Russian Federation

Facts and Figures

January 2011
Russian Federation – Key Social and Economic Data

Capital – Moscow State border:

Russia is located in the eastern part of
Europe and in the northern part of Asia
Total area1 - 17,098.2 thousand sq.km (as
of 1 January 2009 agricultural acreage
amounted to 13% of the total area, forests –
51%, surface waters (including marsh) –
13%)
Population as of 1 January 2010
141,914.5 thousand people
North-west – Norway and Finland;
West – Poland, Estonia, Latvia,
Lithuania, and Belarus;
South-west – Ukraine;
South – South Ossetia, Abkhazia,
Azerbaijan, Georgia, and Kazakhstan;
South-east – China, Mongolia,
Democratic People’s Republic of
– Korea;
East (marine) – the USA and Japan

Density of the population as of 1 January Longest rivers, km:

2010 – 8.3 people per sq.km Lena 4,400
Irtysh 4,248
Maximum length, thousand km: Ob 3,650
Longitudinal direction - 4 Volga 3,531
Latitudinal direction - 9 Enisey 3,487
Amur 2,824

Russia is washed by: Largest lakes, thousand sq.km:

Seas of the Arctic Ocean (Barents Sea, Baikal 31.5
White Sea, Kara Sea, Laptev Sea, East- Ladoga 18.1
Siberian Sea, Chukotka Sea)
Onega 9.7
Seas of the Pacific Ocean (Bering Sea,
Okhotsk Sea, Sea of Japan) Highest elevation, m:
Seas of the Atlantic Ocean (Baltic Sea, Elbrus 5,642
Black Sea, Azov Sea)

Largest islands, thousand sq.km Average temperatures:

Archipelago Novaya Zemlya 82.6 January from 0°,-5°С (Northern
Sakhalin 76.4 Caucasus) to -40°, -50°C (east of
Saha (Yakutia) where the lowest
Archipelago Novosibirsky 38 temperatures can reach -65°, -70°C);
Archipelago Severnaya Zemlya 37 July from 1°С (northern Siberian
coast) to 24-25°C (Caspian lowlands)
The Russian Federation has the largest area in the world; it is ninth by population globally2
and sixth by GDP denominated in USD at purchase power parity3.

1st by total area,

6th by GDP3

1
Source: Russian Register.
2
According to preliminary data.
3
Source: World Bank 2009.
 Map of Russia

North-Western
Federal Area
Far East Federal
Area
Central Federal
Area
MOSCOW
Ural Federal
Area
Volga Federal
Area
Southern
Federal Area
Siberian
Federal Area

North Caucasus
Federal Area
State Structure

Administrative Entities as of 1 January 2010

Republics 21
Krais 9
Regions 46
Cities of federal importance 2
Autonomous regions 1
Autonomous okrugs 4
Districts 1,868
Cities (incl. cities of federal importance) 1,099
Municipal districts and okrugs 328
Townships 1,295

According to the estimate as of 1 January 2010, the Russian Federation has 11 cities with a
population of more than 1 mln people: Moscow (10.6 mln), Saint Petersburg (4.6), Novosibirsk
(1.4), Yekaterinburg (1.3), Nizhny Novgorod (1.3), Kazan (1.1), Samara (1.1), Omsk (1.1),
Chelyabinsk (1.1), Rostov-on-Don (1.0), and Ufa (1.0).
Russia and ROW Comparison
Russia’s position in the world in production of certain industrial and agricultural products

Crude Oil Production

2009
mbpd
15 10.0 9.7
10 7.2
4.2 3.8 3.2 2.5 2.5
5 3.0 2.6
0
Russia Saudi USA Iran China Canada Mexico UAE Iraq Kuwait
Arabia
Source: BP

Gas Production 1st by crude oil

2009 production, gas and iron
bcm ore reserves

720 593 528

540
360 161 131 103 89 85 81 77 72
180
0
USA Russia Canada Iran Norway Qatar China Algeria Saudi Indonesia
Arabia
Source: BP

Coal Production
2009
mln tons
3,500 3,050
2,625
1,750 973
558 409 298 252
875 250 184 135 102
0
China USA India Australia Russia Indonesia RSA Germany Poland Kazakh-
stan
Source: BP

