

4 E X C H A N G E Results. Figures. Facts THE MAIN RESULTS OF FOREIGN ECONOMIC ACTIVITY IN 2014 In 2014 Belarusian Universal Commodity Exchange OJSC (BUCE) continued its ongoing work on development of foreign economic relations aimed at representing BUCE on foreign markets for further expanding the geography of exchange trade and increasing volumes of exchange auctions involving non-resident companies. Last year 51 foreign business trips of the working groups of the Exchange were arranged. The geography of business trips encompassed 17 countries: the Russian Federation 28 visits, Kazakhstan 3, Turkey 3, Sweden 3, Iran 2, Lithuania 2, Armenia, Azerbaijan, Vietnam, Georgia, Indonesia, Korea, Latvia, Poland, Serbia, Switzerland, South Africa 1 visit. The Exchange took part in 11 international and national industry exhibitions in Belarus and abroad, including participation as an exhibitor at the National Exposition of the Republic of Belarus in Serbia (Novi Sad), Turkey (Izmir) and Vietnam (Ho Chi Minh City). On the initiative of the Exchange the high-level international business forums were organized and held in Stockholm (with participation of the partners of the Exchange from Belarus and Sweden the Republican Confederation of Entrepreneurship, SoftClub Software Development Center CJSC and Uppsala Data & Mjukvara), and in Istanbul (together with the Chamber of Commerce of Istanbul, with the assistance of the Embassy of the Republic of Belarus to the Republic of Turkey). The International Exchange Forum was arranged under the auspices of the Interexchange Electronic Union (IEU) in Tehran (Iran), which allowed BUCE to position itself on foreign markets as a reliable player in electronic and exchange trade. In 2014 the representatives of BUCE participated in 69 meetings in foreign economic relations (both at the Exchange and out of it), including the events supervised by the Ministry of Trade of the Republic of Belarus, the Belarusian Chamber of Commerce and Industry, the Union of legal entities "Republican Confederation of Entrepreneurship". The most significant for the Exchange events during the last year are listed under the heading "Development chronicle of exchange commodity market". DEVELOPMENT CHRONICLE OF EXCHANGE COMMODITY MARKET IN February 6 The meeting of the Coordinating Council on exchange trade was held, where the the Exchange activity in 2013 were summed up and the priorities for the further work were determined. The most important of them were assignment of the function of OTC transactions with exchange commodities registration to the commodity exchange at the legislative level, and introduction of the supplemental provision of the Code of Administrative Offences that establishes liability for violation of the procedure and the period of OTC transactions registration, including provision with incomplete or incorrect information. February 24 BUCE delegation took part in the meeting of the General Assembly and the 17th Annual Conference of the Association of Future Markets (AFM) held on the island Bali (Indonesia). The training seminar on the activities of BUCE was arranged, where the members of the Chamber of Commerce and Industry (CCI), the Association of Importers and the Association of Exporters of Indonesia, the National Agency for Export Development participated. On September the representatives of the Exchange took part in the regular meeting of the General Assembly of the Association of Future Markets held as part of the 35th International Forum for derivatives markets that was arranged by the Swiss Futures and Options Association (SFOA) and the Futures Industry Association (FIA) in Geneva (Switzerland) March 6 On the initiative and with the participation of BUCE, the International Association of exchange logistics experts and brokers "BLB" was established. It is composed of about 20 authoritative organizations from Belarus, Russia, Kazakhstan, Ukraine, Latvia, Poland and Germany, activity of which is related to exchange movement and that are interested in its development. The activity of the Association is aimed at widespread introduction of a complex of logistics services to exchange trade in order to create the most favorable terms of delivery of goods purchased to the consumer. Arkady Salikov, Chairman of the Board of the Exchange, was unanimously elected as Chairman of the Board of the Association "BLB" (on a voluntary basis). 2

5 Results. Figures. Facts E X C H A N G E March 6 There was the solemn meeting in the central office of the Exchange, where the most active participants of exchange trade were awarded in accordance with the work in The representatives of 26 organizations from Belarus, Russia and Poland that concluded the largest volume of transactions at every exchange section metal products, agricultural products, timber products, industrial and consumer goods, and showed significant results at the section of government procurement and in logistics visited this event. March 7 Arkady Salikov, Chairman of the Board of BUCE, and Henry Ljung, General Director of Swedish company Uppsala Data & Mjukvara AB (UDM), signed the Memorandum of Understanding aimed at representing the interests of the Exchange and UDM in Belarus and the Nordic region countries. Exchange trade in timber and lumber was determined as a starting point for bilateral co-operation. April 24 There were signed some of the most important co-operation agreements in the reporting year in the central office of the Exchange in Minsk with the National Union of Milk Producers (Soyuzmoloko) and the Russian Union of dairy enterprises (RSPMO). The agreements were signed by Arkady Salikov, Chairman of the Board of BUCE, Andrey Danilenko, Chairman of the Board of Souzmoloko, Ludmila Manitskaya, CEO of RSPMO, in the presence of the representatives of the Ministry of Trade of the Republic of Belarus, the Ministry of Agriculture of the Russian Federation, the group of companies Olam International Limited and Danone. The agreements are aimed at creation of common and sustainable dairy market in the Eurasian Economic Union, with transparent pricing, compliance with the requirements of quality, fulfillment of the contractual obligations, i.e., establishment of favorable conditions for increase of mutual trade turnover between Belarus and Russia. May 6 The seminar "Possibilities and advantages of electronic trading platform of Belarusian Universal Commodity Exchange" organized in collaboration with the Ministry of Architecture and Construction of the Republic of Belarus was held at the Exchange via videoconference. The event was attended by more than 60 directors and chief experts of the organizations of the Ministry of Architecture and Construction of the Republic of Belarus, the directors and the representatives of key departments of BUCE presented their reports. After the seminar Alexander Kruchanov, First Deputy Minister of Architecture and Construction, recommended the subordinate organizations to use actively the exchange mechanism for fulfillment of trading and procurement operations. May The representatives of the Exchange took part in the 81th International Agricultural Exhibition "Novi Sad 2014" that was held in Novi Sad (the Republic of Serbia) to establish new business contacts, widen the client base and inform about the possibilities of the Exchange in electronic trade in exchange and non-exchange commodities. Within the business trip the talks with the Heads of the Chamber of Commerce and Industry of Serbia and the meetings with the representatives of agricultural and food companies of the Balkan region were held, during which the issues of trade and economic relations between Belarus and Serbia development were discussed. May 21 The delegation of Chelyabinsk region of the Russian Federation headed by Alexey Bobrakov, Minister of Industry and Natural Resources of the region, visited the Exchange. During the talks with Edward Matulis, Deputy Minister of Trade of the Republic of Belarus, the parties discussed the issues with regard to accreditation of enterprises of Chelyabinsk region at the Exchange and prospects of using the possibilities of the electronic platform for trade in industrial and consumer goods of BUCE by companies from Chelyabinsk region

6 E X C H A N G E Results. Figures. Facts May 29 BUCE hosted the VII session of the Committee on commodity markets of the International Association of Exchanges of the Commonwealth of Independent States (CCM IAE CIS) that was attended by directors and experts of the largest exchanges and financial institutions of Belarus, Russia, Kazakhstan and Uzbekistan. Development and implementation of the plan for providing the participants of commodity exchange markets of the CIS countries and the Common Economic Space (CES) with mutual access to the infrastructure of the exchanges members of the CCM was the main topic of discussion. Formation of the system of non-residents risks insurance at the national platforms, i.e. creation of clearing and payment settlement systems and harmonized rules of work, was determined as one of the most important condition for this idea fulfillment. May The 6th International Conference "Aluminum: alloys, profiles and rolled products for industry and construction" was held in Minsk. It was organized jointly with the specialized magazine "Metal Supply and Sales", the publisher of which is presented by the partner of BUCE the Russian Union of Metal and Steel Suppliers (RSPM). The conference was attended by the representatives of about 100 companies members of RSPM. As a follow-up to the conference, the central office of the Exchange hosted a business seminar "Arrangement of electronic auctions, particularities of exchange transactions, possibilities for Russian suppliers". The seminar was held in a constructive way and it was a great opportunity for discussion of the topical issues with regard to operation of Russian companies at the electronic trading platforms of BUCE. May 30 The general meeting of the members of the Association of International Road Carriers "BAMAP" was held, where Arkady Salikov, Chairman of the Board of BUCE, made a report at the invitation of the Association Heads. In his report A. Salikov noted that development of the exchange logistics was focused on support of the domestic freight carriers and BUCE went towards creation of such a configuration of electronic auctions, that let the Belarusian exporters not only sell their goods profitably, but also get a range of logistics services for delivery their goods to consumers, which would result in additional foreign currency revenue of the state and providing the domestic freight carriers with orders. June 10 At the meeting of members of the Board of the Association of exchange logistics experts and brokers "BLB" the Belarusian portal of transport and logistics services created on the basis of the logistics platform that operates in the Russian Federation was presented. The portal will be integrated into the trading system of the Exchange and it will enable each participant of exchange auctions to choose the operator of logistics services or declare the corresponding tender while purchasing goods. June The International Business Forum was held in Stockholm (Sweden). It was arranged by BUCE together with its partners from Belarus and Sweden Republican Confederation of Entrepreneurship ALE, SoftClub Development center CJSC and the company Uppsala Data & Mjukvara. The forum was attended by the experts and the representatives of BUCE in Lithuania and Latvia, the Exchange Union "Kazakhstan", the clients of BUCE from Scandinavia, the Baltic States and South Africa, as well as about 50 trade, transport and logistics, production companies from Northern and Eastern Europe, including the delegation of business circles of the Republic of Belarus. The forum allowed to establish new business contacts and to inform the Scandinavian businessmen about the advantages of using the exchange mechanism while implementing export and import operations, as well as the possibilities of Belarusian, Baltic and Scandinavian business entities entrance to the markets of the Customs Union and the Nordic countries via exchange auctions. 4

7 Results. Figures. Facts E X C H A N G E June 18 Arkady Salikov, Chairman of the Board of the Exchange, met with Sergey Glazyev, Advisor to the President of the Russian Federation, in Moscow. The main topic of talks was discussion of the situation with regard to exchange trade in the Eurasian Economic Union, and in particular a number of integration initiatives of the Exchange. S. Glazyev noted that the experience of BUCE in the wholesale commodity market regulation would be taken into account in formation of the Eurasian Economic Union economy. July 1 The exchange auctions with futures contract for petroleum products price index of Saint- Petersburg International Mercantile Exchange CJSC (SPIMEX) Regular-92 were launched at the Exchange. The solemn meeting devoted to the beginning of exchange auctions with the new futures contract was attended by the heads of BUCE and SPIMEX, the representatives of the National Bank of the Republic of Belarus, Belarusian Oil Company CJSC, and the participants of exchange trade at the section of futures market. July 9 Arkady Salikov, Chairman of the Board of BUCE, met with Sergey Lebedev, Chairman of the Executive Committee Executive Secretary of the Commonwealth of Independent States. As a result of this meeting the parties agreed on the further steps for implementation of measures aimed at convergence of commodity markets of the CIS countries in order to increase the mutual trade turnover. July 22 The negotiations with the Turkish company Armet were held. Halit Gurat, Director of Armet, expressed his interest in expanding co-operation with BUCE via participation in exchange auctions with timber, and implementation of joint projects in the sphere of electronic trade. Once again, the Heads of Armet visited the Exchange on October 23-24, 2014 in order to consider the possibility of implementation of BUCE, Armet and SoftClub Ltd. joint project on the Belarusian-Turkish electronic trading platform creation that will provide the participants of exchange trade with direct access to the Turkish market. July 23 Mohammad Reza Saburi, Ambassador Extraordinary and Plenipotentiary of the Islamic Republic of Iran to the Republic of Belarus, visited the Exchange to discuss the topical issues of cooperation between the Embassy and BUCE. During the meeting with the Heads of the Exchange Iranian diplomat was informed about the main activities of BUCE, as well as the advantages of using the exchange mechanism for export-import operations implementation. The Iranian diplomat expressed his readiness to assist BUCE in promotion of its services, in particular by placing the information about the Exchange on the website of the Embassy and redirecting the commercial proposals and applications received from Iranian companies to BUCE. August 28 The delegation of the Exchange held the International Business Forum in Istanbul, organized with the assistance of the Embassy of the Republic of Belarus to the Republic of Turkey and the Consulate General of the Republic of Belarus in Istanbul. The event was attended by the Heads of the Istanbul Chamber of Commerce and the Istanbul Commodity Exchange, the representatives of business circles of Turkey, Bulgaria and Serbia, and a number of leading Belarusian companies that expressed their interest in expanding the geography of exports to the Balkan market: Bel les - export RUE, Belarusian Timber Company SE, Mostovdrev OJSC, Bellakt OJSC and others. As a result of the forum, the agreements on the joint projects implementation were reached with use of the mechanisms of electronic and exchange trade

8 E X C H A N G E Results. Figures. Facts August 29 September 1 The Exchange took part in the largest exhibition event in Turkey the 83rd Izmir International Fair 2014, organized traditionally by the Chamber of Commerce and Industry of Izmir and the Ministry of Trade of Turkey. This event let inform the representatives of the Turkish business about the BUCE activity and services for holding electronic and exchange auctions, and find new partners to enter the commodity market of the Republic of Turkey. During the Belarusian-Turkish Business Forum that was held at the Chamber of Industry of the Aegean region the representatives of the Exchange discussed with the Turkish partners the most effective schemes of trade and procurement operations arrangement between residents of the Republic of Belarus and the Republic of Turkey, taking into account the logistics infrastructure established by BUCE in Turkey and Bulgaria. September 12 The delegation of the members of the Latvian Chamber of Commerce and Industry visited the Exchange. The participants of the meeting discussed Belarusian timber sales to Latvia, the advantages of using the exchange logistics while delivering goods purchased at the Exchange to the buyer, as well as participation of Latvian companies in electronic auctions at the government procurement section in the Republic of Belarus. As a result of the negotiations, the agreement on closer co-operation between BUCE and the Latvian Chamber of Commerce and Industry was reached in order to attract new Latvian companies for participation in exchange auctions. September 26 The working meeting with the Heads of the Union of Ice-Cream Producers of Russia Valery Elhov, General Director, and Svyatoslav Radwansky, Deputy General Director was held in Moscow. The goals, the objectives, the principles of the Exchange operating, the possibilities and advantages of the dairy market functioning with use of the exchange instruments were considered in detail, as well as the aspects of co-operation between the Exchange and Russian industrial unions were discussed. As a result of the meeting, Co-operation Agreement between the Exchange and the Union of Ice-Cream Producers of Russia was signed. October 2-3 Almaty (Kazakhstan) hosted the Annual General Meeting of the members of the IAE CIS. The participants of the meeting discussed the financial and economic activity of the IAE CIS for the period of st half of 2014, and they elected the new Board of the IAE CIS, which included Arkady Salikov, Chairman of the Board of BUCE. On November 6, 2014 the delegation of the Exchange participated in the V Working meeting of the information and marketing experts the members of the IAE CIS that took place at the Baku Interbank Currency Exchange (Azerbaijan). The issues of interaction in disseminating the exchange quotation information about exchange auctions were considered. October 23 The Russian-Belarusian conference "State and municipal government procurement, co-operation prospects" organized by the Government of Moscow and the Ministry of Trade of the Republic of Belarus was held in the cultural and business center "Moscow House" in Minsk. It brought together the leading experts in holding government procurement. Within the conference Oleg Yakubovich, First Deputy Chairman of the Board of BUCE, made a report "Belarusian Universal Commodity Exchange in the government procurement system of the Republic of Belarus: exchange auctions and electronic auctions". October 23 The negotiations with the delegation of Economy Development Centre OJSC (B2B-Center), headed by Vadim Potrashkov, Director for Strategic Development, were held at the Exchange. The visit was made within the co-operation agreement between BUCE and B2B-Center and it was devoted to discussion of the mechanism of mutual recognition of EDS in trading systems of both parties implementation. 6

9 Results. Figures. Facts E X C H A N G E As a result of the visit, two agreements were signed. Under these agreements B2B-Center is obliged to assist in attraction and accreditation of new clients at BUCE, while the Exchange will provide services on search for participants of exchange trade to work in information and analysis, trading and operating system of B2B-Center. October The Days of Belarusian economy in Switzerland were held in Bussnang (Switzerland) under the auspices of the Chamber of Commerce and Industry of the Republic of Belarus, where the possibilities of BUCE and exchange logistics were presented. At the business forum provided for by the business program Vyacheslav Dovnar, main partner of BUCE in exchange logistics, member of the Board of the Association of exchange logistics experts and brokers "BLB", made a report and told about the principles of the activities of the Exchange and the mechanism of exchange logistics that lets the exchange auctions participants not only conduct a transaction, but also provide with a range of logistics services for delivery of purchased goods to consumers. November The delegation of BUCE participated in the 20th Anniversary International Industrial Exhibition "Metal-Expo'2014" in Moscow. More than 650 companies from 35 countries of the world the leading steel companies, pipe and hardware plants, non-ferrous metals processing enterprises, aluminum alloys, rolled steel, profiles and constructions manufacturers, builders, mechanical engineers, oil and gas producers, representatives of other sectors of the real economy were the exhibitors. The II International Conference "Electronic platform for trading in metal products of Belarusian Universal Commodity Exchange OJSC is an effective instrument for the Customs Union metal market development" was held within the exhibition with the support of the Russian Union of Metal and Steel Suppliers, during which more than 40 metal traders from Russia, Germany and Kazakhstan were informed about the ferrous metals market trends in the Republic of Belarus, were able to see real exchange trade in remote access and obtain detailed answers to practical questions about the procedure of accreditation and participation in exchange auctions. November The 2nd International Exchange Forum co-organized by BUCE was held in Tehran (Iran) under the auspices of the Interexchange Electronic Union (IEU). The forum became an unprecedented in scale business event that brought together about 80 representatives of organizations members of the IEU, government agencies and business circles of Armenia, Belarus, Iran, Kazakhstan, Ukraine and other countries. The representatives of more than 20 Iranian and foreign print and online publications, television and radio came to cover the forum. The BUCE delegation held talks with the Heads of Iran Mercantile Exchange (IME), Securities and Exchange Organization of Iran (SEO) and Central Securities Depository of Iran to discuss the prospects of setting up the joint international trading platforms. BUCE and IME agreed also on joint projects development in the sphere of exchange and electronic trade with use of the experience and technological potential of both exchanges. November 19 At the invitation of Andrey Tsarikovsky, Secretary of State Deputy Head of the Federal Antimonopoly Service of Russia, Arkady Salikov, Chairman of the Board of BUCE, took part in the meeting of the Advisory Council of the Federal Antimonopoly Service of Russia for development of competition in the sphere of metallurgy, where he made a report "The Belarusian exchange market of metal products". As a result of the meeting, A. Salikov and A. Tsarikovsky held talks and discussed application of the representative price indicators on the wholesale market of metal products and the possibilities of information co-operation. November 21 The delegation of members of the Chamber of Commerce and Industry of the Canton of Thurgau (Switzerland) visited the Exchange. The representatives of Swiss business were informed about the activities of BUCE and the peculiarities of exchange trade in the Republic of Belarus, they discussed also the possibility of using the electronic system of the Exchange for metal products procurement

10 E X C H A N G E Results. Figures. Facts The possibilities of BUCE in exchange logistics attracted particular attention of the Swiss businessmen. In the near future it is planned to accredit the exchange warehouse in Frauenfeld, which will let Swiss companies conclude exchange transactions with delivery of goods purchased under the terms of DAT, DAP, FAS, FOB (exchange warehouse) without intermediaries, which will result in significant reduction of transportation costs November 21 The international conference "Electronic government procurement, ensuring fairness and transparency of the auction: the experience of Eurasian integration and the prospects", organized by the Eurasian Economic Commission with the support of the Ministry of Finance of the Republic of Kazakhstan and the Association of electronic trading platforms (the Russian Federation) was held in Astana (Kazakhstan). The event brought together the leading experts on legal regulation of government procurements and their practical arrangement in order to share the experiences of the public associations and the electronic trading platforms of the states the members of the Common Economic Space, study the world best practices and consider problematic issues in this area. November Brest hosted the Belarusian-Croatian business forum with Stipe Mesic, ex-president of the Republic of Croatia ( ). The forum was organized by the Brest branch office of Belarusian Chamber of Commerce and Industry with the support of the Brest Regional Executive Committee. Anatoly Zaretsky, Deputy Chairman of the Board of the Exchange, made a report and told about the procedure of holding the exchange and electronic auctions at BUCE, non-resident companies accreditation and possibilities of the exchange logistics. As a result of the matchmaking meetings held within the forum, a number of Croatian companies expressed their intention to be accredited at the trading platform of BUCE. December 3-6 The Delegation of BUCE participated as an exhibitor in the National Exposition of the Republic of Belarus at the Vietnam International Trade Fair "Vietnam Expo 2014" (Ho Chi Minh), as well as in the Belarusian-Vietnamese business forum organized by the Belarusian Chamber of Commerce and Industry with the support of the Embassy of the Republic of Belarus to the Socialist Republic of Vietnam. The report on the advantages of using the instruments of electronic and exchange trade of BUCE for boosting trade and economic co-operation between Belarus and Vietnam was presented at the forum. In addition, the negotiations were held with the Heads of Vietnamese companies HAPRO and VINATEX about arrangement of Vietnamese coffee, rice, spices, fish and seafood, textile products sales to Belarus and export of Belarusian commodities to Vietnam. December 8-9 The working group of the Exchange made a business visit to Seoul (South Korea). Within the visit the delegation of BUCE visited the Public Procurement Service of the Republic of Korea (PPS) and it was informed about the activity of the Korean electronic government procurement system (KONEPS) that is considered one of the best in the world. As a result of the meetings, the parties agreed on sharing the experiences and the technologies used for electronic auctions arrangement for procurement fulfillment at the expense of budgetary funds and own resources of enterprises. December 12 The extended session of the Eurasian Business Council and the Conference of the Committee on financial markets and integrated capital of the Eurasian Business Council were held in Moscow, where the issues of Eurasian integration with regard to the Eurasian Economic Community formation were considered in detail. While discussing the report of Boris Zveryukov, Chairman of the Committee, it was suggested to consider the possibility of BUCE participation in the Eurasian Business Council activity as a partner, as well as inclusion of Oleg Yakubovich, First Deputy Chairman of the Board of the Exchange, in the Board of the Committee. n 8

11 Results. Figures. Facts E X C H A N G E RESULTS OF THE EXCHANGE TRADE IN 2014 Over the previous 2014 the client base of Belarusian Universal Commodity Exchange OJSC (BUCE) rose to participants of exchange trade and clients of exchange brokers, of which were residents of 56 foreign countries. In the past year the number of companies on the exchange market increased by business entities, including 253 non-residents. In 2014 the total commodity turnover on the exchange market amounted to equivalent of BYR trln, or 104% of the figure in 2013: KEY RESULTS OF ACTIVITY OF BELARUSIAN UNIVERSAL COMMODITY EXCHANGE OJSC in 2014 Commodity name Number of auctions Number of transactions Transactions in kind Transactions in monetary terms, bln BYR Rate, % Rate, % Unit Rate, % Rate, % Total, including: export import domestic market Section of metal products, including: thsd tons ferrous metals and products thereof (import, domestic market) thsd tons non-ferrous metals and products thereof (import, domestic market) thsd tons coke (import) thsd tons coal (import) thsd tons electrical products (import, domestic market) scrap and waste of ferrous metals (export) thsd tons non-ferrous metals, scrap and waste of non-ferrous metals (export, domestic market) thsd tons Section of timber, including: round wood (domestic market) thsd cbm sawn timber (domestic market) thsd cbm forest fund, standing wood (domestic market) thsd cbm fuel chips (domestic market) thsd cbm logging services (domestic market) thsd cbm plywood, chipboard (domestic market) thsd cbm chipboard (domestic market) thsd sqm 9.12 paper products (domestic market) thsd tons thsd packs (thsd pieces) thsd sqm 0.07 articles for manufacturing PVC windows and doors 118 thsd m thsd pieces round wood (export) thsd cbm wooden poles peeled and sharpened (export) thsd pieces sawn timber (export) thsd cbm plywood (export) thsd cbm fiberboard (export) thsd sqm fuel briquettes, fuel pellets, and peat briquettes (export) thsd tons fuel chips (export) thsd cbm Section of agricultural products, including: meat (export) thsd tons pork and poultry thsd tons rye, wheat flour and groats ( export) thsd tons rapeseed oil and rapeseed, rapeseed meal ( export) thsd tons unprocessed cattle rawhide (export, domestic market) thsd tons casein (export) thsd tons milk powder, whey and cottage cheese (domestic market and export) thsd tons butter (export, domestic market) thsd tons rennet cheeses (export) thsd tons oil-bearing oilcakes, grain crops, feed flour, plant-protecting agents (domestic market, import) thsd tons vegetable oils and oilseeds (domestic market, import) thsd tons ballast, cement (domestic market, import) thsd tons endocrine-enzymatic raw materials (domestic market) thsd tons Section of consumer and industrial goods (domestic market, import, export) The futures market section (the data is provided for information purposes and is not included into the total number and amount of transactions at the Exchange) contracts

12 E X C H A N G E Results. Figures. Facts CO-OPERATION GEOGRAPHY (non-residents) in 2014 Country Quantity of companies Russia Lithuania 273 Latvia 223 Poland 209 Ukraine 151 Estonia 84 Germany 70 United Kingdom 43 Kazakhstan 42 Czech Republic 41 Moldova 31 Uzbekistan 21 USA 19 Azerbaijan 17 Georgia 17 Netherlands 16 Italy 13 Bulgaria 10 Hungary 10 Turkey 10 Turkmenistan 10 Armenia 9 Austria 9 China 9 Tajikistan 9 Belgium 8 Romania 8 Slovakia 8 Cyprus 7 Kyrgyzstan 7 Denmark 5 Finland 5 New Zealand 4 Spain 4 Switzerland 4 Syria 4 Belize 3 Canada 3 Panama 3 UAE 3 Dominica 2 France 2 Singapore 2 South Africa 2 Sweden 2 Virgin Islands 2 Afghanistan 1 Egypt 1 Greece 1 Iran 1 Ireland 1 Norway 1 Portugal 1 Serbia 1 Seychelles 1 Slovenia 1 In total ADDITIONAL REVENUE AND SAVINGS OF RESIDENTS OF THE REPUBLIC OF BELARUS received as a result of growth in export prices and lowering purchase prices at the auctions held at BUCE in Trade section bln BYR mln EUR mln USD bln BYR mln EUR mln USD Metal products Timber Agricultural products Total import BYR 5.93 trln (the growth rate accounted for 91%, the share in the total exchange turnover 37%); transactions on the domestic market BYR 5.60 trln (the growth rate accounted for 132%, the share in turnover 35%); export BYR 4.44 trln (the growth rate accounted for 95%, the share in turnover 28%). The proportion of transactions by commodity sections was as follows: metal products 40.7%; timber products 35.3%; agricultural products 20.2%; industrial and consumer goods 3.8%. Taking into account the volumes of transactions at electronic auctions for government procurement and procurement at the own expense of the organizations that were conducted at the electronic trading platform of the Exchange (ETP), in 2014 the total exchange turnover grew to 112% in comparison with the turnover in 2013: BYR trln against In the reporting period the amount of the additional revenue and savings of Belarusian participants of exchange trade accounted for about BYR 985 bln (in 2013 BYR 1.1 trln). Agricultural products The relatively low growth rate of the total exchange turnover in 2014 (104%), as well as the decrease of exports by 5% in comparison with 2013 resulted from, first of all, a sharp decline of the volumes of transactions at the export-oriented 10