Global Leader in Metal Reserves

% of total global reserves

25%
19% 18% 11%
9% 9%
13%
6% 4%
0%
Iron Ore PGM Gold Nickel Copper
Russia's
Ranking 1 2 3 3 9

Source: US Geological Survey, 2010

Russia and ROW Comparison (continued)
Wheat
2008
USD bn
18 15.8
11.7
12 9.3
6.7
6 4.5 4.4 3.0 2.7 2.6 2.4

0
China India USA Russia Canada France Pakistan Australia Ukraine Turkey
Source: FAO

Sugar Beet
2008
USD bn
1.5 1.4 1.3 1.1 1.1
1.0 0.7
0.4 0.4 0.4 0.3 0.2
0.5
0.0
France Russia USA Germany Turkey Ukraine Poland China UK Nether-
lands

Source: FAO

Milk
2008
USD bn

25 22.8
20 11.7
15 9.5 7.8
10 7.4 7.3 6.4 3.6
4.0 3.2
5
0
USA India China Russia Germany Brazil France New UK Poland
Zealand

Source: FAO

Meat
2008
USD bn

25
19.0
20
13.0 11.9
15
10
5 3.0 2.3 1.5 1.4
1.8 1.8 1.6
0
USA China Brazil Mexico Russia Iran Indonesia Japan UK Argentina
Source: FAO
Key Macroeconomic Indicators

2006 2007 2008 2009

Production Indicators
GDP change (%), year-on-year 1 7.7 8.1 5.6 -7.9
Industrial output, change (%), year-on-year 6.3 6.8 0.6 -9.3

Manufacturing, change (%), year-on-year 8.4 10.5 0.5 -15.2

Extraction of mineral resources, change (%), year- 2.8 3.3 0.4 -0.6
on-year
Fixed capital investment, change (%),year-on-year 16.7 22.7 9.9 -16.2

Fiscal and Monetary Indicators

Deficit (surplus) of the federal budget, (% of GDP) 7.5 5.4 4.1 -5.9
Federal government balane, share of GDP (%) 1 2 8.4 6.0 4.9 -6.3
M2, change (%), year-on-year 3 44.5 48.0 20.2 9.1
Inflation (CPI), change (%),year-on-year 9.0 11.9 13.3 8.8
GDP deflator 15.1 13.9 18.4 2.5
Producer price index (PPI), (%), at year-end 10.4 25.1 -7.0 13.8
Nominal exchange rate, average, RUB/USD 27.19 25.58 24.85 31.75
Real effective exchange rate, 2000 = 100 (IMF) 163.4 172.7 184.4 172.3
Real effective exchange rate, change (%), year-on- 9.4 4.2 5.1 -5.6
year (IMF)

Reserve Fund, USD bn, at the end of period 137.1 60.5

National Wealth Fund, USD bn, at the end of the 88.0 91.6
period

Reserves (including gold), USD bn, at the end of the 303.7 478.8 426.3 439.5
period

Source RusStat, Central Bank of RF, EEG, IMF, company estimates.

3
YoY change is calculated for annual average money mass of M2
Key Macroeconomic Indicators (continued)

Key Indicators

2006 2007 2008 2009

Balance of Payment Indicators

Trade balance, USD bn (monthly) 139.3 130.9 179.7 111.6
Share of energy resources in export of goods, % 63.3 61.5 65.9 62.8
Current account, USD bn 94.7 77.8 103.6 49.4
Export of goods, USD bn 303.6 354.4 471.6 303.4
Import of goods, USD bn 164.3 223.5 291.9 191.8
Gross foreign direct investments, US bn 29.7 55.1 75.0 36.8
Average export price of Russian crude oil, USD/bbl 61.1 69.3 94.4 61.1
Financial Markets Indicators
Weighted average corporate loan rate, % 1 10.4 10.0 12.2 15.3
CBR refinancing rate, %, at the end of the period 11.0 10.0 13.0 8.75
Real average rate on RUB loans, % (deflated py PPI) 1.6 0.9 -1.7 3.2
Stock market index (RTS, in RUR, at the end of the 1.922 2.291 632 1.445
period)
Corporate Financial Condition
Share of loss-making companies 1 29.7 23.4 25.2 30.1

Share of loans in capital investments 1 14.3 15.5 17.6 20.1

Profitability (net profit/paid sales), % 1 25.6 36.8 21.5 28.7
Income, Poverty, and Labor Market
Real disposable income, (1999 = 100%) 219.0 245.6 251.3 257.1
Average wages in USD 390.9 532.2 695.8 587.0
2
Unemployment (%, according to ILO definition) 6.7 5.7 7.0 8.2

Source RusStat, Central Bank of RF, EEG, EIU, IMF, company estimates.