13 Results. Figures. Facts E X C H A N G E section of agricultural products by 37% (the total turnover at the section decreased by 20%). One of the main reasons for the decline of sales volumes of such major export products as skimmed milk powder and butter (the situation was also typical on the OTC market) was a significant increase of production volumes of the main buyer of Belarusian milk the Rus - sian Federation, while the consumer demand decreasing which resulted from the retail prices growth in the country. In addition, the decline of the wholesale prices for dairy products on the global market contributed to strengthening the activities of the Russian operators with foreign suppliers (from Europe, New Zealand, Australia, South America). However, the administrative regulation of the export prices was the key factor restraining the dairy products sales at the Exchange. At certain periods of the year the disparity between the level of the minimum export prices determined by the working group on monitoring the dairy products sales, and the actual prices formed on the Russian market was observed, taking into account the global downward trend in prices for basic dairy products. Moreover, at the OTC segment of the dairy market, in violation of the working group of the Ministry of Agriculture and Food of the Republic of Belarus decisions, in 2014 the dairy products sales were fulfilled at the recommended prices, but, for example, providing delay of the payment (40.8 thsd tons or 25% of the total volume of the transactions registered at the Exchange) or under the terms "with delivery" (3.1 thsd tons, or 2%), while there were declared obviously less favorable terms at exchange auctions 100% prepayment and without delivery. At the same time another problem have to been admitted that can't be resolved for several years: in the past year only about 65% of dairy enterprises of the country fulfilled registration of the OTC transactions at the Exchange, which does not let make a complete analysis of the situation on the dairy export market as a whole. Metal products While maintaining the total exchange turnover in monetary terms at the section of metal products in 2014, the volume of transactions in kind decreased (compared to 2013) with such key commodity items as ferrous metals and products thereof thsd tons (83%), nonferrous metals and products thereof 5.8 thsd tons (89%). A decrease of the volume of exchange ferrous metals turnover by 17% resulted from, primarily, the decrease of these commodities imports volumes to Belarus by comparable amount as a whole. The share of exchange segment in the total volume of metal imported in 2014, according to preliminary estimates, remained at the level of 20%. At the same time the volumes of exchange procurements of electrical products grew: the total amount of transactions accounted for more than BYR 300 bln (155% compared to 2013). The volumes of scrap and waste of ferrous and non-ferrous metals export amounted to and thsd tons respectively (the growth rate 147 and 117%). Joint activities of the Exchange and BSW management company of "BMC" holding OJSC held under a number of the orders of the Government allowed in the 2nd half of 2014 to boost the exchange auctions on the domestic market with construction reinforcement steel produced in the Republic of Belarus, which resulted in conclusion of 109 transactions of the total volume of tons of rolled steel. The work in this perspective area will be kept on in Timber products In the reporting year the exchange turnover in the main commodity items of timber products increased significantly compared to 2013: on the domestic market: round wood the growth rate accounted for 149% in monetary terms and 133% in kind; sawn timber 330% and 273%, respectively; on the foreign market: sawn timber 130% and 114%; fuel chips by more than 20 times in monetary terms and in kind. In 2014 services on logging 2.05 mln cbm wood for a total amount of BYR bln were rendered, which accoun - ted for 122% and 139% respectively in comparison with the volumes of exchange auctions with the services in In order to expand use of the exchange logistics services while exporting timber products to the countries of Western Europe and the Baltic region, in the reporting year 69 transactions for sale of cbm sawn timber for a total amount of EUR 1.5 mln were concluded at exchange auctions. 27 transactions of them were concluded under the delivery terms DAP-exchange warehouse of cbm for a total amount of EUR 1.5 mln, 42 transactions under the delivery terms FCA-warehouse of the consignor of the Republic of Belarus with obligatory use of the exchange logistics by the buyer of the total volume of cbm. In addition, 2 transactions with round wood of the total volume of cbm under the delivery terms DAP 11

14 E X C H A N G E Results. Figures. Facts and 1 transaction of the volume of cbm under the delivery terms of DAF-the border of the Republic of Belarus with obligatory use of the exchange logistics by the buyer were concluded. Industrial and consumer goods (ICG) After launching the new software systems "Exchange auctions with ICG" and "Procurement of ICG" in July 2014 that allow to purchase goods with use of a fundamentally new for the section of industrial and consumer goods scheme of reverse auction, the interest of the clients to operating at this trading platform rose significantly. According to the the year the volume of exchange auctions amounted to BYR bln, or 122% compared to 2013, transactions were concluded (173%). In 2014, 252 buyers and 469 sellers of various forms of ownership concluded the transactions at the section of industrial and consumer goods. About 60% of buyers were presented by construction organizations. Their demand for construction materials, machinery and equipment, building implements was almost fully satisfied by the sellers, and the transparent and competitive terms of exchange auctions let reduce prices by 15-20% with regard to the average prices on the market. In the commodity structure (in monetary terms) the following commodities held the leading positions: machinery and other equipment (27.7%), chemical substances (17.7%) and mineral non-metallic products (15.2%), used mainly in the construction industry. The largest volumes of products were purchased by the state-owned enterprises (affiliated with the Ministry of Architecture and Construction, the Ministry of Industry, the Brest Regional Executive Committee and the Ministry of Agriculture and Food), and without departmental affiliation (including the brokerage organizations). Leading positions among sel - lers were occupied by Felix JLLC, Broker of the exchange logistics LLC and Isolation OJSC, among buyers by Gomelpromstroy OJSC, Grodnozhilstroy OJSC and Grodnopromstroy OJSC. However, it should be admitted that the opportunities of the platforms of the section of ICG on trade and procurement activity optimization and export increase have not been yet used fully, which results from mainly the conservative approaches of the directors and sometimes their reluctance to use the modern technologies of trade. Unfortunately, a MAJOR TRANSACTIONS CONCLUDED AT THE SECTION OF ICG in 2014 Q4 Commodity name set of air handling units PV1, PV2, PV3, PV4, set of air handling units P5, P6, P7, P8, P9, P10 Amount of transaction, mln BYR air conditioning systems new skidder for forestry LKT citric acid monohydrate food (E ) suspended aluminum grid ceiling wheel hydraulic excavator JS160W automatic packaging machine AUM-26 with gravity roller conveyor B = 400 mm, L = 2.5 mm glass bottles State Standard IA-K- 700 for alcoholic beverages isothermal automobile-van insulation membrane WP HL Sikaplan garland LED l=20 m set of spare parts for technical maintenance of a mini combined heat and power plant (CHP) of JMC 320 GS-B / N.LC type produced by GE Jenbacher (original) within hours autograder GS parquet board loader universal Amkodor 342С cargo truck "Kupava" 4701N3 on the chassis Hyundai HD 120 multi-split system К bulldozer SHANTUI SD scrap and waste of propylene loader universal Amkodor 342С number of seminars and trainings conducted by the Exchange for the representatives of enterprises and supervising government structures in all regions of the country have not yet created the expected results. Despite this, BUCE isn't intended to stop promoting this mechanism of electronic trade, and it is going to hold the training courses and workshops on use of the electronic trade instruments in trade and procurement activity together with the Ministry of Trade of the Republic of Belarus and the directors of the Republican Confederation of Entrepreneurship and the Minsk Union of Entrepreneurs and Employers in 2015 QI, during which the operation of the platform of industrial and consumer goods will be focused. 12

15 Results. Figures. Facts E X C H A N G E Futures market section In 2014 at the futures market section (financial sector of exchange trade) a sustainable positive growth dynamics of exchange transactions volumes was observed: 240 trading sessions were held where transactions for the total volume of futures contracts for the amount of BYR bln were concluded. In comparison with the figure in 2013 the volume of exchange auctions on the futures market increased by 3.6 times. Launching exchange auctions with the futures contract for SPIMEX petroleum products prices Index Regular-92 (the index is calculated by Saint-Petersburg International Mercantile Exchange CJSC) from had positive impact on the turnover. The futures contract for SPIMEX petroleum products prices Index Regular-92 showed the highest liquidity of three futures market instruments traded at the Exchange: the proportion of the transactions with it in the turnover at the section accounted for 72.7% according to the The maximum monthly turnover was observed in October BYR bln, and the minimum in January: only 269 contracts for the amount of BYR 2.4 bln. In 2014 the average daily turnover amounted to about BYR 508 mln. The maximum turnover for a day was admitted on contracts for the amount of BYR 1.72 bln. Last year 2 new organizations became the participants of exchange auctions on the futures market of BUCE, and on business entities were accredited at the section. PE Kapustin A.A., Vatolstoy LLC, Broker of exchange logistics LLC, BINIT PLUS LLC, Centre of exchange services Mogilev UE were the most active participants of such exchange auctions. Throughout the year these companies were leaders in turnover at the futures market section. DYNAMICS OF VOLUMES AND QUANTITY OF THE TRANSACTIONS AT THE FUTURES MARKET SECTION OF BUCE in Growth rate, % Quantity of transactions Exchange turnover contracts bln BYR Name of contract Futures contract for hot-rolled round steel bars Futures contract for reinforcement steel Futures contract for SPIMEX petroleum products prices Index Regular-92 RESULTS OF EXCHANGE AUCTIONS WITH THE FUTURES CONTRACT concluded in 2014 Contract indication The first trading day The last trading day tation Implemen- date Settlement The number rate, BYR of transactions Exchange turnover Contracts bln BYR FSRSB FSRSB FSRSB FSRSB FSRSB FSRSB FSRSB FSRSB FSRSB FSRSB FSRSB FSRSB FSNRB FSNRB FSNRB FSNRB FSREG

16 E X C H A N G E Results. Figures. Facts Procurements via electronic auctions In 2014, procedures were held at the electronic trading platform for procurements via electronic auctions (ETP), which resulted in conclusion of the contracts for the total amount of BYR 4.42 trln (the growth rate accounted for 156% compared to 2013). The amount of the clients' savings reached BYR bln, while the average decrease of the initial price accounted for 12.54%. For comparison: 5201 auctions were held at the ETP in Decrease of the number of auctions conducted in the reporting period resulted from the changes in the legislation on government procurements at the end of At the same time the number of auctions that resulted in signing the procurement contract increased significantly: in 2013, their share in the total number was about 28%, in %, which confirms the effectiveness and progressiveness of this form of procurements. Activity of the ETP users increased also. For example, in 2013 the average number of participants in one auction amounted to 1.5, and in , indicating that the Belarusian producers and suppliers acquire quite successfully the electronic method of selling their products. Moreover, the professional organizers that are determined in accordance with the decisions of the government make major procurements at the ETP of the Exchange. So, for example, there are Belmedtehnika UE (with subsidiaries in the regions) and Pharmacy RUE in me - di cine and health care sphere, Tender centre of the Minsk City Executive Committee CUE and others among the organizations of municipal property. The exchange ETP is also demanded by Belresursy SA that is a multi-industry orga - nizer performing the functions for con- KEY INDICATORS OF PROCUREMENTS VIA ELECTRONIC AUCTIONS PERFORMANCE OF ELECTRONIC TRADING PLATFORM in гг. Indicator Growth rate, % Quantity of the auctions conducted (the procurement contract was concluded) government procurements procurements at its own expense Amount of the contracts, BYR bln government procurements procurements at its own expense Amount of savings, BYR bln government procurements procurements at its own expense Average decrease of the initial price, % government procurements procurements at its own expense Changes to the legislation on government procurements For attention On January 1, 2015 the Decree of the President of the Republic of Belarus dated December 31, 2014 No. 657 "On introduction of amendments and changes to the Decree of the President of the Republic of Belarus dated December 31, 2013 No. 590" came into force, which stipulated that. 1. The procedures of the quotations request (QR) except the procedures of the quotations request performed in cases the data on government procurement contain the state secrets shall be held by the customer (organizer) only at the electronic trading platforms (Belarusian Universal Commodity Exchange OJSC and National Centre for Marketing and Price Study RUE). 2. Information on submission of complaints against actions (failure to act) and (or) decisions of the customer (the organizer), the commission and (or) its members, the commodity exchange, the operator of the electronic trading platform, the operator of the official website (hereinafter the complaints) to the authorized state authority on government procurements, and their content and the decisions taken as a result of the complaints consideration will be placed on the official website by the authorized state authority on government procurements and it will be publicly available at the electronic trading platform in case of the government procurement procedure conduction at it. 3. Free access to the offers of the government procurement procedure participants shall be provided. After sharing the protocol for choice of the participant-winner on the official website and at the electronic trading platform in case of the government procurement procedure conduction at it or admission of the government procurement procedure failed, the operator of the official website (or the operator of the electronic trading platform, in case of the government procurement procedure conduction at the electronic trading platform) provides the open access to the offers of the participants except for the documents containing the information, distribution and (or) provision of which is restricted in accordance with the legislation. 4. The list of cases of government procurements fulfillment with use of the singlesource procurement procedure that is an annex to the Decree of the President of the Republic of Belarus dated December 31, 2013 No. 590 was adjusted. According to the Ministry of Trade of the Republic of Belarus 14

17 Results. Figures. Facts E X C H A N G E NON-RESIDENT COMPANIES ACCREDITED AT THE ELECTRONIC TRADING PLATFORM FOR CONDUCTING PROCUREMENTS (as of ) Country Quantity of companies Russia 114 Lithuania 28 Germany 19 United Kingdom 14 Latvia 13 Switzerland 12 Austria 11 Poland 11 Estonia 10 Czech Republic 8 Ukraine 6 duction of the government procurements procedures for clients regardless of their departmental affiliation business entities have been re - gis tered at the ETP by the end of 2014, among which 284 were presented by nonresidents. The geography of participants of the electronic auctions encompasses 30 countries. The most active participants of the exchange auctions for Belarusian THE NUMBER OF CASES CONSIDERED BY THE ARBITRATION COMMISSION OF BELARUSIAN UNIVERSAL COMMODITY EXCHANGE OJSC in 2014 Statements of claim accepted Total amount of statements of claim delay damages punitive damages Statements of claim considered (including statements of claim received in 2013) Country Quantity of companies Denmark 4 Italy 4 Slovakia 4 China 3 USA 3 France 3 Bulgaria 2 Hungary 2 Israel 2 Turkey 2 Armenia 1 Metal products section Timber products section Agricultural products section Industrial and consumer goods section (1 793 in 2013) BYR bln BYR bln BYR bln RUB RUB BYR bln USD EUR USD BYR bln BYR bln RUB BYR bln USD EUR BYR bln BYR bln BYR bln RUB RUB BYR bln USD EUR USD (1 628 in 2013) Country Quantity of companies Greece 1 India 1 Spain 1 Cyprus 1 Netherlands 1 Slovenia 1 Finland 1 South Africa 1 Total 284 government procurements among them are companies from Russia (114 organizations are accredited), Lithuania (28), Germany (19) and the UK (14). Medical equipment, drugs and consumables, automated production lines and machinery, chemicals, office equipment and computers, food, paper pro - ducts and others were in the highest demand at the ETP of the Exchange Pending statements of claim Exchange arbitrage In 2014, the Arbitration Commission of Belarusian Universal Commodity Exchange OJSC received applications and statements of claim for the amount of BYR bln, RUB , USD and EUR claims were considered on the merits (including the remainder of cases received in 2013 and considered in 2014), 192 are in pending. According to the claims consideration, the statements of claim were satisfied (fully or partly), 53 statements of claim resulted in the settlement agreements, proceedings on 142 claims were ceased (the plaintiff withdrew the claim due to the payment of debt and the disputes were not subject to the Arbitration Commission consideration), 13 statements of claim were refused. For reference: in 2013, 900 applications and claims requiring consideration by the Arbitration Commission were received (by 1.3 times less than in 2014), cases were considered (by 1.4 times less than in 2014). More than BYR bln, RUB mln or USD , EUR of delay damages, and BYR bln, RUB 2.1 mln and USD of punitive damages were collected. For reference: in 2013, BYR 69.3 bln of delay damages, and BYR 18.1 bln of punitive damages were paid for. In the reporting year arbitration charges accounted for BYR 5.2 bln, RUB , USD and EUR , this amount (BYR) is 1.6 times higher than in 2013, and it is 3.6 times higher than in n Information for the column "Results. Figures. Facts" was provided by the experts of the Methodology and Development Department, the Information and Analysis Division of the Strategic Development Department, the Arbitration Commission of Belarusian Universal Commodity Exchange OJSC. 15

18 E X C H A N G E Dynamics. Quotations. Trends FERROUS METALS AND PRODUCTS THEREOF Domestic market In 2014 the sales structure didn't significantly change at the section of metal products: as before, the largest proportion belonged to ferrous metals and pro - ducts thereof (84.37%). The increase of sales volumes of electrotechnical pro - ducts should be admitted (increase of the proportion accounted for 1.6 percentage points compared to 2013), as well as scrap of ferrous and non-ferrous metals for export (+0.1 and +0.4 percentage points, respectively). Throughout the year low business activity of organizations (that resulted primarily from a drop of credit resources availability and a high level of finished products stocks at the warehouses of enterprises) influenced purchases vo - lumes of ferrous metallurgy products by Belarusian enterprises (including at the exchange platform). Thus, thsd tons of ferrous metals and products thereof were sold at the exchange auctions of BUCE for the amount of BYR bln in 2014, which is lower than the figures in 2013 by 17.0% and 1.8%. For reference: according to the data of the National Statistical Committee of the Republic of Belarus, in 2014 in comparison with

19 Dynamics. Quotations. Trends E X C H A N G E a decrease of output volumes of such metalintensive types of activities as "machinery and equipment production" (by 19.8%) and "transportation vehicles and equipment production " (by 21.3%) was observed. Stocks of finished products (as a percentage of the average monthly volume of industrial output) amounted to 75.8% on January 1, It should be admitted that such dynamics occurred against the background of a high level of ferrous metals and products thereof procurements in 2013, when the sales volume of these products exceeded the indicator in 2012 by 21% (in kind), in 2011 by 38%. For reference: in 2013 the maximum volume of ferrous metals and products thereof was sold at the exchange platform in monetary terms and in kind in the history of exchange auctions conduction. As for regional affiliation of buyers, the procurements structure of ferrous me - tallurgy products didn't significantly change: the enterprises from Minsk and Gomel region took traditionally the leading positions (in monetary terms 28.9% and 19.8% respectively). In the structure of departmental affiliation of buyers the largest share belonged to the organizations of the Ministry of Architecture and Construction and the Ministry of Industry of the Republic of Belarus (24.9% and 14.5% respectively). The enterprises of the Ministry of Energy were also among the most active: an increase of the proportion in the procurements structure accounted for +4 percentage points in comparison with the corresponding indicator in In the reporting year Belmetall OJSC, Steel Company Promstroymetall DLC, Factory of polymeric pipes CJSC, Terrastal LLC and Ramteks trading LLC sold the largest volumes of commodities at the exchange platform. Minskenergo RUE, Promtekhmontazh OJSC, Gomelpromstroy OJSC, Belaruskali OJSC and Mozyr Oil Refinery OJSC became the leading buyers. The total number of buyers that concluded transactions with ferrous metallurgy products reached The largest share in the commodity structure belonged traditionally to pipe products, sheet products and reinforcement steel. According to the data of the National Statistical Committee of the Republic of Belarus, in 2014 ferrous metals and prod- 17

20 E X C H A N G E Dynamics. Quotations. Trends SHARE OF EXCHANGE AUCTIONS WITH PRODUCTS OF FERROUS METALS in 2014 (in kind) Share in the total volume of Commodity name transactions with ferrous metals and products thereof, % hot-rolled sheet 21 reinforcement steel 18 electric-welded pipe 10 disc 5 angle bar 5 beam 4 channel bar 4 cold-rolled sheet 3 bar 2 stainless steel sheet 1 Share of these commodity groups in the total volume of rolled steel sold at the exchange auctions reached over 70%. rolled sheets pipe products PROPORTION OF EXCHANGE TRANSACTIONS WITH PRODUCTS OF FERROUS METALS in 2014 (in monetary terms) Commodity name ucts thereof imports decreased by 17% (in kind) in comparison with The share of the Russian Federation (the main supplier of metal products) grew by 5 percentage points. In the share of exchange auctions in the total imports to the Republic of Belarus of the products under the regulatory list approved by the resolution of the Council of Ministers of the Republic of Belarus dated June 16, 2004 No.714 "On measures for exchange trade development at the commodity exchanges" accounted for 17.6%. During 2014 the price for ferrous metals products was characterized by multidirectional dynamics and, first of all, it resulted from the situation on the market of the Russian Federation, as well as the fluctuations of currency rate BYR/RUB. Strengthening RUB to BYR, as well as the demand growth on the Russian by commodity segment Share in the volume of transactions, % in total with regard to ferrous metals and products thereof hot-rolled sheet stainless steel sheet galvanized sheet cold-rolled sheet other sheet preinsulated pipe electric-welded pipe polyethylene pipe stainless steel sheet hot-deformed seamless pipe water and gas pipe cold- deformed seamless pipe other pipe domestic market observed up to August last year contributed to the rise of the rolled steel price for by the end of 2014 Q3 on average by 10-15%. Later the dynamics of cost was reversed. Sharp weakening RUB resulted from deteriorating the economic IMPORT VOLUMES OF FERROUS METALS AND PRODUCTS THEREOF TO THE REPUBLIC OF BELARUS AND PROPORTION OF EXCHANGE AUCTIONS in *, thsd tons Period Sold at BUCE, thsd tons Imported to the Republic of Belarus, thsd tons Proportion of exchange auctions, % * According to the list, approved by the resolution of the Council of Ministers of the Republic of Belarus dated June 16, 2004 No.714 (HS codes , , , , 7317, 7318, 7320, 7322). Source: National Statistical Committee of the Republic of Belarus DYNAMICS OF WEIGHTED AVERAGE PRICES FOR METAL PRODUCTS ON THE EXCHANGE MARKET in Commodity name December 2014, thsd BYR/ton (incl. VAT) September 2014, thsd BYR/ton (incl. VAT) December 2013, thsd BYR/ton (incl. VAT) December 2014 / September 2014, % December 2014 / December 2013, % reinforcement steel rolled wire disc hot-rolled sheet galvanized sheet cold-rolled sheet water and gas pipe electric-welded pipe ( < 400 mm) angle bar channel bar

21 Dynamics. Quotations. Trends E X C H A N G E situation in the region for a number of reasons, including the decline of the world prices for oil and imposing the sanctions led to the decrease of the price for rolled steel on the Belarusian exchange market by 4-12% (December/September 2014). As a whole, following the 2014 the cost of the main types of rolled steel did not significantly change. Thus, the exchange price index rose by 3.3% (December 2014/December 2013). Export In 2014, the volume of export exchange transactions with scrap and waste of ferrous metals, ferrous metals amounted to thsd tons, which exceeded the corresponding indicator by 1.5 times in As for the sales structure the largest share belonged to properly sized, outclassed metal scrap 25A Grade (the vo - lume of transactions rose by 1.6 times compared to 2013 from 3.6 to 5.7 thsd tons) and steel shavings (growth by 2.2 times from 1.8 to 4.0 thsd tons). In the reporting year Q4 the sellers of scrap and waste of ferrous metals at the exchange auctions were presented by the State Association "Belresursy" and 19

22 E X C H A N G E Dynamics. Quotations. Trends Belvtorchermet OJSC. At the same time two trading sessions for products of ferrous metals export sales produced by Belarusian Steel Works were held, where 22 transactions for the total amount of BYR 2.2 bln were concluded. Procurements were made by 9 companies from Russia, Latvia, Lithuania, Germany and Poland; the leaders among them were presented by Alliance D LLC, PTK Signal LLC and August Sp. z o.o. In 2014 Q4 a decrease of the price for steel scrap was observed at the exchange platform. For example, the price for scrap No. 3, 3Б26 Grade fell by 27% (November/September 2014), the price for scrap 3БР6М5 Grade decreased by 3% (October/September 2014). Thus, after a rise of the prices for commodities in Q3, they returned to the level at the beginning of the year. n SALES STRUCTURE OF SCRAP AND WASTE OF FERROUS METALS AT THE EXPORT EXCHANGE AUCTIONS in (in terms of Grades) Commodity name Grade 2013, tons 2014, tons Reinforcement steel S Disc 25ХГТ properly sized, outclassed metal scrap 25А outsized, outclassed metal scrap 26А steel scrap metal No.2 2Б steel scrap metal No.2 with lower indicators of quality 2Б Б Б Б steel scrap metal No.3 3Б Б Б Б БР6М lightweight steel scrap No.1 11БР3М2 0.3 outsized steel scrap 5Б packages No.1 8Б Б steel shavings No.1 14Б Б Б steel shavings No.2 15Б БР6М steel shavings No.2 with higher impurity 15БМ outsized steel cable and wire 13БНРМ5К unsorted steel cable and wire 13БНРМ5К7 6.0 Total

23 Dynamics. Quotations. Trends E X C H A N G E NON-FERROUS METALS AND PRODUCTS THEREOF Domestic market During 2014 the volumes of exchange transactions with non-ferrous metals and products thereof were hampered with the low business activity of the enterprises that resulted from primarily the low availability of credit resources. Thus, in 2014 Q4, transactions with the commodities under consideration for the total amount of 1.39 thsd tons were concluded at the exchange platform, which is lower than the indicator at the corresponding period in 2013 by 1.5%. Overall, according to the the year the decline accounted for 11.1%. Traditionally, the commodities produced by Russian and Belarusian enterprises were in the highest demand at the exchange auctions (the share in the amount of transactions exceeded 70%), at the same time the share of domestic products increased by 6.4 percentage points in comparison with In total, the products from 28 countries (including Russia, Belarus, Ukraine, Germany, Serbia, Kazakhstan, Denmark, Poland, Sweden, and others) were sold in In the commodity structure the largest share belonged traditionally to metals and alloys, rod and band, in terms of metals products from aluminum, copper and brass. The structure of exchange transactions didn't change significantly in terms of departmental affiliation of the buyers: the organizations of the Ministry of Indus- 21