1
Average weighted rate for RUR loans to non-financial institutions up to 1 year.
2
According to a random poll of population on employment issues as of the end of November.
Employment and Education
DISTRIBUTION OF EMPLOYED POPULATION
BY AGE AND EDUCATION IN 20091
(as of the end of November; percentage of total)
Total Men Women
Employed – total 100 100 100
Including people aged, years:
Less than 20 1.1 1.4 0.8
20 - 24 9.5 10.3 8.6
25 - 29 13.6 14.5 12.8
30 - 34 12.7 13.0 12.4
35 - 39 12.1 12.0 12.2
40 - 44 11.7 11.2 12.2
45 - 49 14.4 13.4 15.4
50 - 54 12.9 11.9 13.9
55 - 59 8.0 8.4 7.7
60 - 72 3.9 3.8 4.0
Average age of employed population, years 40.0 39.4 40.5
Employed – total 100 100 100
Including those with:
Higher professional education2 29.0 25.8 32.2
Secondary professional education 27.5 22.5 32.8
Primary professional education 18.7 23.0 14.1
Secondary education 20.1 23.0 17.1
Primary education 4.5 5.4 3.6
No education 0.3 0.3 0.2

1
According to a random poll of population on employment issues.
2
Including post-university education.
Economically Active Population

As percent of the total1

1992 1995 2000 2004 2005 2006 2007 2008 2009 2010

Economically Active 100 100 100 100 100 100 100 100 100 100
Population – total
Including:
Employed 94.8 90.5 90.2 92.1 92.9 93.3 94.3 93.0 91.8 93.2
Unemployed 5.2 9.5 9.8 7.9 7.1 6.7 5.7 7.0 8.2 6.8
Men 100 100 100 100 100 100 100 100 100 100
Including:
Employed 94.8 90.3 89.8 92.2 92.5 93.0 94.0 92.5 91.6 92.9
Unemployed 5.2 9.7 .10.2 7.8 7.5 7.0 6.0 7.5 8.4 7.1
Women 100 100 100 100 100 100 100 100 100 100
Including:
Employed 94.8 90.8 90.5 92.0 93.4 93.5 94.7 93.6 92.1 94.6
Unemployed 5.2 9.2 9.5 8.0 6.6 6.5 5.3 6.4 7.9 6.4

1
According to the data obtained from a random poll of population on employment issues: 1992, 1995, 201 0 – as of the end of October; 2000-
2009 – as of the end of November. Starting from 2006 data includes Chechen Republic.
Unique Geographical Location

 The longest border in the world: ca.

60,000 km
Border with 18 countries in
Unique location and Europe, Asia, and America
transport access
 Direct access to 12 seas and 3 out of 4
oceans
 Proximity of the largest developing
countries, i.e. China and India

 Largest country in the world

Total area of land – over 17
mln sq.km (6.5 mln sq. miles)
 Different climatic and natural
Vast land resources environmental zones (zone of arctic
desert, tundra zone, forest tundra
zone, zone of mixed and hardwood
forests, forest steppe zone, steppe
zone, zone of semi-deserts and zone
of deserts)

 Availability of resources for cheap

hydro power in European part of
Russia and in Siberia
Around 120,000 rivers of more
Unique opportunities
in the renewable than 10km each, total length of
energy industry waterways over 2.3 mln km
 Substantial potential to generate
alternative power based on wind,
geothermal, sun power, and energy of
biomass
Economic Ties and Integration with CIS Countries

 Opportunities for further economic growth through economic and institutional integration
with CIS countries
 Recently-formed Customs Union between the Russian Federation, Kazakhstan and
Belarus increases the total market by ca. 20%
 Current initiatives on Common Economic Space and Free Trading Zone target further
integration

 Common trading zone, common unified customs tariffs and

other regulatory requirements for Russia, Kazakhstan and
Belarus
Kyrgyzstan and Tajikistan have requested to join the
Customs Union Union
 Comes into effect from January 1, 2010
2010-2011 Initiatives
 Cancellation of customs control within the Customs Union
 Elimination of Customs Posts