24 E X C H A N G E Dynamics. Quotations. Trends global market, taking into account the fluctuations of the exchange rate BYR/RUB. Thus, the price for basic types of rolled steel (in BYR) fell by 10%. Over- try and the Ministry of Energy of the Republic of Belarus accounted for the major share traditionally (34.8% and 14.4% respectively). As for the regional structure, the companies from Minsk, Brest and Gomel regions took the leading positions. In the reporting year the largest vo - lumes of non-ferrous metals and pro - ducts thereof were sold by MetallAllians LLC, Colormetall LLC, Beltsvetmet OJSC, Spetsmetpostavka ALC and Crystal Trade PE. The leaders among the buyers were presented by joint venture Brestgazoapparat OJSC, Holding management company "Minsk Motor Plant", MAPID OJSC, Grodnozhilstroy OJSC and Mogilevsky zavod "Electrodvigatel" OJSC. During the period under review the main importer of non-ferrous metals products was traditionally presented by the Russian Federation: the share in the structure of the copper and aluminum products supplies accounted for 88.7% and 61.7% respectively (in kind). In addition, the largest importers of the products were presented by Kazakhstan, China, Germany, Ukraine, Poland, Serbia, the Netherlands and others. In 2014 Q4 the prices for non-ferrous rolled metals changed at the exchange platform in line with the dynamics of the DYNAMICS OF WEIGHTED AVERAGE PRICES FOR PRODUCTS OF NON-FERROUS METALS at the exchange auctions (domestic market) in Сommodity name December 2014, thsd BYR/ton (incl. VAT) September 2014, thsd BYR/ton (incl. VAT) December 2013, thsd BYR/ton (incl. VAT) December 2014/ September 2014, % December 2014/ December 2013, % aluminum alloy AK brass sheet Л aluminum sheet Д16А bronze rod Бр05Ц5С bronze rod БрАЖ copper rod М

25 Dynamics. Quotations. Trends E X C H A N G E all, according to the the year the prices for products in the national currency rose on the average by 10-15%. There was the growing interest of business entities to export exchange auctions with non-ferrous metal scrap in 2014 Q4 and in total according to the the year. Thus, within the period under review the growth of transactions volume in kind amounted to 32.9%, in monetary terms 35.4%. Such dynamics resulted primarily from the increase of sales volumes of aluminum alloys casting almost by 6 times (from 0.4 to 2.3 thsd tons), aluminum scrap by 12.3% (from 0.65 to 0.73 thsd tons) and zinc-containing waste by 1.5 times. UAB VC Baltic from Lithuania, SIA Innovation Systems and SIA Metalekspo from Latvia took the leading positions with regard to procurements volumes of the products under review at the exchange auctions in 2014 Q4 and in total according to the the year. The total number of the buyers reached 23 foreign companies from Lithuania, Latvia, Russia, the UK, Estonia, Canada, Poland, the USA, Germany and Ukraine. The major seller was presented by Beltsvetmet OJSC (more than 98% of the sales volume in kind according to the the year). Export 23

26 E X C H A N G E Dynamics. Quotations. Trends In 2014 Q4 prices for the products at the exchange auctions corresponded to the dynamics of prices at the LME. Thus, price for aluminum for deoxidation (AB87 Grade) fell by 5.3%, price for aluminum alloy casting (AK5M2) by 5.2%, price for brass casting (ЛС Grade) by 4.8% (December/October 2014). Overall, since the beginning of the year prices for this raw material decreased by 1.2%, 2.9% and 12.5% respectively. n SALES STRUCTURE AND VOLUMES OF NON-FERROUS METAL SCRAP, NON-FERROUS METALS at the exchange auctions in (export) Commodity name Grade/standard size 2013, tons 2014, tons Aluminum for deoxidation АВ БрО5Ц6С Bronze casting ingots БрОЦС Group I, Sort Class A. Wolfram and its alloys Group II, Sort 2a scrap and lump waste Group II, Sort Group I, Sort Class A. Cobalt, its compounds and alloys scrap and lump waste Sort Class A. Magnesium and its alloys scrap and lump waste Class A. Copper and copper base alloys scrap and lump waste Group IV, Sort Group XIII, Sort Group IV, Sort 2a 37.6 Group VI, Sort Class A. Copper and copper base Group XIII, Sort 1 alloys scrap and lump waste 3.8 Group XIII, Sort Class A. Molybdenum and its alloys scrap and lump waste Class A. Nickel and its alloys scrap and lump waste Group XIII, Sort Group I, Sort Group I, Sort Group II, Sort Group III, Sort Group III, Sort Group IV (nickel silver), Sort Group V, Sort Class A. Lead and its alloys scrap Group II, Sort and lump waste Group II, Sort Group II, Sort Class A. Titanium and titanium Group II, Sort alloys scrap and lump waste Group II, Sort Class A. Zinc and zinc alloys scrap and lump waste Class АЛ. Scrap and waste of lead batteries Class B. Shavings of copper and copper base alloys Class B. Shavings of nickel and its alloys Group III, Sort Group II, Sort Group II, Sort Group I, Sort Group I, Sort Group XIII, Sort Group III, Sort Group V, Sort Commodity name Class B. Shavings of lead and lead base alloys Grade/standard size 2013, tons 2014, tons Group II, Sort Class B. Shavings of titanium and titanium alloys Group III, Sort Class B. Shavings of zinc and zinc alloys Group III, Sort Class B. Shavings, tangled wire of molybdenum and its alloys Group II, Sort Class B. Shavings, tangled wire of molybdenum and its alloys Group II, Sort Class Г. Other tin-containing Sort waste Sort Sort Class Г. Other waste of aluminum Sort 3 and aluminum alloys Sort Class Г. Other waste of wolfram and its alloys Group I, Sort Class Г. Other waste of copper and copper base alloys Class Г. Other waste of lead and lead alloys Class Г. Other zinc-containing waste Sort Sort Sort Sort Sort Group I, Sort Group I, Sort Group I, Sort Group III, Sort Group I Class К. Alkaline batteries Group II Class Л. Bimetals МЕ1 2.9 Group I. Aluminum based Class H. Catalysts Group II. Copper based Group III. Nickel based Group IV. Zinc based 18.7 Group V. Other metals based ЛС Brass casting ingots ЛСд Aluminum alloys casting АК5М Lead-containing slag Total

27 Dynamics. Quotations. Trends E X C H A N G E COKE Low activity of Belarusian companies resulted in the decrease of coke procurements at the exchange auctions. Thus, 13 transactions totaling 2.3 thsd tons were concluded in 2014 Q4, which is 2.3 times lower than the indicator in Overall in 2014 the sales volumes decrease at the Exchange amounted to 19.1%. Such dynamics was confirmed also by the data of the National Statistical Committee of the Republic of Belarus, accor - ding to which in 2014 imports of the product under review decreased by 1.3 times (in kind) compared to As before, there were commodities mainly produced in Poland at the exchange platform; the products share in the volume of concluded transactions exceeded 97% (in kind). Coke of and 40 fractions was in the highest demand. Overall, in 2014 transactions with coke were concluded by 16 Belarusian enterprises and 9 sellers (including from Latvia, Poland and Russia). The leading positions with regard to procurement volu mes belonged to Minsk Plant of Heating Equipment OJSC, Gomel Foundry Plant "Tsentrolit" OJSC and Smorgon Casting and Mechanical Works KUP. The largest volumes of products were sold by Invest- Stroy LLC, SIA VERTIGO and OSK- Resource LLC. The trend of decreasing the price for the products was observed in 2014 Q4. Thus, the price for coke of 40 fraction declined by 10.8% (in USD/t, November/September 2014), since the beginning of the year by 9.4%. n COAL In the quarter under review 1.2 thsd tons of coal for the amount of BYR 2.1 bln was sold at the exchange platform, which is 1.6 times lower than the corresponding indicator in The largest volumes of the products were purchased by the enterprises of the Ministry of Transport and Communications of the Republic of Belarus, as well as concern Bel gos - pishcheprom 56% and 28% of raw materials respectively (in kind). In the commodity structure coal D Grade produced in the Russian Federa- 25

28 E X C H A N G E Dynamics. Quotations. Trends tion prevailed traditionally and its share accounted for 66% (in kind), while the share of Ukrainian goods decreased by 11 percentage points compared to In 2014, the price for coal was determined by the situation on the Russian market, as well as BYR/RUB exchange rate fluctuations. Thus, in Q4 the prices for raw materials of D Grade did not change significantly (-1.1%, November/September 2014), for the year overall the prices rose slightly by 2.7%. n ELECTRICAL PRODUCTS In 2014 there was an increasing interest of the Belarusian enterprises in electrical products procurements at the exchange auctions. Thus, transactions were concluded for the total amount of BYR bln in Q4, which is 1.64 times (in monetary terms) higher than the corresponding indicator at the same period in Overall, according to the the year the sales volume exceeded the corresponding figure in 2013 by 1.55 times, while the number of transactions at the exchange platform increased by more than 2 times. The commodities of Belarusian and Russian producers were in the highest demand at the exchange auctions over 80% in the total sales volume (in monetary terms). At the same time the share of domestic products grew by 5 percen - tage points compared to Traditionally, cable products were most in demand power cable, high performance telephone cable with poly - ethylene isolation in a plastic cover, fiberoptic cable, flexible cable for general use and telephone low-pair cable (the share of these products in the amount of transactions exceeded 50%). As a whole, the commodities nomenclature was presented by 289 products types, including electric motors, uninterruptible power supplies, installation wire, lamps and others. Reducing the supplies of foreign cable and wire products (HS code 8544) reflects also a growing interest of the Belarusian enterprises in domestic pro - ducts. Thus, according to the data of the National Statistical Committee of the Republic of Belarus, in 2014 the imports volume of the pro ducts under review amounted to USD mln, which is by 33% lower than the corresponding indicator in Such countries as Russia, Poland, Germany and China were the major importers. 26

29 Dynamics. Quotations. Trends ELECTRICAL PRODUCTS IN THE HIGHEST DEMAND at the exchange auctions in 2014 (in monetary terms) Commodity name Amount of transactions, bln BYR power cable 81.8 E X C H A N G E high performance city telephone cable with polyethylene isolation in a plastic cover 31.7 Overall, 104 buyers and 158 sellers concluded transactions at the exchange platform in The largest volumes of products were sold by JV Torimeks LLC, Beltelekabel CJSC, Belaruskabel OJSC, Infokabel CJSC and ElektroKabelKomplekt LLC. The leaders among buyers were presented by Beltelecom RUE, Belaruskali OJSC, Gomelpromstroy OJSC, Torgmash OJSC and Grodnozhilstroy OJSC. In 2014 Q4 the price for cable products increased. Thus, the price for power cable ВВГнг Grade 2* kv rose by 0.6% fiber-optic cable 30.4 electric motor 14.4 flexible cable for general use 11.5 uninterruptible power supply 11.3 installation wire 9.9 telephone low-pair cable 7.6 lamp 7.2 winding wire 5.3 (December/September 2014), as a whole in accordance with the the year the price increase accounted for 6.9%. n FEEDBACK Minsk Plant of Heating Equipment OJSC, a letter dated No. 920 "On successful co-operation" Minsk Plant of Heating Equipment OJSC expresses its deep gratitude and sincere appreciation to Belarusian Universal Commodity Exchange OJSC for responsiveness and technically sound attitude to the work during the whole period of our cooperation. Analysis of the periods of co-operation on participation in the exchange auctions let us make the conclusions that the exchange auctions of BUCE have a number of key advantages, in particular: they provide buyers with the opportunity to choose the commodity at the best price formed in a competitive environment as fast as possible; they accelerate to the greatest possible extent and regulate the trading process, they reduce costs related to trade and procurement activities; they let negotiate the terms of the exchange transactions with one or more counterparties and prepare all documents required within a short period of time. We are well aware that our success resulted from the successful co-operation with BUCE to a large extent. We hope that our successful co-operation will go on and lead to setting our joint work performance at the highest level. n Vasiliy Samoylovich Deputy Director for Commercial Affairs 27

30 E X C H A N G E Dynamics. Quotations. Trends TIMBER MARKET REPUBLIC OF BELARUS In Q4 2014, the timber market of Belarus saw a marked increase in the export of plywood, sawn timber and wood in the rough, which indicates a stable demand for and consumption of these products in European countries. According to the National Statistical Committee, in 2014, some thsd cbm of wood in the rough (HS code 4403) were exported, which is essentially equal to the 2013 figures ( thsd cbm). The main buyers of the Belarusian timber were companies from Poland (purchased a total of thsd cbm, or 71.3%), Lithuania ( thsd cbm), Latvia ( thsd cbm), China ( thsd cbm) and Sweden (55.75 thsd cbm). During the same period the Republic of Belarus exported 1 159,84 thsd cbm of wood sawn lengthwise (HS code 4407), which is 36.2% more than in Traditionally, the top list of importers included Germany ( thsd cbm), Azerbaijan ( thsd cbm), Lithuania ( thsd cbm), Latvia ( thsd cbm), Belgium (97.47 thsd cbm), and the Netherlands (55.05 thsd cbm). According to the National Statistical Committee, in 2014, some thsd cbm of plywood (HS code 4412) were exported. The main buyers were Poland (26.48 thsd cbm, or 19.5%), Germany (18.02 thsd cbm), Russia (16.54 thsd cbm), Lithuania (16.88 thsd cbm), and Azerbaijan (16.31 thsd cbm). EXCHANGE AUCTIONS (EXPORT) In 2014, export sales of timber (in monetary terms, EUR) exceeded the 2013 figures by 3% due to the uptick in the sawn timber and fuel chips exports. In Q4 2014, compared to the same period of 2013, the volume of export transactions with timber declined by 19.5% (in monetary terms, EUR) primarily due to the fall in the volume and price of pulpwood, plywood and sawn timber for packaging sold via the Exchange. 28

31 Dynamics. Quotations. Trends E X C H A N G E The most active buyers of wood in the rough in 2014 were companies from Poland (15 companies; 65.7% of the total exports), Lithuania (13; 10.8%), China (2; 8.2%), Latvia (18; 5.8%), and Austria (2; 4.0%); sawn timber was mainly purchased by companies from Germany (7; 20.2%), Lithuania (30; 17.9%), Latvia (25; 12.4%), Estonia (11; 12.0%) and Great Britain (8; 11.7%). Wood in the rough In Q , some thsd cbm of wood in the rough to the tune of EUR mln were exported via the Exchange, which is 40% less than in 2013 in kind and 58% less in monetary terms. All in all, the sales of timber via the Exchange in 2014 amounted to 87% and 82% of the 2013 figures in kind and in monetary terms (EUR), respectively. Pulpwood accounted for the bulk of wood in the rough export in 2014 reaching thsd cbm, or 79.7% of the total wood in the rough sales. If broken down, pulpwood sales would look as follows: pine thsd cbm (38.3% of the total), spruce thsd cbm (32.0%), birch thsd cbm (26.1%), aspen thsd cbm (2.4%), alder thsd cbm (1.2%). Process raw wood sales totaled thsd cbm (19.1% of the total). EXPORT SALES OF TIMBER at exchange auctions in Rate, % Q Q Q Commodity Q / Q Q / Q thsd cbm mln EUR thsd cbm mln EUR thsd cbm mln EUR thsd cbm mln EUR thsd cbm mln EUR sawn timber (board) sawn timber for packaging sawn timber (total) sawlog pulpwood process raw wood miscellaneous wood in the rough wood in the rough (total) plywood briquettes, pellets, thsd t fuel chips

32 E X C H A N G E Dynamics. Quotations. Trends In the period under review, pulpwood went up in price by 12.7%, spruce by 8.5%, and birch by 4.1% (December/September 2014). Alder and aspen raw wood prices grew by 4-9%. Sawn timber A small fraction of this commodity item in the total sales is primarily the result of government policy that favors domestic particle board manufacturers who are the first to get raw materials so that they could sell their products to foreign buyers. A total of thsd cbm of softwood sawlog and 4.91 thsd cbm of miscellaneous wood in the rough were sold. Making use of exchange warehousing services in Western Europe and Baltic States, 2 purchase and sales transactions for cbm of wood in the rough were concluded at 2014 exchange auctions. 500 cbm were shipped on DAP terms (Incoterms 2010) via the exchange warehouse of IT International (to Kraslava, Latvia) and the remaining cbm via Hudahai/Kena r/w station (to Draugyste, Lithuania). One more cbm consignment was shipped on DAF (border of the Republic Belarus) terms with mandatory use of exchange logistics by the buyer. Compared to Q3 2014, Q saw a boost in exports of sawn timber via the Exchange in both monetary terms and in kind by 37% and 38%, respectively. In the last quarter of the year, sellers usually offer products with the delivery in H1 of the following year. By and large, sawn timber sales in 2014 exceeded 30

33 Dynamics. Quotations. Trends E X C H A N G E those of 2013 by 14% in kind and by 30% in monetary terms (BYR). Throughout 2014, BUCE and its partners actively used exchange logistics services when selling or buying sawn timber. During the year under review, 69 purchase and sales transactions for cbm of sawn timber to the tune of EUR 1.5 mln were concluded. 27 of these transactions involved shipment of 31

34 E X C H A N G E Dynamics. Quotations. Trends In Q4 2014, the shop lumber segment saw a drop in prices compared to the previous quarter due to the seasonal contraction of the demand. For example, exchange quotations on softwood edged board (up to 40 mm and mm wide, up to 150 mm thick, 2-3 grade, moisture content of 20% and higher, FCA) went down by 1-3%. Plywood cbm on DAP terms (Incoterms 2010) and 42 transactions shipment of cbm on FCA terms (Belarusian consignor's warehouse) with mandatory use of exchange logistics by the buyer. Compared to 2013, 2014 sawn timber sales structure was characterized by increasing share of lumber (to 81.4%, or by 6.1 pts) and decreasing share of sawn timber for packaging (to 16.5%, or by 6.7 pts). In the period under review, quotations for softwood and hardwood sawn timber for packaging slightly dropped (by 5-7%, depending on the size). In Q4 2014, 2.23 thsd cbm of plywood to the tune of EUR 0.88 mln were sold at exchange auctions. ФК grade plywood prevailed in the sales structure (65% of the total). Country by country breakdown of the exchange market of plywood in 2014 shows the dominance of Russia (34.0% of the total amount of transac- 32

35 Dynamics. Quotations. Trends E X C H A N G E tions), Great Britain (19.1%) and Azerbaijan (14.1%). Turkish companies that now account for 10.7% of the market also stand out among other buyers. All in all, in 2014, the share of the exchange market of plywood in the total plywood exports reached 21.0%. Pellets and briquettes, fuel chips Throughout 2014, exchange sales of fuel wood were on the rise: a total of thsd cbm of fuel chips to the tune of EUR 16 mln were sold as well as thsd tons of briquettes and pellets to the tune of EUR 1.1 mln. EXCHANGE AUCTIONS (DOMESTIC MARKET) Compared to 2013, exchange sales of timber on the domestic market in 2014 increased (in kind and in monetary terms) for all types of products with the exception of standing wood. Standing wood and logging services The Government programme to reduce the amount of standing wood sold at exchange auctions affected the sales of this commodity in Q and throughout the year. Compared to Q figures, the sales in the period under review accoun - ted for 65% in kind and 70% in monetary terms. Year-on-year drop amounted to 57% and 50%, respectively. More than a third of the entire annual resource was sold in Q ahead of the winter logging season. In 2015, according to laws of the Republic of Belarus, forestries subordinate to the Ministry of Forestry are allowed to sell at exchange auctions only standing wood harvested from the softwood fund in hard-to-reach areas. DOMESTIC SALES OF TIMBER at the exchange auctions in Rate, % Q Q Q Commodity Q4 2014/ Q Q4 2014/ Q thsd cbm bln BYR thsd cbm bln BYR thsd cbm bln BYR thsd cbm bln BYR thsd cbm bln BYR sawn timber sawlog wood in the rough pulpwood process raw wood miscellaneous plywood, particle board standing wood fuel chips logging services fiberboard, particle board, thsd cbm articles for manufacturing PVC windows and doors paper, cardboard thsd sqm thsd m thsd pcs thsd t thsd packs, pcs

36 E X C H A N G E Dynamics. Quotations. Trends In accordance with the current laws, Belarusian Universal Commodity Exchange OJSC is authorized to hold exchange auctions for logging services. Such auctions were first held in 2013, and by late 2014 one could already speak of a fully-formed logging services market. Good evidence to this effect is the quarterly auctions with standing wood logging services held on December 17, Due to tough competition among logging operators the final price for logging ser - vices decreased appreciably compared to the initial one. Another noteworthy trend is increase in the share of transactions concluded by companies other than forestries from 18.7% in 2013 to 23.6% in Forwarder PV, TimStone Ltd. and PROFITSYSTEM Ltd. proved to be last year's most active participants of exchange auctions. Softwood prevailed (in kind) in the timber cutting fund sales structure in Q (industrial wood 37.9%, fuel wood 22.2%). The share of industrial softwood stood at 26.4%, fuel wood 9.2%, and hardwood 4.3%. Compared to the same period of 2013, Q saw a reduction in the share of softwood (by 11.3 pts) with a simultaneous increase in the share of broadleaved timber (by 11.9 pts). Analysis of weighted average quotations for main standing wood species (pine, spruce, birch) sold on the domestic market reveals a spike in sales up to the middle of the period under review (due to the start of the active logging season) with a slight decline in December for both soft and broadleaved wood species. Wood in the rough In Q4 2014, domestic sales of harvested timber reached thsd cbm to the tune of BYR bln, which is more than in 2013 by 31% in kind and by 54% in monetary terms. On the whole, compared to 2013, last year's sales 34

37 Dynamics. Quotations. Trends E X C H A N G E figures were higher by 33% in kind and by 49% in monetary terms. As tradition has it, annual exchange auctions with harvested wood in the rough were held in early November Some 1.3 mln cbm of wood in the rough to the tune of BYR 690 bln were sold during these auctions. Over 350 buyers and 110 sellers took active part in the trading sessions. In addition, 63 transactions to sell about 580 thsd cbm of wood in the rough with quarterly price adjustment during the delivery period were concluded. In 2014, the sales structure of this type of timber looked as follows: sawlog of broadleaved and softwood species 57.3% (57.6% in 2013), process raw wood 21.7% (17.4%), pulpwood 10.2% (9.9%), veneer log 4.9% (7.9%), miscellaneous wood in the rough 5.9% (7.2%). Compared to the previous quarter, Q saw a spike in weighted average prices for harvested timber (main commodity items) at the beginning of the period under review followed by gradual stabilization in December. A price hike in October was mainly caused by a marked contraction of sawlog supplies (while the average supply over 9 months of 2014 was about 42 thsd cbm, in October it barely reached 20 thsd cbm), which inevitably inflated the prices due to high and stable demand for these products. The deficit of raw materials at the beginning of the quarter was the result of exchange auctions to sell the annual timber reserve in November 2014 (over 1 mln cbm of softwood sawlog were put up for sale), which helped meet the inte - rests of all buyers and ultimately stabilize the price for this type of timber. n 35

38 E X C H A N G E Dynamics. Quotations. Trends AGRICULTURAL PRODUCTS In 2014, 549 trading sessions were held at the exchange platform, within which transactions for the total amount of BYR bln were concluded, which is lower by 19.7% than the indicator in The negative dynamics in the 1st half of 2014 resulted from a significant decrease of export sales of dairy and meat products. However, since the enactment of the ban on importing agricultural products to Russia from a number of countries (the decision of the Government of the Russian Federation dated No.778) there were revitalizing the exchange market of agricultural products and active export exchange auctions with dairy products. Quite active exchange auctions for export sales of oil and rapeseed oilcake should be noted: in 2014 the share of these goods in the total volume of transactions amounted to 10.28%. In 2014, the largest share in the structure of exchange transactions (in monetary terms) belonged traditionally to oilcakes of oil-bearing crops and feed additives (36.36% and 17.12% in monetary terms, respectively). from Argentina and other foreign countries to the Russian market, as well as lifting of the ban on the import of goods from New Zealand company Fonterra. At the same time since August 2014 (the entry into force of the ban on import of agricultural products to the Russian Federation from the US, the EU and other countries) revitalizing the exchange auctions with dairy products, a significant increase of sales volumes and selling prices and, as a result, an increase of additional revenue of Belarusian sellers were admitted. However, EXPORT There were sold thsd tons of domestically produced goods for the total amount of BYR bln (equivalent to USD mln) at the export exchange auctions at the section of agricultural products in 2014, which makes up 40% (in monetary terms) of the total volume of the exchange market of agricultural products. In 2014 the volume of transactions in monetary terms fell by 36.66% in comparison with The negative trend was determined to a large extent by a decrease of the number of transactions with dairy products, which resulted from supplies of low-quality dairy products 36

39 Dynamics. Quotations. Trends E X C H A N G E VOLUMES OF EXCHANGE TRANSACTIONS WITH AGRICULTURAL PRODUCTS in (export) Commodity thsd tons 2014 Q1 Q2 Q3 Q4 bln BYR thsd tons bln BYR thsd tons bln BYR thsd tons bln BYR thsd tons 2014 (total) 2013 (total) bln BYR thsd tons bln BYR casein skimmed milk powder whole milk powder dairy products cheese cottage cheese whey butter cattle raw hides vegetable oils sunflower oil rapeseed oil flour and cereal rapeseed oilcake salt meat Total there was the decline resulted from the unstable situation on the Russian currency market at the end of Milk powder (Skimmed milk powder, Whole milk powder). Whey. Cottage cheese 1.34 thsd tons of skimmed milk powder for the amount of USD 3.92 mln (equivalent to BYR bln) and 0.27 thsd tons of whey and cottage cheese for the amount of USD 0.33 mln (BYR 3.6 bln ) were sold in Q4. It should be noted that the volume of exchange transactions concluded with skimmed milk powder increased by 30.09% in kind in comparison with Q3, and all products were sold to the Russian Federation. As a whole, 4.41 thsd tons of skimmed milk powder were sold at the exchange auctions in 2014, which is lower by 60.3% than in Such dynamics results primarily from the overall decline of these products export. Thus, according to the data of the National Statistical Committee of the Republic of Belarus, the export sales amounted to thsd tons for the amount of USD mln in 2014, which is lower by 3.80% (in kind) than the corresponding indicator in As for the sales structure, the main buyers of Belarusian skimmed milk powder were traditionally presented by the enterprises from the Russian Federation (94%) and the Republic of Kazakhstan (6%). Within 2014 Q4 the minimum recommended prices of the Ministry of Agriculture of the Republic of Belarus were adjusted once. Since this indicator has been set at the following level: skimmed milk powder 2.71 USD/kg, whole milk powder 37

40 E X C H A N G E Dynamics. Quotations. Trends 3.2 USD/kg, whey powder 1.16 USD/kg (FCA, 100% prepayment). At the exchange platform the prices accounted for: skimmed milk powder RUB/kg (-8.38%, December/September 2014); whey powder 1.16 USD/kg. As a whole, the transactions with these products were concluded by 3 sellers and 3 buyers, and the largest volumes were bought by Milkom Trade LLC. The leader among sellers was presented by Bellakt OJSC. Rennet cheeses 0.86 thsd tons of rennet cheeses for the amount of USD 4.36 mln (equivalent to BYR bln) was sold at the exchange auctions in 2014 Q4, which is lower by 31% (in kind) than the corresponding indicator last year. Overall, 3.35 thsd tons of rennet cheeses for the amount of USD mln (equivalent to BYR bln) were sold at the exchange auctions in 2014, which is less by 35% (in kind) than in For reference: according to the data of the National Statistical Committee of the Republic of Belarus, in 2014 exports of rennet cheeses 38