 Consists of Russia, Kazakhstan, and Belarus

Kyrgyzstan and Tajikistan have requested to join
 Free movement of goods, services, capital and labour
 Common tariff for natural monopolies
Common Economic  Expected for completion in 2012
Space

 Substitution of existing bilateral agreements between CIS

countries with a common agreement aimed at creating
favorable conditions for exchange of resources,
establishment of a common market and partnership in
financial policy and activities of companies
Free Trade Zone Draft agreement was prepared in 1Q2010
 Negotiations on establishing Free Trading Trade Zone with
New Zealand, European Association on Free Trading,
Vietnam

Enormous internal market

potential of Common
Economic Space (CES)
Human Capital
 Highly educated labour force.
 One of the 7 leading countries by the number of Nobel Prize winners, most of prizes
awarded for achievements in the field of physics.
 High level of basic education.
 Significant scientific research and technical resources base.
 Substantial human capital supporting favorable opportunities for innovative growth.

Highest level of educated

Level of Education – BRIC Countries population among BRIC
countries
%

120%
94% 94% 96%
92% 87% 91%
90%
74% 78%
52%
60%

26% 26%
30%
15%

0%
Russia Brazil India China
Primary Secondary Higher
Source: report of UNESCO, 2006

Share of Literate Education – BRIC Countries

120%
99% 99% 99% 98%
93% 90% 82%
90%
66%
60%

30%

0%
Russia China Brazil India
Adults Children
Source: report of UNESCO, 2006
Russia – Investment Priorities
Diversification of Economy –Development Priority
 Share of mineral resources sector in GDP and in export is still fairly high; however,
specific measures are taken in order to diversify Russian economy, this should have a
positive effect on competitiveness of Russia in the world market

Historical Structure of Russian Export

100.0

80.0

60.0

40.0

20.0

0.0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Minerals Metals Chemicals Machinery

Wood Food and agricultural goods Other

Source: Federal State Statistics Service

 Key areas of diversification identified by the Russian President:

Energy efficiency;
Nuclear technologies;
IT and software;
Space technologies and telecommunications;
Medical technologies and pharmaceuticals.
The goal is to modernize
and to diversify the
economy
Priorities in Modernization of RF Economy

Energy Efficiency
Main Objectives
 Reduce Russia’s energy intensity to GDP ratio by 40%
through energy saving, improving energy efficiency and
eliminating regulatory gaps by 2020

Launched Projects
 Count, Save & Pay: forming and promoting prudent energy
consumption, coordination of manufacture and installation of
meters
 New Light: gradual replacement of incandescent lamps by
energy-efficient light sources, including development of
domestic production of energy-saving replacements
 Energy-Efficient Homes: overall improvement of energy
efficiency in residential blocks in selected cities
 Energy-Efficient Social Sector: implementation of power
saving programmes in public schools and clinics
 Small-Scale Complex Power Generation: improving heat
and electric power supply in Russian regions through
manufacture and use of energy-efficient equipment for local
power generation
 Innovative Energy: encouraging innovative solutions in
power generation through a national energy efficiency
competition
Priorities in Modernization of RF Economy
(continued)

Space Technologies and Telecommunications

Main Objectives

 Increase the efficiency and quality of information services

 Develop a modern information infrastructure in all sectors
of the national economy

Launched Projects

 Space Navigation, GLONASS: enabling the provision of

navigation services to broad range of users: emergency
services, transportation, construction, oil and gas, logistical,
power companies, individual users
 Space-Based Monitoring and Tracking: remote sensing of
the Earth atmosphere and surface; search for minerals,
monitor the environmental situation, weather forecast,
rescue operations in remote regions
 Space-Based Targeting Systems: military and emergency
assistance, monitoring of global atmospheric processes and
other applications
 Space Telecommunications as Part of Broadband
System: switching to broadband systems, especially to
digital broadcasting
Priorities in Modernization of RF Economy
(continued)

Medical Technologies and Pharmaceuticals

Main Objectives

 Production of the most actual medications and medical

equipment in Russia
 Development and production of innovative medical
products, expansion of Russian manufacturers into new
markets

Launched Projects

 Projects related to development and manufacture of

pharmaceuticals, medical equipment and health products
aimed to promote the growth of innovative biotechnology,
cell, nuclear, and nanotechnologies in healthcare
Priorities in Modernization of RF Economy
(continued)

Information Technologies and Software

Main Objectives
 Develop a high-performance, application-oriented
computing systems
 Improve the efficiency and quality of information services
 Develop a modern social and industrial information
infrastructure
Launched Projects

 Development of Supercomputers and Grids: building a

high-performance, application-oriented computing
environment based on multiple supercomputers;
development of the grid infrastructures
 E-Government: acceleration of the introduction of
electronic public services and remote paper-free interaction
between government bodies and individuals and companies
 ICT Services in Education and Social Development: new
educational Internet resources, focused on improving the
accessibility, efficiency and quality of general and
professional education
 ICT Services in Healthcare and Social Services:
computerisation and quality improvement for social
services, personal health monitoring; medical reference
systems aimed to unify the medical decision-making process
in diagnosis, treatment selection, and drug prescription;
automation of information flows
 ICT Services for Life Safety: speech recognition,
processing and enhancement, voice synthesis and biometry
systems, real-time video surveillance, target recognition and
emergency detection systems aimed to increase efficiency of
emergency activities
Priorities in Modernization of RF Economy
(continued)

Nuclear Technologies
Main Objectives

 Overall and consistent development of the national nuclear

power potential
 Guarantee long-term supply of cheap energy
 Maintain Russia’s leadership on the global nuclear market
 Substantially reduce uranium consumption
 Mitigate environmental impact and nuclear proliferation risk

Launched Projects

 VVER-1000 Standard Optimised Computerised Power

Generating Unit: creation in 2012 of a modern nuclear
power plant utilising a water-moderated reactor, adapted for
the Russian, European, and US markets
 New Technology Platform: closed nuclear fuel cycle and
Fast-Neutron reactor - forming a brand new platform for
the nuclear power industry based on fast-neutron reactor
plants
 Controlled Thermonuclear Fusion: implementation of
power generation technologies based on controlled
thermonuclear fusion, allowing for power generation
independent from fossil fuel
 Fundamental Research: development of fundamental
science for nuclear energy
Capital Inflow into Russia

 In Russia there are no restrictions on free movement of capital both in case of

investments by foreign investors into Russia and in case of export of capital out of
Russia

The only limitation is investment in strategic companies which have special

importance for national security and economic stability

At the same time, there are restrictions on direct foreign investments in China and
India, and Brazil is planning to limit free movement of capital

 Unlike China and India, in Russia there are no foreign currency limitations

The only limitation is the regime of managed floating RUR exchange rate, when
the conventional floor and cap values for ruble are set with respect to the dual
currency basket

At the same time, there are foreign currency limitations in China and India

Structure of Foreign Investments in Russia 1

2 2
2006 2007 2008 2009 2010 (9 months)

Direct 29.8 55.1 75.0 36.7 25.1

Portfolio 8.1 13.1 -38.1 -4.9 0.6

Other 30.3 139.8 63.2 -25.2 4.4

Total 68.2 207.9 100.1 6.6 30.1

Virtually no restrictions
on free movement of
capital

1
Source: Bank of Russia, according to balance of payments
2
Foreign investments in private sector; «-» means net reduction of liabilities to non-residents
Goals of the Programme on Improvement of the
Investment Climate in Russia

 New liberalized procedure for issuance of work permits to foreign citizens

Simplification of the registration procedures, possible extension of the visa term

for up to 3 years

Abolishment of quotas for issuance of work permits and their unification

Optimization of procedures for access of business entities to the infrastructure

Development of a standard agreement and material provisions for connection to

the grid and networks
Large-scale measures to
Identification of the list of users entitled to mandatory improve investment
climate
receipt of services

 Simplification of conditions and procedures for allocation and receipt of land plots and
construction activities, shorter period for issuance of construction permits

 Simplification of customs formalities in case of export of high-technology goods and

machinery

 Coordination of assistance to investors and protection of investor’s rights

Creation of a “one-stop shop” principle for requests review at the level of the
Ministry of Economic Development; complaints may be submitted directly to
I.I.Shuvalov, First Deputy Prime-Minister of the RF