41 Dynamics. Quotations. Trends E X C H A N G E accounted for thsd tons for the amount of USD mln, which exceeds the figure at the same period in 2013 by 21.69% (in kind). The major buyers of this product were presented as before by the organizations of the Russian Federation (98%). The growth of demand from Russian buyers contributed to the increase of prices for the products. For example, the average monthly quotation for cheese with fat 50% amounted to RUB/kg in December in the year under review (+22.57%, December/September 2014). In accordance with the practice established the minimum export prices recommended by the Ministry of Agriculture and Food of the Republic of Belarus were increased by 3 times, and at the end of the quarter under review they accounted for (FCA, 100% prepayment): for the products with fat of 30%, 40% and 45% 4.65 USD/kg, with fat of 50% 4.75 USD/kg. Within the period under review 8 Belarusian enterprises and 10 buyers from Russia concluded the transactions at the exchange platform. The leaders by volumes of procurements were Optmoltorg LLC and LiderPro LLC. The largest volumes of the commodity were sold by Slutsky Cheese Plant OJSC and Milkavita OJSC. Overall, 4.74 thsd tons of butter for the amount of USD 24 mln (equivalent to BYR bln) were sold at the exchange auctions, which is almost two times less (in kind) than the figure in After the long-lasting period of the price decline (since December 2013) due to the current economic situation on the global market, the high activity of Russian consumers resulted in the growth of the products price. Thus, given that the Butter In 2014 Q4, 0.92 thsd tons of the products for the amount of USD 3.98 mln (equivalent to BYR bln) were sold at the exchange platform. Compared to last year the decline of sales volumes accounted for 11% (in kind). For reference: according to the data of the National Statistical Committee of the Republic of Belarus, in 2014 exports of butter amounted to 68,83 thsd tons for the amount of USD mln, which is higher by 3.63% (in kind) than in The main buyers of the Belarusian products were traditionally presented by the companies from Russia (96%) and Kazakhstan (3%). 39

42 E X C H A N G E Dynamics. Quotations. Trends minimum export prices recommended by the Ministry of Agriculture and Food of the Republic of Belarus for butter with 72.5% fat accounted for 175 RUB/kg (FCA, 100% prepayment), 82.5% fat 195 RUB/kg on , these indicators grew to and RUB/kg respectively at the end of the period under review. In December 2014 the prices for butter were set at the following level at the exchange platform (FCA, 100% prepayment): butter with 72.5% fat RUB/kg; butter with 82.5% fat RUB/kg. Thus, the increase of the prices for butter in 2014 Q4 amounted to 19.06% and 9.50% respectively. As a whole, within the period under review 17 Belarusian enterprises and 8 buyers concluded transactions at the exchange platform. The largest share in the structure of procurements volumes belonged to Autspan International LLC and TPK "Prodmol" LLC. The leaders by sales volumes were presented by Kalinkovichi Dairy Combine UE and Bellakt OJSC. Casein In 2014 Q4 at the exchange platform 218 tons of casein for the amount of USD 1.68 mln (equivalent to BYR 18 bln) were sold for export, which is lower by 14% (in monetary terms) than the corresponding figure in For reference: according to the data of the National Statistical Committee of the Republic of Belarus, export of casein amounted to 2.94 thsd tons for the amount of USD mln in 2014, which is less by 23% (in kind) than last year. The main importers of this product were presented by the organizations from Germany (35%), Poland (21%) and Russia (21%). Overall, in 2014 at the exchange auctions 1.04 thsd tons of technical casein for the amount of USD 9.30 mln (equivalent to BYR bln) were sold, which is lower by 46% (in kind) than the indicator in In accordance with the global trends, after the significant increase in the summer of 2014 the exchange quotation 40

43 Dynamics. Quotations. Trends E X C H A N G E decreased by 15% in December this year (December/September) and it amounted to 7.72 USD/kg. During 2014 Q4, 6 companies from Lithuania, the US and Russia bought technical casein via the exchange auctions, and 5 Belarusian enterprises participated in the exchange auctions as sel - lers. American Casein Company took the leading position with regard to procurements volumes. The largest volumes of products were sold by Molodechno Milk Factory OJSC and Berioza Cheese-producing Plant OJSC. Meat 22 trading sessions were held in 2014 Q4, where 0.18 thsd tons of meat for the amount of USD 0.57 mln (equi- valent to BYR 6.10 bln) was sold, which is less by 77% (in kind) than the figure of the previous quarter. Such dynamics resulted from the ban on export of Belarusian meat products to the Russian Federation in November For reference: according to the data of the National Statistical Committee of the Republic of Belarus, export of cattle meat and pork (HS Codes 0201, 0202 and 0203) fell by 30% in kind in 2014 compared to The average monthly quotation for halfcarcasses of cows frozen amounted to 155 RUB/kg at the exchange platform in December The growth of prices accounted for 4.6% in Q4 compared to Q3. As a whole, 5 Belarusian enterprises and 3 Russian importers concluded transactions with the products under review in 2014 Q4. The largest volumes of the products were sold by Luban Koopprom UE and Drybin District Consumer Cooperative Society. The leader among the buyers was presented by Vector LLC. Rapeseed oil and oilcake thsd tons of rapeseed oil and oilcake for the amount of USD mln (equivalent to BYR bln) were sold in 2014 Q4. Overall, thsd tons of rapeseed oil and oilcake for the amount of USD mln (equivalent to BYR bln) were sold at the exchange auctions in 2014, which is higher by more than 20 times (in kind) than the figure of the previous year. In December 2014 the average monthly quotation for rapeseed oil unrefined Grade 1 amounted to 540 EUR/t (FCA, prepayment) at the exchange platform. In the quarter under review 3 Belarusian enterprises and 9 buyers from Lithuania, Estonia and Russia concluded the exchange transactions. The largest volumes of the products were sold by Vitebsk Oil Extraction Plant OJSC. UAB LITBELINVEST and AB Linas Agro were the leading buyers of the products at the exchange platform. 41

44 E X C H A N G E Dynamics. Quotations. Trends DOMESTIC MARKET In 2014 Q4 the exchange market of agricultural products was characterized by a slight decrease of business activity of the exchange auctions participants, which had a negative impact on dynamics of the transactions conduction. Thus, the sales volumes fell by 28.6% (in monetary terms) compared to the previous quarter, which resulted from a decrease of procurements volumes of soy oilcake to a large extent. Compared to 2013 Q3 the amount of exchange transactions declined less significantly by 13%. Overall, in the reporting year the volume of exchange auctions with agricultural products on the domestic market accounted for thsd tons for the amount of BYR bln. Traditionally oilcakes of oil-bearing crops took the leading position in the sales structure of the products in kind (77%). Oilcakes of oil-bearing crops In 2014 Q4 the volume of exchange transactions with oilcakes of oil-bearing crops amounted to thsd tons (including soy oilcake thsd tons, sunflower oilcake thsd tons) for the amount of BYR bln. 29 sellers from Russia, Kyrgyzstan, Belarus and Switzerland and 25 buyers concluded the exchange transactions. The largest volumes of the products (in monetary terms) were bought by Agrokombinat "Dzerzhinskiy" OJSC, Poultry Plant "Druzhba" OJSC, Poultry Plant "Rassvet" OJSC and Polotsk combine of bread products OJSC. The leaders by volumes of sales (in monetary terms) were presented by TDS LLC, Fatexpro AG and AGD FUE. In comparison with 2014 Q4 the procurements volumes of this commodity decreased (in monetary terms) by 28.6%. This dynamics resulted from the longterm transactions with significant volu - mes of oilcakes concluded in Q3. Commodity thsd tons 2014 Q1 Q2 Q3 Q4 bln BYR thsd tons bln BYR thsd tons bln BYR thsd tons bln BYR 2014 (total) 2013 (total) cattle raw hides monocalcium phosphate, feed additives and oilcakes endocrine-enzyme raw materials pork and poultry vegetable oils and oilseeds oilcakes SALES VOLUME OF AGRICULTURAL PRODUCTS at the exchange auctions in (domestic market) sunflower oil rapeseed oil soy oil seeds rapeseed meal sunflower meal soy meal ballast, cement butter skimmed milk powder cereals mineral fertilizers plant-protecting agents Total thsd tons bln BYR thsd tons bln BYR 42

45 Dynamics. Quotations. Trends E X C H A N G E The price for oilcakes of oil-bearing crops at the exchange market within the period under review showed multidirectional dynamics. In December 2014 the average monthly quotations reached: Domestic market (postponement, incl. VAT): sunflower oilcake thsd BYR/t (+2.4% compared to September 2014); soy oilcake thsd BYR/t (+4.86% compared to August); Import (postponement, DAF border of the Republic of Belarus, excl. VAT) in December 2014: sunflower oilcake 246 USD/t (+10.31% compared to September); soy oilcake 518 USD/t (-10.21% compared to September). Overall, in 2014 the Belarusian companies bought thsd tons of oilcakes via the exchange auctions for the amount of bln BYR, which is lower than the indicator in 2013 by 10.8% (in monetary terms). According to the data of the National Statistical Committee of the Republic of Belarus, thsd tons of sunflower oilcake for the amount of USD mln were imported to the country from Russia, Ukraine and Moldova, and thsd tons of soy oilcake for the amount of USD mln from Argentina, Brazil, Lithuania, Germany, Denmark, Serbia, Ukraine and Russia. Compared to the same period last year supply of soy oilcake increased by 18.25%, sunflower oilcake by 8.05% (in kind). Vegetable oils In 2014 Q4 Belarusian enterprises purchased 140 tons of sunflower oil for the amount of BYR 1.42 bln and 700 tons of rapeseed oil for the amount of BYR 5.98 bln. 2 buyers (Belorusneft-Osobino SE was the largest of them) and 4 sellers (Zernoinvest LLC took the leading position) participated in these exchange auctions. Compared to the same period in 2013 sales of vegetable oils increased by more than 1.5 times in kind and in mo - netary terms. 43

46 E X C H A N G E Dynamics. Quotations. Trends However, in comparison with the previous quarter in 2014 the volume of transactions concluded with vegetable oils decreased by 9.7% and 4.3% respectively. The average monthly quotation for sunflower oil Grade 1 (prepayment, exwarehouse of the seller, excl. VAT) amounted to thsd BYR/t in December 2014 (-1.8% compared to August 2014). Feed additives and monocalcium phosphate In 2014 Q4 the Belarusian companies bought 8.61 thsd tons of feed additives (including feed phosphates 1.21 thsd tons; feed flour, oilcakes and other additives 7.4 thsd tons) for the total amount of BYR bln at the exchange auctions, which is more by 18.19% in mo - netary terms and by 35% in kind than in 2014 Q3. 42 sellers from Belarus and Latvia and 26 domestic buyers concluded transactions with these commodities via the exchange auctions. The largest volumes of the products were purchased by Poultry Plant "Rassvet" OJSC, Alexandriyskoye OJSC and Agrokombinat "Skidelsky" OJSC. The leaders by sales volumes were presented by Biocom Agro LLC, Servolux CJSC and Ekomol Agro CJSC. In comparison with 2013 Q4 the vo - lume of exchange transactions with these products increased by 78% in monetary terms and by 77% in kind. Overall, in 2014 the growth of feed additives and phosphates procurements accounted for 75% (in monetary terms) compared to During 2014 Q4 the exchange quotations for feed additives and phosphates demonstrated an upward trend. The ave - rage monthly quotation for monocalcium phosphate (Grade 1) amounted to thsd BYR/t in December 2014 (+54% compared to September 2014), for feed flour thsd BYR/t (+4% September 2014). Meat tons of poultry meat for the amount of BYR 10.1 bln, 0,1 thsd tons of beef for the amount of BYR 6.07 bln and 689 tons of pork for the amount of BYR bln were sold at the exchange auctions in 2014 Q4. The transactions with poultry and pork were concluded by 5 sellers from Poland, Great Britain, Latvia and Lithuania and 8 buyers from the Republic of Belarus. The largest volumes of the commodity were bought by Slonim Meat Processing Plant OJSC and Grodno Meat Processing and Packing Factory OJSC. The leaders by sales volumes were presented by Transatlantic Food Industries LLP and UAB Triados. In November 2014 the exchange quotations for chicken meat mechanically deboned (chicken, frozen, CPT, postponement) amounted to 0.63 EUR/kg (-8.7% compared to September 2014). n Information for the column "Dynamics. Quotations. Trends" was prepared by the Information and Analysis Division of the Strategic Development Department of Belarusian Universal Commodity Exchange OJSC 44