 Liberalization of the Russian tax policy

Separate tax regime for companies working in high-technology industries

Profit tax exemption:

In case of sale of securities if over 5 years and over 10% in ownership

For companies providing services in education and health care sectors

Russian Banking System

 At the beginning of 2010, total assets of the Russian banking system

amounted to approximately $973 Bn

 Relatively low deposit activity in retail banking among BRIC countries – 12%
in Russia vs. 30% in China

 State-owned banks account for over 40% of the total banking assets,
around 33% of all corporate deposits and 59% of all retail deposits

In India around 75% of all banking assets are controlled by the state,
in China – up to 80%

 101 Russian banks are controlled by non-resident entities, representing

around 19% of all banking assets

 In Russia there are over 800 medium and small regional banks,
representing around 5.4% of all assets

 Russian banking system is characterized by high share of own funds –

around 15% in 2009

In Brazil – around 15%, in China – around 4%, in India – 6%

At European banks, the share of own funds in liabilities is around 6%

on average

 Relatively low competition in domestic banking sector: on average one

Russian bank (except SberBank) has 3 branches (75 in Brazil, and 163 in
India)

 The scope of anti-crisis measures taken by the Bank of Russia in 2008-

2009 has been estimated at 14% of the total banking assets

The highest share of own

funds in the banking
system among BRIC
countries
Taxes in Russia vs. Other BRIC Countries

Income Tax
Country Corporate Income Personal Income VAT
Tax Tax
China 25% 5-45% 23%

Brazil 34% 7.5-27.5% 17-25%

India 30-40% 10-30% 12.5%

Russia 20% 13% 18%

Taxes in Different Countries in 2009, as % of GDP1

Belarus 27.5% Italy 43.3%

Brazil 35.3% Japan 27.9%
Canada 33.3% Kazakhstan 26.7%
China 18.3% South Korea 28.7%
France 45.0% Great Britain 37.9%
Germany 40.8% USA 28.3%
India 18.8% Italy 43.3%
In 2009 the total taxes in Russia as % of GDP (39,064 trln RUR) amounted to 30.8 %

 Russia has the most liberal and favorable tax regime among all other BRIC
countries:

Lowest corporate income tax - 20%

Personal income tax of 13%, regardless of income size

Opportunity to have a one-time write-off of 30% Low corporate and

of depreciation costs for tax purposes personal taxes

From January 2011 – zero profit tax for educational and health care
institutions

From 2011 there will be no capital gain tax in case of long-term direct
investments

1
Source: The Heritage Foundation – index of economic freedom for 2010.
Privatization Plans

 The main objectives of the government policy in the area of federal property
privatization during 2010-2012 are

Structural reforms in the respective sectors of the national economy

Privatization of the federal property that does not support government

functions and federal powers of the Russian Federation

Creating favorable conditions in order to attract off-budget

investments for the development of companies

Income formation for the federal budget

 The list of investment banks to be involved in organization of the federal

property privatization and/or to perform other functions of a seller on behalf
of the Russian Federation includes Credit Suisse, VTB Capital, Deutsche
Bank, VEB Capital, JPMorgan, Merrill Lynch, Morgan Stanley, Goldman
Sachs, Renaissance Broker and the Russian Auction House

 In 2010 it is planned to complete privatization of about 250 federal state

unitary enterprises, privatization procedures for which started in 2009
Privatization Plans (continued)

 The following privatization programme has been developed for 2011-2015:

Government
Company Stake / comments
stake

 In 2010: 10% of shares, in 2011: 10%, in 2012:

VTB 85.5%
15.5%-1 share

 In 2011: 25% of shares, in 2012-2013: 25%-1 share

SovComFlot 100% with the possibility of reducing the RF interest in 2014
- 2015 below controlling stake

United Grain
100%  By 2012: 100% of shares
Company

RusHydro 57.97%  During 2011-2013: 7.97%-1 share

FGC UES 79.11%  During 2011-2013: 4.11%-1 share

 During 2011-2013: 7.58%-1 share owned by the

SberBank 57.58%
Bank of Russia

Rosneft 75.1%  By 2015: 25%-1 share

RosAgro-  During 2013 – 2015, with RF retaining the controlling

99.9%
Leasing stake (50%+1 share)

RAB 100%  By 2015: 25% of shares

RZD 100%  Starting in 2013 up to 25%-1 share