47 Monitoring E X C H A N G E RATING OF THE EXCHANGE AUCTIONS PARTICIPANTS Belarusian Universal Commodity Exchange OJSC determines the rating of the exchange commodity market participants for promotion of the most active of them and additional stimulation of other clients. Q Q Company s name Rating Q METAL PRODUCTS Q International Paper Kwidzyn Sp. z o.o. (Poland) IKEA INDUSTRY POLAND Sp. z o.o. (Poland) PISEC GmbH. (Austria) Silva Sp. z o.o. (Poland) UAB Diverus (Lithuania) SIA Rottneros Baltic (Latvia) Andrzej Pylko AGIS (Poland) SIA IT INTERNATIONAL (Latvia) UNILES s.r.o. (Slovakia) Good Trade (HK) Limited (Hong Kong) Q Company s name Rating Company s name Rating Q Promtechmontazh OJSC Gomelpromstroy OJSC Rogachev milk canning plant OJSC Grodnozhilstroy OJSC MAPID OJSC Minskenergo RUE Grodnopromstroy OJSC Grodnogasstroyisolation OJSC Stroytrest No.7 OJSC Trest "Remontazhstroy" UE 1.35 Q Optmoltorg LLC TIC "Prodmol" LLC Milcom Trade LLC Outspan International LLC Ecomilk LLC buyers (Belarus) of oilseeds and vegetable oils (import, domestic market) Q buyers (Belarus) of ferrous metals and products thereof (import, domestic market) buyers of round timber (export) buyers (Russia) of dairy products (export) Company s name Rating Q Agrokombinat "Dzerzhinskiy" OJSC Poultry Plant "Rassvet" OJSC Poultry Plant "Druzhba" OJSC Alexandriyskoe OJSC Agrokombinat "Skidelskiy" OJSC TIMBER Q Q AGRICULTURAL PRODUCTS Company s name Rating Q Malag & Soltau GmbH. (Germany) Woodbakers AS (Estonia) UAB PRASLAS (Lithuania) FHG Satim Bela Russia B.V. (Netherlands) PRO-IMPEX Vertriebs GmbH. (Germany) UAB SAKUONA (Lithuania) ASTERCO LTD (GB) Apollon company (Azerbaijan) WoodPAV s.r.o. (Slovakia) MM.ORBITA LTD (Azerbaijan) Q Company s name Rating Company s name Rating Q Belmetall OJSC Metallurgy Company Promstroymetall DLC Ramtex-trading LLC Terrastal LLC OP NII PKD LLC STS-Belpolyplastic UE SarmatTermo-Engineering LLC BelPromstroycontract LLC Steel materials LLC Beltorgenergo LLC Q Slutsky cheese-making plant OJSC Volkovysk OJSC "Bellakt" Kalinkovichi Dairy Combine UE Molodechno Milk Processing Plant OJSC Milkavita OJSC 5.44 sellers of oilseeds and vegetable oils (import, domestic market) Q sellers (Belarus) of ferrous metals and products thereof (import, domestic market) buyers of sawn timber (export) sellers (Belarus) of dairy products (export) Company s name Rating Q TDS LLC (Russia) Fatexpro AG (Switzerland) Servolux CJSC (Belarus) AGD Foreign UE (Belarus) Biocom Agro LLC (Belarus)

48 E X C H A N G E Monitoring buyers (Belarus) of ferrous metals and products thereof (import, domestic market) 2014 overall METAL PRODUCTS sellers (Belarus) of ferrous metals and products thereof (import, domestic market) 2014 Company s name Rating Minskenergo RUE Promtechmontazh OJSC Gomelpromstroy OJSC Belaruskali OJSC Mozyr Oil Refinary OJSC MAPID OJSC Dorstroyindustriya OJSC Rogachev milk canning plant OJSC Grodnozhilstroy OJSC Molodechno Metal Structures Plant OJSC Company s name Rating Minskenergo RUE Promtechmontazh OJSC Gomelpromstroy OJSC Belaruskali OJSC Mozyr Oil Refinary OJSC MAPID OJSC Dorstroyindustriya OJSC Rogachev milk canning plant OJSC Grodnozhilstroy OJSC Molodechno Metal Structures Plant OJSC 1.50 buyers of round timber (export) TIMBER buyers of sawn timber (export) 2014 Company s name Rating International Paper Kwidzyn Sp. z o.o. (Poland) Silva Sp. z o.o. (Poland) IKEA INDUSTRY POLAND Sp. z o.o. (Poland) Good Trade (HK) Limited (Hong Kong) Mondi Swiecie S.A. (Poland) PISEC GmbH. (Austria) UAB Diverus (Lithuania) UNILES s.r.o. (Slovakia) MULTON Sp. z o.o. (Poland) UAB BillerudKorsnas Lithuania (Lithuania) Company s name Rating Malag & Soltau GmbH. (Germany) Woodbakers AS (Estonia) UAB PRASLAS (Lithuania) ASTERCO LTD (GB) Apollon company (Azerbaijan) SIA SV timber trading (Latvia) DELFRONT IMPORT LLP (GB) MM.ORBITA LTD (Azerbaijan) PRO-IMPEX Vertriebs GmbH. (Germany) UAB SAKUONA (Lithuania) buyers (Russia) of dairy products (export) AGRICULTURAL PRODUCTS sellers (Belarus) of dairy products (export) 2014 Company s name Rating TIC "Prodmol" LLC Outspan International LLC Company "Spectrum" LLC Optmoltorg LLC Ecomilk LLC buyers (Belarus) of oilseeds and vegetable oils (import, domestic market) Company s name Rating Agrokombinat "Skidelskiy" OJSC Belorusneft-Osobino RUE Poultry Plant "Druzhba" OJSC Agrokombinat "Dzerzhinskiy" OJSC Alexandriyskoe OJSC Company s name Rating Slutsky cheese-making plant OJSC Volkovysk OJSC "Bellakt" Kalinkovichi Dairy Combine UE Molodechno Milk Processing Plant OJSC Lida Milk Plant OJSC sellers of oilseeds and vegetable oils (import, domestic market) Company s name Rating TDS LLC (Russia) IMPEXSERVICE JLLC (Belarus) AGD Foreign UE (Belarus) Biocom Agro LLC (Belarus) Fatexpro AG (Switzerland)

49 Monitoring E X C H A N G E buyers SECTION OF INDUSTRIAL AND CONSUMER GOODS sellers 2014 Company s name Rating Gomelpromstroy OJSC Grodnozhilstroy OJSC Grodnopromstroy OJSC Belenergostroy SE Brestdorkomplekt UE Stroitelny trest No.8 OJSC Borisovdrev OJSC Gomel House-Building Plant OJSC Brest waste processing plant SE Belzheldorsnab UE Company s name Rating Felix JLLC Broker of exchange logistics LLC Isolation OJSC Brest-Optimal CJSC Industry of Climate Plant LLC Belresursbrok PE PAVek ALC OP NII PKD LLC PolyplastCHEM LLC Belmetall OJSC 1.47 exchange brokers Rating by volumes of transactions Exchange broker's name Rating by quantity of transactions 1 Brestdorkomplekt UE 10 2 Broker of exchange logistics LLC 2 3 PAVek ALC 6 4 Centre of exchange services Mogilev UE 1 5 Belresursbrok PE 9 6 Belmetall OJSC 9 7 BirZhex CJSC 7 8 Vatolstroy LLC 13 9 Belspetscontract RUE 4 10 Stroykomplekt OJSC 3 11 Energy-LTD ALC AlliancePromSnab LLC KCV UE 5 14 Deryabin Trade Service PE Bellesexport UE Belresursy SE management company of the holding Belresursy 11 Rating by volumes of transactions Exchange broker's name Rating by quantity of transactions 17 StalSnabInvest LLC Flipt PE 8 19 Belteploisolation OJSC Leader-Engineering Brok LLC Anshans plus LLC Aniskevich N.P. PE Vestbelproject group LLC Chermetsklad LLC Trigubovich V.O. PE Belcoopvneshtorg Belcoopsoyuza PUE RegionEnergo LLC AgroBroker PUE Sokol L.L. PE BRK-metal ALC Brok Alternative LLC SortKomplekt CJSC 18 THE RATING OF TRADING ACTIVITY OF EXCHANGE BROKERS IN 2014 Rating by volumes Rating by the number Rating by the number Exchange broker s name of transactions (BYR) of active clients of transactions E M T A E M T A E M T A Bellesexport UE Belmetall OJSC Belarusian Forestry company SE Leader-Engineering Brok LLC Stroykomplekt OJSC Anshans Plus LLC PAVek ALC BirZheks CJSC Belresursy SE - management company of the holding Belresursy Belresursy SE management company of the holding Belresursy Broker of exchange logistics LLC Deryabin Trade Service PE IMPEKSSERVICE JLLC Infocomcentre UE Belresursbrok PE Belarustorg SE

50 E X C H A N G E Monitoring Rating by volumes Rating by the number Rating by the number Exchange broker s name of transactions (BYR) of active clients of transactions E M T A E M T A E M T A Beltorgenergo LLC VYMPEKS Crown UE Colormetall LLC AlliancePromSnab LLC KCV UE Vatolstroy LLC Minoblmyasomolprom SE - management company of the holding Myasomolprom Centre of exchange services Mogilev UE Belspetscontract RUE SEVERSTALBEL CJSC Housing and Communal Services Department of Grodno Regional Executive Committee Minskcontract OJSC Brok Alternative LLC GOR PE BELVTORMET SE Borovka CUPE Flipt PE PROFITSYSTEM JLLC BelMetallservice UE SK Ratomka LLC EMAKOSERVICE LLC INTERSTAL VU PE BELMETTECHNICA LLC ALKOMP UE Business asset LLC Lekspol-Invest LLC BRK-METALL ALC BELTEPLOISOLATION OJSC Belagromash SE METALLOYL LLC Mechel Service Bel LLC Vitebsk concern "Meat and dairy products" SE BELFOLGSNABIMPORT LLC EUPHORIA-S LLC Artfood LLC AVABI LLC Vitebsk State Production Forestry Association Trading house "Zurbagan" LLC Iceberg-Med ALC Minsk region BELSTROYMATERIALY OJSC GASSTROYSTANDARD LLC RegionEnergo LLC SortKomplekt CJSC BELROSIMPEKS ALC UPTK spetsrabot SUCSE MEGAEXPRESS PUE AgroBroker PUE SYMTEX-M LLC Vitebsk oblagroservice OJSC Trigubovich V.O. PE Apriori-Agra LLC BELTRIOMET ALC ARESA-SERVICE-KOMPLEKT LLC STALSTROY PE BELTECHCOMSERVICE LLC StalSnabInvest LLC Aniskevich N.P. PE COMPANY METAL-KOMPLEKT of the RB LLC NPP GERDA UE BINIT PLUS LLC METALLINOKS PLUS LLC Belagroservice RA Dmitruk A.M. PE Vestbelprojekt group LLC BZRM OJSC BGTA ALC BELKOOPVNESHTORG BELCOOPSOYUZA PUE DANVEST PE Mogilev Branch of the BCCI UE Sokol L.L. PE E at the Exchange on the whole M at the section of metal products T at the section of timber A at the section of agricultural products The ratings were prepared by the Information and Analysis Division of the Strategic Development Department of Belarusian Universal Commodity Exchange OJSC. 48

51 EXCHANGE BULLETIN The Certificate of Registration No issued on February 3, 2010 by the Ministry of Information of the Republic of Belarus. Issued since May Publisher Belarusian Universal Commodity Exchange OJSC. Chief Editor Arkady Salikov Chairman of the Board. Drafting Commitee: Chairman of the Drafting Commitee A. Zaretsky Deputy Chairman. Deputy Chairman of the Drafting Commitee S. Popudrenko Deputy Chairman Chief Engineer. E. Bureiko Head of Metal Products Department. V. Dereshov Head of Agricultural Products Department. P. Ignatovich Head of Logictics Department. S. Kudryavtsev Head of Design Division of the Strategic Development Department. E. Malyshev Head of Timber Products Department. S. Moiseychik Head of Methodology and Development Department. K. Pilkevich Head of Goverment Procurement Department. N. Tarasov Head of Legal Department. V. Torchik Strategic Development Director. A. Zhukov Head of Information Security Department. The number was made by: Translation Foreign Relations Division of BUCE. The Editor O. Belenkaya. Imposition P. Sankevich. Address of the Publisher: 2, Kazintsa Str., , Minsk, The Republic of Belarus. Phone ( ) Put into type Put into print Format 20.4х29.1. Font Helios. Cond. print. l Cond.-edit. l Price: BYR. Belarusian Universal Commodity Exchange OJSC. Reprinting of materials from the Exchange Bulletin is allowed only by the written permission of the editors. In case of use and quoting, reference to the Exchange Bulletin is obligatory. CONTACTS HEAD OFFICE Phone/fax ( ) , OFFICIAL WEBSITE ADDRESS 2, Kazintsa St., , Minsk, The Republic of Belarus METAL PRODUCTS DEPARTMENT Phone ( ) , TIMBER PRODUCTS DEPARTMENT Phone ( ) AGRICULTURAL PRODUCTS DEPARTMENT Phone ( ) , GOVERMENT PROCUREMENT DEPARTMENT Phone ( ) SECTION OF CONSUMER AND INDUSTRIAL GOODS Phone ( ) TRANSACTIONS FULFILLMENT CONTROL DEPARTMENT Phone ( ) STRATEGIC DEVELOPMENT DEPARTMENT тел. ( ) METHODOLOGY AND DEVЕLOPMENT DEPARTMENT Phone ( ) LOGICTICS DEPARTMENT Phone ( ) EXCHANGE TECHNOLOGIES DEPARTMENT Phone ( ) LEGAL DEPARTMENT Phone ( ) ARBITRATION Phone ( ) FINANCIAL AND ECONOMIC OFFICE Phone ( ) BREST BRANCH 2, Gogolya St., , Brest Phone ( ) , GOMEL BRANCH 12, Katunina St., , Gomel Phone/fax ( ) , GRODNO BRANCH 85, Novaja St., , Grodno Phone/fax ( ) , MOGILEV BRANCH 19, Kosmonavtov St., , Mogilev Phone/fax ( ) , VITEBSK BRANCH 7, Zhestkova St., , Vitebsk Phone/fax ( ) , REPRESENTATIVE OFFICE IN THE RUSSIAN FEDERATION 119, Mira Av., VVC, building 18, , Moscow, Russia Phone/fax (+7 495)

52